Zambia is losing an estimated 18.4 million Kwacha in revenue each year because most cooperatives fail to file their annual returns. Small and Medium Enterprise Development Minister, Elias Mubanga, revealed that only 10 000 out of 139 000 registered cooperatives comply with the requirement.
Under the Cooperatives Act number 29 of 1998, all registered cooperatives must submit annual returns of 133 Kwacha. Mr Mubanga said the low compliance makes it difficult for the government to assess the performance of cooperatives, which play a key role in job creation and economic growth.
Speaking at a press briefing in Lusaka, the Minister warned that cooperatives that fail to pay their administrative fees will be barred from accessing government empowerment programmes and artisanal mining licenses. He stated that defaulting cooperatives will not be eligible for initiatives such as the Constituency Development Fund (CDF), Farmer Input Support Programme (FISP), Youth Empowerment Fund, Citizens Economic Empowerment Fund, or artisanal mining licenses.
To enforce compliance, Mr Mubanga said his Ministry will coordinate with other government departments providing empowerment programmes. Any cooperative applying for support must submit proof of annual returns. This requirement will also apply to cooperatives seeking artisanal mining licenses.
The Minister urged all cooperatives to cooperate with Ministry officers at provincial and district levels by submitting their returns as required. He reminded that the deadline for submission is posted on the cooperative societies management system on Zamportal and falls within three months after the end of each cooperative’s financial year.
This move aims to increase transparency, improve revenue collection, and ensure that cooperatives contribute effectively to Zambia’s economic development.