The Industrial Development Corporation (IDC) has signed a Memorandum of Understanding (MoU) with the Zambia Chamber of Commerce and Industry (ZACCI) to actualize the transition of 300,000 Micro and Small Enterprises (MSEs) into the formal sector within the next five years.
IDC CEO Mr. Cornwell Muleya and ZACCI President Mr. Anthony Kabaghe signed the landmark agreement, which aims to strengthen small enterprises’ participation in the national economy.
“Our target is to transition 300,000 of the 1.5 million MSEs in Zambia over the next five years, resulting in a total of 1.2 million new jobs,” said Mr. Kabaghe.
Mr. Kabaghe described the initiative as a bold step towards empowering the backbone of Zambia’s economy—micro and small enterprises that drive innovation, create jobs, and significantly contribute to GDP.
The transition of MSMEs will partly be implemented through ZACCIs Digital Graduation of the Informal Sector Enterprises (DIGISE) programme, which will utilize advanced digital tools, including mobile technology embedded with Artificial Intelligence (AI). A key component of this initiative is the YECA Entrepreneurship App, which will serve as the entry point for formalization and business empowerment.
The app will simplify business registration, compliance, and access to financial services, making it easier for informal businesses to integrate into the formal economy. This approach draws inspiration from successful formalization models in countries such as Brazil.
IDC CEO Mr. Cornwell Muleya emphasized the Corporation’s critical role in supporting MSEs through market access, resource mobilization, financial support through CSR grants, and public-private partnership coordination.
“This partnership is a key pillar of our 2024-2033 Transformational Strategic Plan, which focuses on driving economic growth and development in Zambia. Formalizing small businesses aligns perfectly with IDC’s mandate of job creation and industrialization, both directly and indirectly,” Mr. Muleya said.
The partnership is expected to transition small businesses from operating in unstructured environments with limited access to finance, markets, and technology, ensuring they thrive and contribute meaningfully to Zambia’s economic growth.