Minister of Finance Margaret Mwanakatwe says government is being bullish with the mining sector because it wants the sector to contribute more to Zambia’s Gross Domestic Product (GDP).
Speaking during the Africa CEO Forum organized in conjunction with the Swiss Government in Lusaka, Mrs. Mwanakatwe says this is why government is encouraging new investments in the mining sector.
She says there is still great potential in Zambia’s mining sector, but that government wants to see more value addition to the Country’s mineral resource.
Mrs Mwanakatwe states that to this effect, she has in the 2019 national budget reduced Corporate Tax from 35 percent to 15 percent for mining firms that venture into value addition.
And Medland Health Services Chief Executive Officer Mohamed El Sahili has wondered why Zambia cannot in future host the Africa CEO Forum.
Dr. Sahili says the fact that Zambia is open for business and investment, it should lead by example in sharing its experiences, failures, challenges and opportunities at the continental level.
He states that Medland Health Services Group believes Zambia is the economic hub for the region.
Well said Madame Minister.
I’m a mining engineer with 45 years experience around the globe, including 18 years in Zambia. Investment conditions, and concomitant taxation, vary greatly. Considering the:
Resources
Infrastructure
Skilled workforce, and
Liberal immigration regulations
Present in Zambia.
I’m convinced that the latest budget measures will redress the balance in favour of Zambia.
PLEASE DO NOT RENEGE ON THESE MEASURES!!!
It maybe that we are missing the point here. It doesn’t matter how much revenue we are able to extract from the various sectors if we waste said collected revenues in non income generating ventures and exploits such as Bi elections, international trips, non commercial roads, emoluments for non income generating activities, like salaries for a bloated civil service that spends time politicking instead of doing actual regulatory work. If the wasted expenditure patterns are not addressed we will continue to have ever diminishing returns.
Without real spending in sectors that will empower the people financially, we are just creating a ripe environment where empowered vultures coming with resources can pick and choose at the table whilst the indigenous Zambian waits for scraps falling from the table like the 20% of road contracts. Why cant we empower Zambian companies to make the roads and give the foreign companies the 10% in the form or technical supervision.
Good points. Tax revenue alone is not enough. We have to look further and find ways of sustaining our mining industry for the future generations.
We need to invest in technical know-how, refining/manufacturing industries and create infrastructure to enable us retain full management over our mines. That way, we will be able to retain our sovereignity and at the same time master the various challenges in the sector without relying on foreign investment.
Last month they were reading speeches about diversifying the economy …now they are broke they are singing another song!!