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The Zambia Association of Manufacturers (ZAM) has voiced strong objections to sharp increases in council fees and rates implemented by municipalities, particularly in Lusaka.
ZAM President, Ashu Sagar, said the hikes, some as high as 300 percent, are creating significant financial strain on businesses already operating in a challenging economic climate.
In a statement issued on Monday, Sagar revealed that ZAM members in Lusaka reported dramatic increases in fees and valuations, with some tripling prior charges.
Similarly, Mazabuka businesses face a steep rise in cane levies, jumping from K0.4 to K25 per tonne.
“These increases have been implemented without transparent consultation or justification, further compounding financial pressures on manufacturers and other businesses,” Sagar said.
He expressed concern that despite these increases, municipal service delivery in Lusaka remained subpar, with issues such as poor waste collection, deteriorating roads, inadequate street lighting, and weak zoning enforcement persisting.
Sagar proposed that the Lusaka City Council (LCC) halt enforcement of the new fees until meaningful consultations are held with stakeholders, including business associations.
He also called for an independent audit to assess municipal services to ensure fee adjustments are tied to measurable service improvements.
Sagar further called for a phased implementation which he said they should gradually introduce adjustments to avoid overburdening businesses and communities.
The LCC adopted the 2024 Main Valuation Roll after the 2019 roll expired in April.
The council, under provisions of the Rating Act No. 21 of 2018, applied for an extension, leading to the implementation of new rates with increases of up to 300%.
ZAM emphasized the need for a collaborative approach, stating that the success of Zambia’s economy relies on balanced relationships between businesses and local councils.
Sagar assured that ZAM remained committed to engaging with municipalities to resolve these challenges and push for solutions that promote economic growth and accountability in service delivery.
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