Overview
The 2023 Revised National MSME Development Policy provides Zambia with a strategic framework to strengthen the role of Micro, Small and Medium Enterprises (MSMEs) in national development. It updates the 2009 policy to address changing global and domestic business conditions, including digitalisation, regional trade integration under the Africa Continental Free Trade Area (AfCFTA), and lessons learned from disruptions like the COVID-19 pandemic.
The policy aims to transform MSMEs into engines of wealth creation, job generation, innovation, and economic diversification, while enhancing Zambia’s competitiveness at both domestic and international levels.
Importance of MSMEs
- MSMEs account for 97% of all businesses in Zambia, contribute 70% of GDP, and provide 88% of national employment.
- Despite this contribution, the sector faces constraints including limited access to finance, poor uptake of technology, inadequate infrastructure, weak entrepreneurial culture, and informality.
Vision
“Prosperous Micro, Small and Medium Enterprises that significantly contribute to wealth and job creation.”
Guiding Principles
The policy is anchored on:
- Innovation – driving new products and services.
- Partnerships – leveraging collaboration between government, private sector, cooperatives, and development partners.
- Sustainability – balancing present needs with future generations.
- Good Governance – transparency and accountability in MSME support.
- Inclusiveness & Equity – ensuring participation across gender, youth, rural, differently-abled, and marginalised groups.
Policy Objectives
General Objective
To achieve sustainable growth of MSMEs and contribute to Zambia’s socio-economic transformation.
Specific Objectives
- Build a prosperous MSME sector that creates jobs and wealth.
- Drive economic diversification beyond traditional sectors.
- Foster a culture of innovation.
- Promote technology adoption and digitalisation.
- Establish a coordinated national MSME framework.
Key Policy Measures
- Finance & Infrastructure: Expand affordable financing, strengthen credit guarantee schemes, develop industrial parks, incubation hubs, and special economic zones.
- Market Access: Improve MSME access to domestic, regional, and global value chains.
- Entrepreneurship & Skills: Mainstream entrepreneurship education across all learning levels and scale up training.
- Technology & Innovation: Promote ICT uptake, e-commerce, intellectual property protection, and collaboration with research institutions.
- Formalisation: Simplify regulatory frameworks and reduce barriers to bring informal enterprises into the formal economy.
- Business Development Services: Expand quality-assured business advisory and incubation services across rural and urban areas.
Cross-Cutting Issues
The policy integrates critical issues including gender equity, youth empowerment, disability inclusion, HIV/AIDS, climate change, and nutrition, recognising their impact on business development.
Implementation Framework
- Lead Ministry: The Ministry of Small and Medium Enterprise Development (MSMED) provides strategic guidance and coordination.
- Line Ministries & Local Authorities: Collaborate in agriculture, mining, tourism, infrastructure, environment, and trade.
- Private Sector & Cooperating Partners: Support with financing, technology transfer, and value chain integration.
- Legal Framework: Anchored in the ZDA Act (2022), Investment and Business Development Act (2022), Companies Act (2017), and other supporting legislation.
- Resource Mobilisation: Funded through the national budget and contributions from cooperating partners.
- Monitoring & Evaluation: Focused on technical performance, timeliness, and cost efficiency of interventions.
Expected Outcomes
By implementing this revised policy, Zambia expects:
- Stronger, more competitive MSMEs integrated into regional and global markets.
- Increased employment and equitable wealth distribution.
- Higher adoption of technology and innovation.
- Improved business environment with reduced informality.
- Enhanced collaboration across government, private sector, and development partners.
