Call for Proposals

Assessment of Regulatory Compliance Costs on Businesses in Zambia

1. Background

The Government of Zambia, supported by the European Union’s Project – Technical Assistance to an Inclusive Regulatory Environment Conducive to Business and Investment in Zambia (hereinafter: Project), is seeking to better understand the administrative and regulatory burdens imposed on businesses. This assignment aims to capture both quantitative metrics and qualitative experiences across key sectors to create a comprehensive baseline study of the national investment climate. The assessment will serve not only as an immediate diagnostic of regulatory compliance costs—including formal and informal charges—but also as a foundation for subsequent regulatory reforms, as well as to track the Project’s impact.

The contractor for the project/contract implementation is DAI Global Belgium SRL. Consultant (individual or individuals) will be hired following the selection procedure described below to conduct the assessment.

2. Objectives of the Assignment

General Objective

To capture and analyse the detailed administrative and regulatory burden—including related costs—imposed on businesses in Zambia in order to portray a snapshot of investment climate related to registration and licensing and provide inputs into further regulatory simplification work.

Specific Objectives

Reference Review: Work with the Project team to review relevant references to determine the scope of administrative and regulatory burdens. Determine the areas not appropriately covered by the reading.

Methodology Finalisation: Organise consultations with the private sector to reflect Zambia’s regulatory realities. Propose a methodologically sound sample focusing on selected sectors (agribusiness, construction, and commerce [wholesale and retail]) and specific geographic regions (e.g. Lusaka, Kitwe, and Kasama). Verify the focus group/interview methodology to ensure conformity with the assignment objectives.

Empirical Data Collection: Conduct (i) minimum of three focus group discussions within the preselected sectors to gather in-depth qualitative assessments, per the three regions (above). Engage in (ii) interviews or focus group discussion with individuals and businesses in the informal economy to explore their challenges in formalising (not place-bound).

Analysis and Reporting: Process and analyse both quantitative and qualitative data. Prepare a detailed report summarising findings from the consultation processes, with specific attention to sectoral differences, cross-cutting issues (e.g., gender), and systemic overlaps in regulatory procedures. Annex the matrix of licences, permits: Division by sectors, or geographic regions covered by the review (e.g. in the process of business registration, operational permits for specific industries, or local council vs. national licensing processes). The details of each licence will capture the current licensing procedures and provide their impact on businesses (direct in fees, levies etc.) and indirect (e.g. waiting time, engagement of specialist, multi-stage process and dependence on other public institutions etc.), local/national regulation, as well as frequency of compulsory licensing and any procedural changes for the recurring applications. Overlaps with other regulatory requirements, particularly redundant or overlapping licences and permits are to be highlighted.

3. Scope of Work

The selected consultant (Senior NKE – Regulation Expert) and, as needed, a support consultant (Junior NKEs) will be responsible for:

Data Collection and Analysis: Determine knowledge gaps resulting from the preselected references. Gather quantitative and qualitative inputs using proposed methodology to populate these gaps. Focus group discussions are aimed to delve into emerging issues. Carry out cross-comparative analysis by sector, geographic region, and firm size.

Reporting: Prepare an (i) inception report detailing the methodological approach, followed by a comprehensive final report. The (ii) final report should detail regulatory procedures (quantified in time and broken down by cost categories), pinpoint any redundant requirements, and provide a list of observations/recommendations. Annex the matrix of all licences with details, as described above.

Stakeholder Engagement: Maintain regular communication with the Project team, the beneficiary (Government of Zambia) as advised by the Project team, and other key stakeholders during the assignment.

Administrative Outputs: Submit monthly timesheets (template will be provided) that detail conducted tasks.

4. Expected Deliverables

Inception Report: A detailed methodological proposal that finalises the approach and delineates the work plan (including timeline and milestone outputs) based on the preselected sectors.

Final Report: A comprehensive document presenting the findings of all research activities. This report should combine both quantitative and qualitative analyses and outline recommendations for addressing identified regulatory and administrative challenges. The final report will be submitted for review by the Project team and later presented at a dedicated beneficiary event. The consultant will be available to provide follow-up consultations for six months after submission for any required additional extractions from the database.

Administrative Documentation: Monthly timesheets.

5. Proposed Methodology

Applicants must submit a detailed methodology as part of their technical proposal. This section should describe how the consultant intends to:

Collecting data:

Preparatory work

Official Data: To make informed decisions on structure of the instruments, reference materials provided by the project on registration and licensing process available from past research.

Interviews: If necessary, engage legal experts to provide insights into the practiced procedures.

