EY ZAMBIA LEADS DAY FOUR OF FINANCIAL LITERACY TRAINING ON RISK MANAGEMENT AND TAX COMPLIANCE TO ENHANCE SME FINANCIAL RESILIENCE

Reported by: S. Ernest.
Date: 20th February, 2025.
Lusaka, Zambia

The Zambian government, through the Citizens Economic Empowerment Commission (CEEC), continues to advance its mission of strengthening financial management skills among small and medium enterprises (SMEs). As part of this initiative, the fourth day of the ongoing Financial Literacy Training program, facilitated by the Association of Chartered Certified Accountants (ACCA), focused on two crucial pillars of business success: risk management and tax compliance. This session was conducted by EY Zambia, a global leader in financial advisory and compliance services.

Risk management is a fundamental component of running a sustainable business. The training emphasized:

1. Identifying Business Risks – Participants were guided on recognizing financial, operational, and market risks that could impact their enterprises.
2. Mitigation Strategies – Experts from EY Zambia shared best practices on how SMEs can proactively manage risks through contingency planning, diversification, and sound financial controls.
3. The Role of Insurance – The importance of business insurance in protecting against unforeseen financial losses was discussed.

Tax compliance is critical for SMEs to operate legally and avoid penalties that could threaten business continuity. The training covered:

1. Zambia’s Tax Framework for SMEs – An overview of key tax obligations, including VAT, corporate income tax, and PAYE, was provided.
2. Record-Keeping and Reporting – Proper bookkeeping practices were highlighted to ensure SMEs can efficiently manage tax filing requirements.
3. Avoiding Common Tax Pitfalls – Practical insights were shared on common compliance mistakes and how to avoid them.

This financial literacy training, fully funded by the New Dawn Government, reaffirms Zambia’s dedication to creating a thriving and inclusive economic landscape. By equipping entrepreneurs with critical financial knowledge, the program aims to:

1. Enhance SME resilience against financial uncertainties.
2. Improve compliance with national tax regulations.
3. Foster long-term business sustainability and growth.

As the training progresses, participants are gaining invaluable financial skills that will empower them to make informed business decisions, optimize operational costs, and contribute meaningfully to Zambia’s economic development.

The Agency.