Government has maintained that it will go ahead and implement the new mining taxes despite threats of legal action by the mining firms.
Chief Government Spokesperson Michael Mulongoti says government would proceed and ensure that Zambians benefited from their God given natural resources.
Mr. Mulongoti said this in Lusaka today when he officiated at a breakfast meeting organised by the Professional Management Review (PMR).
He noted that government has decided to re-visit the mining agreements and introduce a new fiscal and regulatory regime to bring about equitable distribution of wealth in the country.
Meanwhile, Mr Mulongoti has challenged the private sector in the country to partner with government to ensure there is continued growth in the national economy.
Mr. Mulongoti further disclosed that Zambia has recorded unprecedented increase in the number of applications for investment licenses, work permits and enquiries on the investment opportunities in the mining, energy, agriculture and banking and financial services sectors.
He said this is due to the sound economic management programmes put in place by government adding that government would remain committed to supporting investors who will add impetus to ensure that the country meets the Millennium Development Goals (MDGs) and make the vision 2030 a reality.
Earlier, Commerce, Trade and Industry Minister Felix Mutati has challenged Zambian entrepreneurs to be innovative and start manufacturing products that would penetrate on the international markets.
Mr. Mutati said the Zambian entrepreneurs must aim at breaking the barriers to doing business and ensure that they make a challenge in the Zambian business sector.
He further disclosed that government is this year targeting a growth of US$3 billion in the business sector due to the good enabling environment and increased investment levels in the sector.
And Professional Management Review (PMR) Chief Executive Officer Johan Hattingh said his company will remain committed to promoting Zambian companies by showcasing their products on the international markets.
The mining taxes fiasco is another example of the short-sightedness that has costed Zambia so much. It is good that the Government is talking about revising the ridiculously low mineral royalty tax of 0.6% that the Chiluba Government tied us into at the time of low copper prices without realising that commodity prices go up and down.
All future tax concessions and rebates should have very clear and realistic expiry/renegotiation dates to guard against such situations. Government legal advisors need to put in safeguard measures such as termination clauses and windfall tax options as well as arbitration procedures to avoid the threat of legal action from the other party.
That’s the result of leaving the country on autorun!
Boneheads in charge of the nation always lead to poverty.
Malcolm Chabala #1, I appreciate your logic, excellent point mate. Mulongoti, should not beat about the bush here, I’m sure Magange consulted his legal advisors b4 pulling a fast one on the Mine investors? Magande earlier told us he was ‘negotiating’ with the mine investors even though they later denied this. You’ve announced the new taxation policy, so go ahead and implement, no mucking around. If the chaps don’t oblige, pls squeeze their balls.
why are these mining firms whinging when they operate under similar tax regimes in other countries?? whilst we appreciate these measures have affected their profitability projections they must also appreciate the deferred taxation options in the new regime.either they conform or start on an exit strategy…there are many firms of equal competence just waiting to take their place.the resource belongs to Zambia and if they want to exploit it the benefit must be mutual!!
#4 – These mining companies do not take our nation seriously due to the way we manage our affairs. How can one respect a nation in which there is no enforcement of policies that its own government has kept as a secret? How can respect a country where most of its MPs are unable to even use a computer for e-mail, or do any study of any sector on their own with the use of the Internet? Much more important, how can one respect a nation that sends half baked negotiators to a table to negotiate mining deals with most of them looking for jobs for their relatives and kickbacks?
Please govt,go ahead and implement them.those that don’t want shud leave and we don’t care coz we haven’t been benefiting anything.maybe now we shall.
#6, you obviously have no clue about the profiles of the negotiators you have called half baked!! becoz of this you point is invalid!!
How can you defend the negotiataors when the DA’s they camoe up with the mines are such a sloppy job that any right thinking Zambian wants them hanged by their balls? They were so amatuerish that they never anticipated mineral prices rising again in their lives. You respect such performance? No wonder ZAmbia is in the dustbin, with people like you that simply accept academic qualifications on face value without looking at outputs.
