FQM copper heading to market

Rating agency Fitch says the uncertainty surrounding Zambia’s IMF programme and the recent First Quantum tax bill show key challenges facing Zambia.

In a note, Fitch says dispute over tax bill presented to First Quantum Minerals Ltd could discourage foreign investors.

Fitch reiterates that an IMF Programme would support fiscal adjustment and make additional sources of long-term external financing available to Zambia.

It says the IMF uncertainty show key Zambia rating weaknesses of weak public finances and high commodity dependence.

Fitch notes that how the dispute related to First Quantum is eventually resolved may have an impact on Zambia’s investment climate.

The rating agency thinks the Zambian Revenue Authority will apply penalties and interest at a lower level to First Quantum than initially assessed.

It said it does not think the Zambian Government will seek to avoid jeopardizing its key foreign exchange earning industry and a major source of employment.

The rating agency noted that Zambia’s other sovereign rating weaknesses include poor power provision and transport infrastructure to Zambia’s Copperbelt.

[Read 83 times, 1 reads today]
Loading...

12 COMMENTS

  1. The tax bill smells a strong ingredient of politics at the least but also highlights the levels of ignorance within the tax authority. To begin with, the figures do not make sense at all. The tax bill almost equals the revenue for the same period if not greater. Second, the claim comes after ZCCM-IH just lost another court case against FQM. The two above show that the people behind all this are doing it for political gain or sabotage. It smells like someone against ECL, the Head of State, someone who is eager to see government collapse.

    If I were the President, I would order an audit into all this accusation and anyone found wanting would exit very quickly. The tax authorities should have known that the figures do not make sense and that they are a deliberate agenda to collapse…

    5

    4
  2. What do you expect from chipantepante economics from these kaponyas? All they understand is violence, corruption, taxes, locking up those with divergent views, political hooliganism, incompetence the list is endless. Anything that makes sense is diametrically opposed to their posture. Wanton disregard of the rule of law is their medicine. It will take another ten years to reverse this maladministration of medieval proportions as the economy is not only in sheer doldrums but in the abyss of dysfunction.

    4

    4
  3. The problem is that our economic manager has since forgotten his economics theory the moment he graduated into tribal politics. Now he has gone further to pronounce hatred of easterners. How could he be an alternative leader of Zambia, one who doesn’t speak economics anymore but petty politics of hatred and tribalism?
    And he has become worse since Patricia insisted that dialogue shall be led by Zambians.

    2

    0
    • upnd cadre: How does HH come into this ZRA matter and where is his hatred for easterners? He has one Jere as MP for Livingstone whereas no Tonga has ever been adopted as a parliamentary candidate in Eastern province ever since the advent of competitive politics in 1991. Show me one Tonga or any other person from Lusaka, Central , Copperbelt, Western and N-W provinces serving as district commissioner in eastern province but ECL has no problem appointing easterners as DCs in Southern Province, Lusaka province etc and he still shouts “one Zambia one nation”. There is a clear pattern here and it is tribal.

      3

      0
  4. It’s quite clear ZRA is under wrong leadership. Why announce publicly a tax matter that the other side disputes when you have a declared policy of keeping all tax affairs confidential? This business of appointing custom officers as heads of ZRA ought to end. Certified accountants should be the priority in my opinion.

    1

    1
  5. This country is in very wrong hands. Our president doesn’t inspire confidence, it is shameful how policies are formulated and implemented. On top of that there is interference from the execu in the way independent institutions are suppose to operate.Why would someone start commenting on a case which is in court?(ZCCM-IH & FQM).

    0

    3

Comments are closed.