Trade enthusiast, Simumba, calls for tax reforms, infrastructure improvements to boost Zambia’s manufacturing sector

Trade enthusiast, Trevor Simumba, has called on the Zambian government to relax regulations in the manufacturing sector and introduce incentives, such as a flat tax rate of 15 percent, to drive growth and improve competitiveness.

In an interview with Zambia Monitor in Lusaka, Simumba highlighted the high costs of doing business in Zambia, particularly in electricity, fuel, and labor, as major barriers to the sector’s growth.

He suggested that addressing these challenges required significant investment in infrastructure, particularly roads and railways, to reduce logistical costs and increase access to markets.

“Loosening regulations and improving infrastructure will not only attract investment but also help reduce the cost of doing business,” he said.

Simumba also noted that Zambia’s ability to produce its own power was an advantage, but emphasized the need for a stable and affordable energy supply to further reduce operational costs for businesses.

He called for stronger regional trade agreements, particularly with neighboring countries such as the Democratic Republic of Congo, Angola, and South Africa, to increase access to regional markets and promote economic integration.

Simumba also raised concerns over the high costs of permits and licenses required to establish manufacturing businesses, particularly for micro, small, and medium enterprises (MSMEs).

“Rationalizing these costs and reducing the number of licenses required would greatly ease the business environment for entrepreneurs,” he stated.

Simumba further advised the government to capitalize on Zambia’s unique position as the only Southern African country bordering eight others, which presents opportunities for exporting various manufactured products to regional markets.

“By implementing these reforms, Zambia can create a more conducive business environment, foster economic growth, and enhance the competitiveness of its manufacturing sector,” Simumba stated.

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