Zambia has extended its suspension of excise duty and zero rating of VAT on petrol and diesel imports for another 90 days, running from July 1 to September 30, 2026. The move, formalised through Statutory Instrument No. 56 and No. 61 of 2026, continues relief measures first introduced in April to shield households and businesses from the fallout of the Middle East conflict on global oil prices.
Government officials say the extension is designed to stabilise pump prices and cushion citizens and businesses from elevated fuel costs as the conflict continues to disrupt global oil supply chains. It reflects a broader commitment to protecting livelihoods, sustaining economic activity, and safeguarding energy security during a period of external shocks that are largely outside Zambia’s control.
For the country’s business ecosystem, and especially women entrepreneurs running logistics-heavy ventures in agribusiness, cross-border trade, and retail distribution, the extended tax holiday matters. Fuel is a core input cost across Zambian commerce, and any shift at the pump quickly moves through supply chains, from sourcing to final delivery.
Easing the operational burden on women-led MSMEs
While the relief measure applies across households and businesses alike, its effects are likely to be felt most by the small, logistics-dependent enterprises that power much of Zambia’s informal economy. In practice, this could mean:
Lower transport overheads: Reduced fuel tariffs may help market traders, smallholder farmers, and small manufacturers move goods across regions and borders without eroding already thin profit margins.
More stable pricing: By absorbing some of the pressure from global price spikes, the waiver may give small businesses more room to hold prices steady for customers at a time when household budgets are stretched.
Fewer forced cutbacks: For informal retail and distribution networks, where women make up a significant share of commercial activity, avoiding sudden cost spikes can be the difference between sustaining a business and scaling it back.
This is TWN’s reading of the likely downstream impact rather than a claim made by the government. Officials have not framed the policy specifically around MSMEs or women-led businesses. However, the mechanics of the relief, easing a universal input cost, mean its benefits will disproportionately reach the small operators for whom fuel is the biggest swing factor in monthly overheads.
A short-term fix for a long-term exposure
Zambia’s vulnerability is not new. As a landlocked, net energy-importing country, it has limited buffers against global oil price swings and has already had to reverse earlier price cuts when international crude costs surged. The current relief, like the version introduced in April, is explicitly framed as a temporary bridge rather than a structural solution.
That leaves an open question for Zambia’s small business owners: what happens after September if global oil prices remain volatile?
Diversifying fuel sourcing, building local refining capacity, and expanding access to renewable energy alternatives have all been raised in wider regional conversations about energy security, though none are tied to this specific announcement.
For now, the extension buys breathing room. For the women running Zambia’s markets, transport routes, and cross-border trading networks, that time is a real, if temporary, advantage. It underscores how directly national fiscal policy can shape the daily survival of small enterprises, and why long-term energy reforms will matter as much as short-term relief in determining whether those businesses can do more than simply endure the next shock. source Channel News Zambia
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