The negotiators that we had at GRZ side of things have not heard of “What if” scenarios in management. They were agreeing and signing things without any decision support systems to assist them justify their positions. Such stupidity must never be allowed into high level public office.
ba Pundit, you’re correct. The 1st ZCCM privatisation team was led by Francis Kaunda, an experienced competent corporate leader. However, did his team deliver to the benefit of Zambians or were they rushed into unbundling our mining assets? I personally feel the Kafue consortium was a far better deal. Nonetheless, when Anglo pulled a fast one on us, we had to quickly look for an equity partner to buy their stake in KCM. Of the 3 final bidder’s (Sterlite, Glencore & Metorex), Sterlite proved to be the best offer at the time. Dr Lewanika led the team that scrutinised these chaps. However, Chabala is right in that GRZ was short sighted and signed agreements that left us vulnerable!
#9 & #10, I feel your frustration mwana, but the sad thing is that if you dig up the cv’s of the blokes in both the pre & post Anglo mines negotiating teams, they were actually men of high caliber. We could point to other ‘dark’ forces at play like corruption & greed but the consensus is clear, they failed us miserably with their short sightedness and naivety. i.e both Kafupi and Levy’s boys messed up, and the best Levy can do now is damage control
“He [Felix Mutati] further disclosed that government is this year targeting a growth of US$3 billion in the business sector…”
What is the “business sector”? Such generalisations make it impossible for us to hold these Ministers accountable to their statements.
comrades….ZCCM was NOT a loss making organisation despite the over-the-top social responsibility it had to shoulder!! Politicians killed our mining conglomerate by ORDERING EVERY negotiating team on what to agree to!!! If you took away the social responsibility,the political interference and allowed good corporate governance methods to flourish….ZCCM would still be here today!!!FHK returned profits despite paying teachers,soldiers,govt. debt etc etc.
i’m not saying ZCCM was perfect but it had the best technical resource money could buy!!! Blame ZPA,FTJ and the rest of those incompetent politicians and institutions that killed ZCCM and jeopardised the mining future of Zambia.We were sold out!!
#13, we lack any meaningful performance management. Just look at the national budget, every yr Magande walks up with his little copper briefcase & presents nothing but hot air. Following yr, you discover that certain Govt depts grossly overspent while certain projects actually never took off and money is lying idle. Hence, Ministers can get away with such big pronouncements because no one (incl Levy) will appraise them on those figures.
performance mgt with respect to national budgets is the domain of technocrats in the budget office scrutinized by a parliamentary select committee.only in the last decade have you MP’s who can even spell the word performance!!the elected reps of the people approve and are supposed to monitor the budget…where does LPM come in here Bali(16)?? Ministers don’t spend budgetary allocations they formulate & guide govt policy.if you want to highlight perfomance start with those charged with its responsibility!!
now that you have clued up MP’s you now have an enpowered AG and a select committee that flexes its muscles.Our responsibility as citizens is not to elect sweet talking posa mabwes to Manda Hill or Plot 1.Its time for an economic manager in Plot 1 who will from the top, drive fiscal discipline and encourage innovation.Kaunda gave us independence,FTJ taught us private enterprise,LPM introduced accountability,the next guy must take all that has been achieved and translate it into tangible development!
#18 LPM’s accounability remains to be seen and so far things are not looking good under his leadership. Personally I think Presidents should be like Project Managers.
that is meant read **accountability**
Trust Mutati and Levy at your own peril. These guys are high level fraudsters.
Mr Pundit #17, you articulate issues well but I beg to differ. No one will argue that it’s the PS & technocrats’ responsibility to deliver govt policy driven by cabinet, but who’s the appointing authority? Levy right? so if Levy says he’d like to see 10 schools built in 2009 and Magande’s boys budget for this, come 2010 and the project is still idle, are u sayin Levy & his Ministers simply fold their arms in despair? Cmon, comrade, the buck stops @ big Levy, if the PS’s 4rm the respective ministries can’t efficiently deliver the projects, then they shud get the boot!(4rm Levy ofcourse) so I can’t appreciate your point about big ChuChu not having anything to do with perf mgt…?
Bali#22,your comment has merit but imagine what LPM has had to do just to achieve $1.1bn in reserves,the highest ever in our history!!he has had to preside over a CHANGE in work culture and ethic,introduce benchmarking and strengthen institutions of govt to make possible performance mgt.On top of all this use the existing people to right the wrongs of the last regime!!LPM has made his mistakes,achieved successes but his time is up and its time for a new perspective and renewed vigour to continue…an econonmic manager in my view!