Former Finance Minister, Dr Situmbeko Musokotwane has maintained that Government will not reverse its decision to privatize the mining sector.
Dr. Musokotwane who is also MMD chairman for Finance says the nationalisation of mining companies resulted in poor management of the mines thereby reducing the value of mines.
Dr. Musokotwane also says that pressure to force government to impose higher taxes on mining companies such as windfall taxes is unrealistic.
He says the law guiding the mining sector in Zambia is similar to the one obtaining in countries like Canada, Australia, and South Africa.
Dr Musokotwane says it is wrong to demand that Zambia should have a special tax which is not applicable to other mineral-producing countries.
He says the windfall tax being agitated for, will make Zambia less attractive to foreign investors and lead to massive job losses.
Dr. Musokotwane says mining companies have stabilized and are now able to pay more taxes that have helped Government raise more money for various development projects.
He was speaking on a BBC TV debate on whether mining benefits the African continent.
And Former British Secretary of State for International Development who is also Chairperson of the Extractive Industries Transparency, Claire Short says Africa’s Wealth has become a curse instead of being a tool for poverty reduction.
But Dr. Musokotwane has opposed the view saying minerals have done a lot for Zambia by creating jobs while money from taxes is being used for improving the lives of people through poverty reduction.
ZNBC
and we are voting for you so just relax.
Questions: Why do the mines only contribute 2% revenue to the economy but account for only 70% of exports? Why do the miners on low income jobs pay more tax to the revenue of the country than the mines that employ them? The countries like South Africa, Australia and Canada have diversified economies. They do not depend on copper as their main exports. Why don’t we follow Chile who is utilising their copper for the development of their country. What excuse will Dr Musokotwane give Zambia when the cooper boom goes..is it going to be 1% revenue Zambia will get? Privatisation is okay but taxes need to be felt in the revenue of the country. OR the govement also needs some prominent shares in these mines.
Minister do not worry…..nafuti nafuti. Lets develop our country for get about the F.O.O.LS
We are voting for continued development
how come this Lozi is saying that Mines have done alot for Zambia when we all see that the mines in Zambia just contribute very little. you wander wether he is using Kidneys to reson. shame.a white mand is saying we dont benefit as we are supposed to but he is saying what we get is enough. ichilipala ata. iused to think he knows what he is doing but not any more rubish
#3 This is not about elections. I am an independent who is querying about accountability and social responsibility of the mines in Zambia. Whoever is elected in office God bless them just be transparent with Z’s wealth. As a fiscal conservative person I know a house has to have a budget. One knows how much revenue you get and how you buy things to run a home. Z’s revenue on mines is so unclear that when copper prices soar a local Zambian can’t even smile because there is no benefit? In addition, one can’t see the light at the end of the tunnel when Zambia will benefit as copper prices flactuate. What mechanism is the honorable minister basing his policies for witholding the windfall tax ? What plan has he got to make sure Zambia benefits from copper booms in the near future
All of Xambias wealth has been morgaged by MMD. For our vast wealth they are showing us shopping malls and empty of equipment hospitals as development. 99% of the jobs he talks about are unskilled while our graduates linger the streets forced to be conmen. We are seeing unpresidented numbers of expats. MMd only think of personal enrichment, not long term enrichment of our country. We welcom the date of you depature MMD.
there is need to set up an indepedent comission to expedite the issue of taxation on the mines! ZRA generally needs to restrategise on the taxation systems, there is alot of tax invasion in zambia.
the most unfortunate thing is the miss appropriation, embesslement of the little collected revenue. All i’m saying is new government should holisticaly deal with ZRA effectiveness if zambia is to see any meaningful development! P.A.Y.E seemz to be the only effective system!
Why is he always referring to Australia, Canada and South Africa? What about Botswana and Namibia, they are near and they are doing better than Zambia. These guys have no idea about the importance of government having shares in the mining companies, that’s why they are selling the little shares.