Field work

• Propose the Instruments: Explain how the instruments will reflect Zambia’s regulatory realities, including pilot testing and any intended adjustments for the survey.
• Design the Sample: Detail the approach for constructing a statistically and methodologically sound sample:; (i) for qualitative focus group survey of three groups of businesses in the outlined sectors (agribusiness, commerce, and construction) and geographic regions; and (ii) for interviews or a focus group of informal businesses/entrepreneurs.
  • Objective: Obtain qualitative insights that standardised metrics may miss, including local business sentiments and ground-level operational challenges.
  • Execution: Organise focus groups in key economic zones: Lusaka, Kitwe, Kasama. Visits to the informal sector businesses (what keeps them away from formalising); not place-bound.
• Conduct Data Collection: Outline the process for: (i) quantitative data collection (processing times, compliance costs, etc.); and (ii) qualitative methods (focus groups and interviews with both formal businesses and informal economy participants).
• Data Analysis: Describe the techniques that will be employed for data processing, segmentation by sector, geographic region, firm size, and inclusion of cross-cutting issues such as gender.

Measuring:

Number of Procedures: Count the steps required to legally register a business. This includes licensing and any procedure that once completed permits the business to engage in the desired economic activities. Both the national and the local level need to be captured. Three regions of Zambia are taken as proxies for the national economy (Lusaka, Kitwe, Kasama).

Time and Costs: Evaluate how long it takes and what financial resources are needed:

time (preparation, submission, waiting),
financial costs (fees etc.),
informal costs (frequency and size of informal payments, if any),
amount of documentation,
delays caused by lack of electricity or connectivity.
Regulatory Complexity: Note how clear and standardised the procedures are, as well as capture any bureaucratic hurdles.
Applicants are encouraged to provide a clear, step-by-step plan that aligns with the objectives and scope of work outlined in this call. The methodology should also address timeframes, milestones, and any potential challenges along with mitigation strategies.

6. Candidate Selection Criteria

Senior NKE – Regulation Expert

Qualifications: Minimum of a Master’s Degree (or equivalent) in a relevant field (a Bachelor’s Degree may be considered with additional professional experience). Minimum proficiency in English (C1 level or higher, both oral and written).

Experience: At least 8 years of post-graduate relevant experience, including a minimum of 3 years in public sector affairs. Prior work experience in Zambia, with a sound understanding of the Zambian private sector.

Junior NKE

If preferred, propose a junior invidiual to support the data collection and/or processing efforts. Minimum requirements for this person remain flexible to allow for the freedom of choice.

7. Submission Guidelines

Proposals should be prepared in English and submitted in electronic format. They must include, at a minimum, the following components:

1. Technical Proposal: A detailed methodological approach (see 5. above) outlining how the consultant intends to approach data collection, execute the fieldwork, conduct analyses, and produce the required reports. A work plan with clear milestones and timelines.

2. Team Composition: Curriculum Vitae of the Senior NKE – Regulation Expert and profile of the proposed Junior NKE. Demonstrated relevant experience, particularly in Zambia.

3. Financial Expectation: A breakdown of costs, including consultancy fees, fieldwork expenses, and any other direct costs, in accordance with the provided templates and guidelines. (Note: the fee will be included in the contract; coverage of other expenditures will be completed on a case-by-case basis.)

4. References/Supporting Documentation: Any further information or supporting documents that demonstrate the consultant’s capacity to deliver the assignment successfully.

Proposals should adhere to the guidelines set out in this call and must be received by the submission deadline.

8. Evaluation and Award

The evaluation of proposals will be based on:

• Technical Soundness: Relevance and feasibility of the proposed methodology.
• Experience and Capacity: Qualifications and track record of the expert(s), with special emphasis on experience in Zambia and multi-stakeholder engagement.
• Cost Effectiveness: The overall value for money offered by the proposal while meeting the Project’s objectives.

Shortlisted candidates may be invited for an interview or to provide clarifications on certain aspects of their proposal prior to final award.

9. Submission Deadline and Contact Information

All proposals should be submitted electronically to the designated contact: Noria Milukutu, Noria_Milukutu@dai.com. Only complete proposals that contain all four items listed under 7. above received by 12:00 (noon) on 30 June 2025 will be considered.

This call for proposals is intended to attract highly qualified experts capable of delivering a rigorous and comprehensive assessment of Zambia’s business regulatory climate. We look forward to receiving proposals that not only meet the outlined requirements but also present innovative approaches to understanding and addressing regulatory burdens.

If you require any clarifications or additional information regarding this call, please consult the Project representative Noria Milukutu in the official solicitation document (by email: Noria_Milukutu@dai.com) before the submission deadline.

Evaluation timeline: Shortlisted bidders might be invited for an interview following ten days upon the submission deadline. The award decision is expected to be taken by 14 July 2025 following which the contracting process will be initialised. Start of implementation is therefore envisaged for 21 July 2025.