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Wednesday, August 12, 2020

Finance Minister Situmbeko Musokotwane on CNBC Africa

Economy Finance Minister Situmbeko Musokotwane on CNBC Africa

Zambia’s Finance and National Planning Minister Dr Situmbeko Musokotwane was recently in South Africa and was interviewed by CNBC Africa’s Fenly Foxen about some of the challenges Zambia face in growing the economy, ahead of the visit by a powerful delegation from IMF. Dr. Musokotwane discussed a  number of issues about the economy including the issues of windfall taxes on the mining company. Below is the video clip of the full interview on youtube.

32 COMMENTS

  1. The man is quite articulate and seems to know what he is doing. Lets hope there is the political will to follow through. As was said during the Clinton years, “It’s about the economy stupid!” At the end of the day it’s about meeting the essential needs of the populace and finding an equitable means of spreading the wealth generated from economic growth.It is also about setting a clear path and vision to aspire for among many things. May God grant the leadership the necessary wisdom to move the nation forward and may he raise men and women who are honest, hard working and filled with integrity and love for the country.

  2. What a BS artist. The mines barely pay any tax at all. Income tax is the least collectable tax, because companies can find a hundred ways to hide profits. Somehow, the finance minister neglected to add that. In 2004, foreign mines in Zambia exported $4 billion in copper, cobalt and gemstones, of which $2.4 billion was pure profit. They paid $6 million in taxes.

    Today, after a lot of pressure from the public, and much resistance from the government, they pay $90 million in taxes, and make a lot more profit because the price of copper is over $7,000 per tonne.

    They, including minister Musokotwane, are bought and paid for. Between these MMD politicians and the mines, the they are ripping off the Zambian people.

  3. At least you are a bit exposed than making news only on ZNBC or airport touch down.
    Only known pa Zed President included yaba.

  4. #4 I am not sure what you mean by being articulate. The man can not even explain windfall tax in simple terms. We want more money to be collected from these mines so it can be invested in developing roads in Chimwemwe and other townships. The last time the roads were graded in Chimwemwe was in the 1970s!!. imagine, how pathetic is that. I am talking about grading, not tarring the roads. Yet our president is galavanting all over the globe spending our f.ucking money. Come on people. No one from this current regime is impressive for me.

  5. The guy is inept, unconvincing and downright poor at speech, leaves much to desire; his points are inarticulate.

  6. I have just wasted my 8 minutes listening to this rumbling minister who could not explain the windfall tax and the taxes that the mines pay. How can a minister assume that the investors will complain about how much they are paying in taxes? What government? He spoke about about economy growing 6% but no one have seen anything to that effect. How can one say the economy grew 6% when the poverty levels grew more than 20%? Please.

  7. You seem to be worried about investors, how about the poor Zambian? Are a spokes person for inverstors? You stance as a finance minister is not Zambian

  8. I think the guy spoke well. you bloggers just like criticizing anyone in govt even when they speak well.It was good to hear someone NOT talk politics.

  9. Mr Musokotwane, you can spend all day with your boring text book economics jargon and achieve zero. What matters and makes sense to hungry and struggling Zambian families is to have affordable and decent meals on their tables. Your globe trotting adventures are just to satisfy your wining and dining lusts at the expense of the poor.

  10. Word to the wise, if you are going to criticise personalities, then do some research, find out the credentials of the person you intend to put down. He might seem s.t.u.p.i.d to you because you are too thick to understand.

    Not everyone is a good public speaker, but that is not a sign of being inept.

    If the most intelligent Italian man failed to articulate in english because its not his first language would you call him dull? Who is dull now? Give credit where its due and stop hating.

    If you are gonna hate, hate the game, not the player. Dont hate, appreciate.

  11. Most of you bloggers are rabbid anti RB fanatics. Just face facts Zambia is improving. Yes not every person will have a solid meal a day, not every person will aford school fees, but we are moving forward. As a clue, go to the zambian embassy were ever you are and witness the max exodus of most pipo with ties to Zambia.. Do you think they would be leaving a good life for problems ?. Just face up to it, RB even though he is associated with corrupt pipo, he is not doing bad. You can rant and rave till you are gray, pipop are minting in Zambia. Me too am packing my bags and will be back in 2 months time. Why should foringers be getting rich in my country while i remain just a clogg in this white mans land. Do not get me wrong, i class my self middle class, with a weekly 4 figure takehome.

  12. #15 kc, We are free to air our views and they don’t have to be similar to yours and we don’t deserve to be called ‘rabbid’, whatever this means, may be you couldn’t spell rabid.
    You claim ‘RB is not doing bad and Zambia is improving’. The majority of Zambians have yet to see the ‘improvement’. RB is a tired old man dragged into office for selfish reasons, to appease the easterners. He has no energy and ideas to meet 21st century challenges. I don’t hate him, I feel sorry for him and his numerous beneficiaries who think he is doing well.

  13. # 17 Nom de Plume Dot Com
    You must be from the northen part of zambia. Why are pipo who come from the north the most critical of RBs GRZ ? even if facts and figures are produced, they still site hunger. Even in the USA there is hunger. could it be to do with tribalistic tendencies compounded with the fact that they are the majority hence think they should rule ?. If not so can you dispute, with proper facts and figures , not insults, the improving GDP figures and improving standard of living of Zambians generally ?