2 Protocol,
” is it going to be 1% revenue Zambia will get? Privatisation is okay but taxes need to be felt in the revenue of the country. OR the govement also needs some prominent shares in these mines. ”
They already do, through ZCCM-IH, which is now a holding company for shares in local mines. But dr. Musokotwane, when he was a non-executive director at ZCCM-IH, refused to demand that they actually pay dividends to ZCCM-IH. So he doesn’t want the foreign mining companies to pay taxes to the ZRA, or share profits with their shareholders.
He is bought and paid for.
the reason Zambians have nothing and less jobs in their own country,is government supports foreigners not Zambians and they will rig the electionts again. Zambia is a mining country we need to get 100% from our chief export but mmd just want to feed their families wake up brothers PF maybe extreme but it knows what the average zambian want.revolution!
hon muso,please think like a matured person and stop these fake comparizons. How do u compare with countries who do not depend on kopa, leave our kopa in the soil if miners are failing to pay taxes. and also allow us do the iligal mining since all companies are nt folowing the law-there is no legal mining in zambia.
We all know that Musokotwane is a thug and a member of the plunderers’ gang.
I think that there is a great misunderstanding of the relationship between privatisation of the mines and poor management. I cannot believe that this man used to mark my assignments; when he cannot seperate the two issues. You can have poor management regardless of the ownership structure. The failure of the Zambian management during ZCCM should not be casually linked to state ownership. The failings were actually as a result of inadequate governance structures. The state and the mines were too interlinked; so that ZCCM was unable to focus on its core objectives. In addition to this, the copper prices were depressed for many decades, leading to very low profitability levels and resultant low reinvestment. State ownership works – as long as you have competent and independent management.
Privatise ZISC, ZNBS, DAILYMAIL,TIMES, DBZ,NAC
#9 MrK wow that is amazing. How does the financial minister expect the wealth to trickle down to Zambians… if Zambia as shareholders can’t benefit from the shares they own during a copper boom season. Do you by any chance know what the share figures the goverment actually owns? Privatisation is okay but the govt has to find a way for the Zambian local people to be financially linked to it. For example, goverment Investment plans and pension schemes for Zambian workers should be tied to the mineral wealth and future oil deals. Something similiar to the 401K offered to workers in the States. In the long term this would give the goverment tax revenue and create so much wealth amongst Zambian workers like doctors, miners, teachers when foreign direct investments are making profit.
These sleepy chaps in government listen too much to investors’ advisers; how will these miners not invest in Zambia when Copper is a valuable and very versatile mineral used in electronics, construction and by the arms industry. These so called investors are making a killing from our ignorance, why is it that Venezuela with its socialist policies still has miners flocking there or how is it that Brazil is benefiting greatly from this.
@4 Chimpuno. You are a very primitive person. Learn to criticise people without reference to Ethnicity, Race or Gender. Seems the major issue you have against Musokotwane is his ethnicity. How backward of you! Shame!
#9 MrK Please desist from making up your own stories as you go on repackaging your failed and redundant socialism. You must also be a Board member of ZCCM Investment holdings to be in a position to know that Musokotwane ‘refused to demand that they pay dividends to ZCCM IH. So he doesnt want the foreign mining companies to pay taxes to ZRA or share profits with the shareholders”. Honestly, there is no sane person who can take this heap of nonsense seriously! Isnt this the same Musokotwane who is at loggerheads with FQM over the owing $224m in taxes? If he didnt want them to pay taxes why would he be demanding that FQM pay up the owing taxes? Are you PF in disguise? I would like to appeal to cadres of all political parties to raise the level of analysis. It is too shallow!
#18 This is a good debate. It is important people understand how Zambia’s revenue is accumulated especially in a copper boom season. Can you expand on how the goverment share and mine tax system works. The methods of taxation and shares literature is very difficult to find and understand.
No 4 desist from making tribal comments.It is uncalled for and unacceptable.The debate should be issue based.One Zambia one nation.