How can SMEs drive local development?

Zambia economy in recent months has seen positive stability in various economic indicators, with the country’s inflation currently standing within the single digit target Band and the Central Bank projecting the statistic to remain in the band for 8 quarters.

A check by the Zambian Business Times-ZBT also shows that the exchange rate between the Kwacha and the US dollar is currently trading within the region of K18/ US dollar. Considering the general election that was recently conducted, with President Hakinde Hichilema emerging as the winner of the 2026 general election, scooping his second term in office, some experts in the financial space have indicated the need to increase stake in the mines and ensure local development is driven by SMEs.

Economic expert Trevor Hambayi has emphasized the need to develop the Small and Medium Enterprise sector and increase equity ownership in the mines.

Speaking in an interview with Zambian Business Times-ZBT Hambayi noted following the stability seen in various macroeconomics indicators, government should focus on developing the SME sector ” Now that we have seen stability in the country’s macroeconomic indicators, as President Hakinde Hichilema continues in his second term of office, the focus should be around developing the SME sector as that will speak to SME being able to drive local development considering that the sector creates about 70% of Jobs in the country ,” said Hambayi.

He added that increasing government equity ownership in the mining sector could help increase benefits from the mining sector. ” Government needs to ensure that equity ownership in the mines is at least around 40% as that will create more revenue for the country and help in driving local development,”said Hambayi.