ZACCI Warns Unilateral Council Fee Hikes Could Undermine Zambia’s Economic Growth
The Zambia Chamber of Commerce and Industry (ZACCI) has expressed concern over the growing trend of local authorities unilaterally raising council fees, levies and charges without consulting key stakeholders, warning that the move threatens private sector confidence, investment and overall economic growth.
In a statement issued on Monday, ZACCI noted that while central government has been working to create a favourable macroeconomic and business environment, inconsistent adjustments at the local level risk undermining those efforts.
The Chamber cautioned that the arbitrary increases are particularly burdensome for small and medium-sized enterprises (SMEs), which already face high operational costs and energy challenges.
“Additional fees imposed without prior consultation exacerbate these challenges, increasing the cost of doing business, constraining liquidity and potentially discouraging both domestic and foreign investment,” ZACCI said.
ZACCI President Anthony Kabaghe stressed that predictable and transparent fiscal measures are vital for fostering growth, competitiveness and innovation.
He warned that unilateral decisions by councils could reduce competitiveness, distort the business environment and negatively affect job creation and enterprise sustainability, key to Zambia’s industrialisation and diversification agenda.
The Chamber urged local authorities to adopt a more consultative, evidence-based approach when reviewing and implementing fees. It also reaffirmed its commitment to working with both central and local government to strike a balance between revenue mobilisation and private sector sustainability.
“A predictable and transparent business environment is critical for fostering long-term growth, attracting investment and strengthening Zambia’s position as a competitive economy in the region,” the Chamber said.
