Backlash against Zambia’s new mining tax is loud but baseless
The time is long overdue for Lusaka to stand firm in the face of intimidation tactics from mining giants grown accustomed to the state’s largesse
Next month, Zambia’s newest mining tax regime will enter into force. According to claims circulated by multinational mining houses that dominate the country’s sector, the new legislation will spark “mass layoffs” and threaten a collapse of the nation’s economy. But if we really want to have an honest debate about mining and social development, any objective examination of the numbers indicates precisely the opposite outcome. The new tax regime, first announced by finance minister Margaret Mwanakatwe last September, aims to shore up Zambia’s foreign currency reserves and rein in debt to put the country on a path toward fiscal stability. With the IMF warning that Zambia’s fiscal deficit and debt load will preclude the country from aid programmes, the urgency of this long overdue reform cannot be overstated. Mineral resources are non-renewable. Zambia’s copper deposits will not be around forever, and ensuring that the revenue from its extraction reaches the Zambian people is paramount...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.