Legal Empowerment of the Poor: Empowering Informal Business in Zambia
LEGAL EMPOWERMENT OF THE POOR: EMPOWERING INFORMAL BUSINESSES IN ZAMBIA
By
Silane K Mwenechanya (Dr)1
An Issue Paper prepared for the UNDP – Commission on Legal Empowerment of the Poor
October, 2007
1
All comments should be addressed to Dr SK Mwenechanya at skmwene@zamnet.zm. The author is a business consultant with a special interest in private sector development. He is based in Lusaka, Zambia.
1
TABLE OF CONTENTS
LIST OF TABLES AND FIGURES............................................................................. 3 OVERVIEW................................................................................................................ 4 THE NATURE OF ZAMBIA’S INFORMAL BUSINESSES ...................................... 9 KEY BARRIERS TO EMPOWERING INFORMAL BUSINESSES IN ZAMBIA....... 13 The legal and administrative climate ................................................................... 13 Taxation .................................................................................................................. 15 Financing the informal sector ............................................................................... 15 Performance and quality standards ..................................................................... 17 EFFORTS BEING MADE TOWARDS EMPOWERING INFORMAL BUSINESSES IN ZAMBIA............................................................................................................... 18 The policy framework ............................................................................................ 18 Empowering informal sector enterprises through legislation ........................... 18 Introducing Marketing and Bus Stations Management Boards under Act No. 79 of 2007 ................................................................................................. 18 Empowering informal sector enterprises through the Citizens Economic Empowerment
By
Silane K Mwenechanya (Dr)1
An Issue Paper prepared for the UNDP – Commission on Legal Empowerment of the Poor
October, 2007
1
All comments should be addressed to Dr SK Mwenechanya at skmwene@zamnet.zm. The author is a business consultant with a special interest in private sector development. He is based in Lusaka, Zambia.
1
TABLE OF CONTENTS
LIST OF TABLES AND FIGURES............................................................................. 3 OVERVIEW................................................................................................................ 4 THE NATURE OF ZAMBIA’S INFORMAL BUSINESSES ...................................... 9 KEY BARRIERS TO EMPOWERING INFORMAL BUSINESSES IN ZAMBIA....... 13 The legal and administrative climate ................................................................... 13 Taxation .................................................................................................................. 15 Financing the informal sector ............................................................................... 15 Performance and quality standards ..................................................................... 17 EFFORTS BEING MADE TOWARDS EMPOWERING INFORMAL BUSINESSES IN ZAMBIA............................................................................................................... 18 The policy framework ............................................................................................ 18 Empowering informal sector enterprises through legislation ........................... 18 Introducing Marketing and Bus Stations Management Boards under Act No. 79 of 2007 ................................................................................................. 18 Empowering informal sector enterprises through the Citizens Economic Empowerment