BRRA TO REDUCE ALL NECESSARY LICENSES FOR BUSINESS ENTITIES

“A lot of Small and medium-sized enterprises (SMEs) in the country are facing an uphill battle as they navigate regulatory burdens due to high operational costs, and economic instability………………kapalu

By Daily News Reporter

Speaking during to journalists in Lusaka Business Regulatory Review Agency Board Chairperson Dominic Kapalu, stated that one of the major challenges is the complex and costly licensing process, which forces business owners to go through multiple regulatory agencies.

And despite these assurances, many SMEs believe the current business environment remains unfriendly. The high cost of fuel, rent, and raw materials, combined with inflation, has drastically reduced their profit margins.

Mr Kapalu further said that the agency is trying to reduce all necessary licenses that businesses must operate within the law. Opportunities like the Lobito Corridor, which is expected to boost trade and ease the movement of goods, offer some hope.

Kapalu noted that this initiative could open new avenues for small businesses which the Lobito Corridor provides opportunities for businesses in transportation and trade and facilitate access by ensuring regulatory services are streamlined.

He urged the government to implement risk-based regulations, where businesses are only subjected to oversight proportional to their level of risk. With the promotion of risk-based regulation it will apply to small businesses, allowing them to grow

The difficult economic climate is also pushing many informal businesses to operate outside legal frameworks, increasing concerns about compliance and enforcement.

While Kapalu emphasized the importance of following the law, he also recognized that rigid policies may push businesses underground.

As Zambia strives for economic recovery, the survival of SMEs will be crucial. While government agencies acknowledge the regulatory burden, business owners remain skeptical about whether real change will come soon enough. If reforms are not accelerated, many small businesses could be forced to shut down, further straining an already struggling economy.