VNc#2026: What the Next Government Must Do to Make Zambia’s Indigenous MSMEs Thrive
By Comm. VPM Nyasulu
As Zambia approaches the August 2026 general elections, much attention is rightly focused on who will form the next Government. Yet beyond the politics lies a far more important question:
What must the next Government do differently to enable Zambia’s indigenous Micro, Small and Medium Enterprises (i-MSMEs) to finally thrive?
For decades, successive governments have acknowledged the importance of MSMEs.
Numerous policies have been developed. Institutions have been established. Empowerment funds have been launched. Training workshops have been conducted.
Yet the contribution of indigenous MSMEs to Zambia’s economic transformation remains
well below its enormous potential.
The problem is not a lack of entrepreneurs.
The problem is the ecosystem within which they operate.
The next Government must therefore shift from supporting MSMEs to building an economy designed for MSMEs to succeed.
First, Government must adopt an explicit National Indigenous Enterprise Development Strategy with measurable targets. Every ministry, province and local authority should be required to demonstrate how its policies increase indigenous enterprise participation.
Second, access to finance must be fundamentally reformed. Most indigenous entrepreneurs do not lack ideas—they lack affordable, patient capital.
Financing should reward productivity
and growth rather than simply collateral ownership.
Credit guarantee mechanisms, venture capital, cooperative finance and alternative security frameworks should become mainstream
rather than exceptional.
Third, Government procurement must become the single largest market development tool for indigenous businesses. Public procurement should deliberately develop local suppliers through transparent preferential procurement, prompt payment systems and supplier development programmes that enable small enterprises to graduate into larger contractors.
Fourth, Zambia must aggressively pursue value chain localisation. Too many indigenous enterprises remain confined to trading finished imported goods while participating minimally in domestic production. The future belongs to enterprises integrated into agriculture, mining, manufacturing, tourism, construction, technology and the emerging green economy.
Fifth, regulatory reform must become continuous rather than episodic. Business registration, licensing, taxation, labour compliance and local authority requirements should become
simpler, digital and proportionate to enterprise size. Compliance should encourage growth—not discourage formalisation.
Sixth, enterprise education must begin long before adulthood. Schools, colleges and universities should cultivate entrepreneurship, innovation, financial literacy, ethics, problem-solving and productivity as core competencies. Zambia needs more job creators alongside job seekers.
Seventh, infrastructure planning should deliberately include indigenous enterprise zones.
Affordable industrial parks, serviced market centers, agro-processing hubs, digital infrastructure, reliable electricity and logistics networks remain essential ingredients of enterprise competitiveness.
Eighth, indigenous enterprises must become export-oriented. Regional markets under the
African Continental Free Trade Area (AfCFTA), together with COMESA and SADC, offer
enormous opportunities if local firms receive practical assistance with standards, certification,
branding, packaging and trade facilitation.
Ninth, institutions supporting MSMEs require stronger coordination. Rather than multiple
agencies working independently, Zambia needs an integrated enterprise development of cosystem linking finance, research, innovation, technology transfer, mentorship, incubation
and market intelligence.
Finally, leadership itself matters.
Economic transformation requires consistency beyond political cycles. Indigenous enterprise
development should become a national development agenda shared across political parties
because prosperous citizens ultimately strengthen the nation regardless of who occupies
public office.
The next Government will inherit many challenges—employment, debt, industrialisation, poverty reduction and economic diversification among them.
Fortunately, the solution to many of these challenges already exists. It exists in millions of
hardworking Zambians whose businesses simply require an enabling environment in which to
innovate, invest, expand and compete.
When indigenous MSMEs thrive, households prosper. When households prosper, communities flourish. When communities flourish, Zambia succeeds.
Naluta mafumu, Chiuta wamutumbikani! _______________________________________________________________
The Author can be reached on +260 955 746 997 or via email at vpmn69@gmail.com