  14. Rabid hatred, that is the word. No sensible comment, cannot recognise progress even if it is thrust under their very noses – just raw, blind, rabid hatred.

  15. Kalos2020,

    ” How can one say the economy grew 6% when the poverty levels grew more than 20%? Please. ”

    That is because if you’re the MMD, real people don’t matter. Only foreign mining companies matter. And if they steal more of our copper, GDP goes up – presto, ‘economic growth’. Also, the minister is narcissistic (which is a compensatory reflex for extreme embarassment), and looks down on anyone who isn’t ‘professional people’.

    The truth is that the MMD has been selling out Zambia’s resources to the lowest bidder for personal gain, and has managed to make the county not benefit from the largest boom in copper prices in living memory.

    And he can try and hide that fact with neoliberal jargon and grade school economics, however there it is.

  16. Nom de Plume Dot Com,

    ” Mr Musokotwane, you can spend all day with your boring text book economics jargon and achieve zero. What matters and makes sense to hungry and struggling Zambian families is to have affordable and decent meals on their tables. ”

    They are trying to convince us that capital investment in the mines is just as good as diversification of the economy today. Which is garbage. We have to invest in agriculture and manufacturing now, when copper prices are high. No one can know what prices are going to be 10 years from now.

    Another problem is that it is much easier for the MMD to beg and borrow, than it is to tax the powerful mining industry. Another reason why they should not be in foreign hands.

  17. Another problem is that it is much easier for the MMD to beg and borrow, than it is to tax the powerful mining industry. Another reason why they should not be in foreign hands.

  18. #3 has broken down the statistics in terms of the advantage of w/fall tax. Some bloggers call a blogger who realistically looks at the implications on the Zambian society a hater. How can you develop as a country if you call constructive criticism hate. If you own a shop have bills to pay and are selling your goods. The earnings does not cover electricity, water, rent etc Would you call your accountant a hater if he advises you that your business will become bankrupt… unless you increase your price of goods? To develop the roads or railway for the mines, electricity used by the mines etc they need to cover those unseen cost through tax. The worst you can do is get a loan when all you need to do is raise your price of bread. W/tax is based on the profit they get.

  19. The speech does not convince me on that corporate tax method is the best. Can you trust a company to tell you their cost when they have come to make a profit. Business is Business Zambia needs to go back to basics. It is important the local people enjoy that growth in the economy. Even a person whom is uneducated knows if they are selling tomatoes in a market…they should get enough money to pay for the seeds to plant more. Are they good business people if they go begging for seed and get a high interest loan by selling their tomatoe at a give away price. No …because someone once said “Never stand begging for what you have the power to earn.”

  20. 25 Windfall tax vs high copper prices,

    ” The speech does not convince me on that corporate tax method is the best. Can you trust a company to tell you their cost when they have come to make a profit. ”

    There is one way to tax these mines – scrap all their taxes instead of the royalties tax (tax on turnover) and raise it from 3% to 20%.

    You can easily monitor how many loads of ore they produce – tax one 1 out of 5 and you capture around 50% of their profits at the present prices. If they won’t pay, confiscate the loads of ore if necessary. It would be very easy to monitor and collect.

    PS, I make spelling errors all the time. This is the internet, and there is no time to proofread every comment. 🙂 Cheers.

  21. if you doesn’t want windfalls taxes you must to ask to receive dividends for ZCCM-IH !

    It is incredible that ZCCM-IH received only 20 M US$ dividends last four years while in the same time the mines earns more 2 billions US$ !

    The FQM’s boss answered to a question in the last conference call of FQM ” ZCCM-IH never asked dividends”..

    Why ZCCM-Ih is silent about this situation ?

  22. Hi Philip,

    I completely sympathize with you. However, even dividends are based on profit, usually 50% of profits (although it varies per company). So if they can understate their profits, they can automatically reduce their dividend payouts.

    What Zambia needs is a) an honest government that will act in the interest of the people and no one else and b) a clear and easy way to monitor and collect taxes.

    Loads of ore leaving the mines are easily monitored and if necessary confiscated in case of non-payment of taxes.

    If Zambia had collected 1.2 billion a year in taxes since 2004, that’s $7.2 billion. Imagine what could have been done with that money. Farm blocks could have been upgraded, factories could have been created, roads built, we’re talking about creating millions of…

  23. This interview shows why Zambia will never develop with leaders like Musokotwane. On job creation, for example, how can a Minister of Finance not cite some of the policies put in place to boost the creation of jobs — such as lower VAT, lower PAYE, lower interest rates, etc.? All I hear him say is the need for the IMF to provide development funding. But there is money to pay K5 billion to Lusaka-based NCC members, provide K2.7 billion to Zimbabwe, secure a US$53 million loan from China to buy mobile hospitals, …

  24. #3 #24 and 25, #29 and #30. I AGREE Well said, it is very important to explain the fact, criticize and provid a solution. The minister is straight away running to borrow when it is the govt which has not made the right choice of adequately taxing the mining companies. Even the taxes earned go straight to funding political activities like the NCC, MMD travel, paying lawyer ridiculous sums of money. Our priorities are somewhat off, we are ready to spend money on politics but when it comes to development we have to run to IMF and world bank, how long will this last? And the sad part is that we don’t even want to try to be self reliant. we are going to 50 years of independence but we still can’t stand on our feet, with all due respect Honorable minister you are failing us. :-?:-?

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