Zambia reviews Startup Bill as digital businesses seek relief from operating costs

Building a technology business in Zambia involves more than developing a product and finding customers. Founders also have to pay to register the company, deal with regulatory requirements, find funding and cover everyday operating costs. 

For a small team, these expenses can be difficult to manage, particularly before the business starts bringing in steady revenue. Zambia's proposed Startup Bill is now part of a discussion about whether the rules and support available to young businesses are making it easier or harder to get started.

Some of these difficulties are now being examined as Zambia reviews its digital entrepreneurship policies, including the proposed Startup Bill. Smart Africa and Zambian stakeholders recently held a workshop to discuss the findings of an assessment of the country's digital entrepreneurship environment. Government officials, business representatives and other participants looked at where existing policies fall short and what needs attention.

The proposed Startup Bill was one of the main subjects. Participants reviewed its progress and discussed policy changes that could make it easier for startups to operate.

A law is only useful if businesses can use it

The proposed bill has attracted attention because startups often operate under the same rules as much larger companies, despite having fewer employees and less money to deal with administrative requirements.

A founder may be responsible for finding customers, managing staff, keeping the accounts and handling registration or regulatory matters. When these processes become complicated, they take time away from running the business. However, introducing a Startup Bill will not automatically solve those problems. What matters is whether the legislation leads to practical changes for businesses.

That could include clearer requirements, easier administrative processes and access to support that smaller companies can actually use. The workshop reviewed the proposed legislation, but it has not yet become law.

What happens after the workshop?

Participants also discussed the relationship between government and private businesses. This is an important part of the policy process because entrepreneurs deal with the consequences of business regulations every day. Their experiences can help identify problems that may not be obvious when policies are being developed. Investors and other private sector organisations can also explain what makes it difficult to fund or support young companies.

The assessment and workshop discussions have put these issues on the table. But Zambia still has to decide which recommendations to adopt and how to put them into practice.

For startup owners, the real test will be whether they spend less time dealing with administrative hurdles and have better access to the support needed to build their companies. Until the proposed changes are introduced, there is little that businesses can act on.