By JAMES KUNDA –
THE Policy Monitoring and Research Centre (PMRC) says there is need to review existing business licensing legislation to help harmonise processes and regulations in view of policies aimed at promoting private sector growth.
PMRC executive director Michelle Morel said the Business Regulatory Act number three of 2014 need repealing and appealed to Government to review the existing legislation to ease the process of business
certification in Zambia.
Ms Morel said the current business licensing environment in Zambia was complex and inhibited private sector development as businesses faced compliance with multiple licenses, numerous regulatory agencies and a
complicated legislative framework.
“The lack of guidelines for new licences and alternative revenue generation methods for regulatory authorities has led to increasing costs,” she said.
She said in a statement in Lusaka yesterday that considerable effort was required to effectively implement the Act and transform the
current complex environment to promote economic growth and development.
“The Business Regulatory Act number 3 of 2014 was introduced on March 21, 2014 in an attempt to address issues of licensing and provide for an efficient, cost-effective and accessible business licensing system
in Zambia,” she said.
“Despite the vital need for reforms, limitations in the legislation significantly reduce the potential to achieve reform benefits and
there is need for clarity and amendment of key components of the legislation such as the single licensing system for each sector”.
She said the cost of business licensing reached 4.9 per cent of the Gross Domestic Product (GDP) in 2007, stating that difficult procedures delayed investment of multinational firms and presented a serious obstacle to urban, micro, small and medium enterprises.
Ms Morel said Government should therefore undertake stakeholder consultation, training and awareness creation and ensure coordination, communication and support from State and regulatory agencies to implement business legislation reforms.
