According to the Patents and Companies Registration […]

According to the Patents and Companies Registration Agency (PACRA) 2025 Annual Report, the Agency conducted a deregistration exercise during which 58,611 dormant and defunct entities were struck off the business register for failure to comply with statutory requirements.

 Speaking in an interview with Zambian Business Times – ZBT, economic expert, Naylor Kopakopa described the development as alarming, saying it reflects deeper weaknesses affecting Zambia’s small business sector.

 “The country’s economic growth is largely being driven by bigger players while many startups and small businesses continue to struggle to survive,” said Kopakopa. He added that low liquidity in the economy has made it difficult for many registered businesses to commence or sustain operations after incorporation. “The economy is growing, the GDP is growing, but it’s mainly driven by big players and not the small-scale startups because liquidity is not there in the economy,” said Kopakopa.

He told ZBT that delayed payments to government suppliers have reduced the circulation of money, weakening business activity across the wider economy. “If those suppliers are not paid, they cannot plough back into the economy, so small businesses are not being supported because there is no liquidity in the economy,” said Kopakopa.

Meanwhile, he noted that limited access to affordable finance has further discouraged entrepreneurship, arguing that heavy government borrowing has crowded out private sector access to credit. “So for me as an individual to get a loan from the bank they need a lot of documentation because they already have a borrower on standby, and that borrower is government,” said Kopakopa.

Article by Phillip Phiri