For Zambia to attract new foreign investors and promote existing investments in the mining sector, the country must have a competitive and stable tax regime, the nation’s largest taxpayer, First Quantum Minerals, has said.
Speaking at the 9th Zambia International Mining and Energy Conference and Exhibition in Lusaka, FQM Head of Government Affairs John Gladston said government and the private sector should seek to create a framework in which a modern, progressive, developing commodity-based economy can be built, a scenario where investors vie to invest in Zambia.
Mr. Gladston noted that Zambia is hugely rich in natural resources and deserve to benefit from those resources which can be done by attracting foreign direct investment.
He noted that with the right tax regime, FDI will come, but Zambia must compete against other jurisdictions.
Mr. Gladston was speaking during a panel discussion on “establishing mutually beneficial fiscal regimes” at the industry conference, which was held under the theme “Creating an attractive investment framework to catalyse Zambia’s mining and energy sectors”.
He said that Zambia’s current mining tax regime poses a range of difficulties to the sector making it unattractive to potential investors when put alongside other copper mining countries.
Mr. Gladston said Zambian miners this year face the highest copper mining tax regime globally which may well challenge economic viability of some of Zambia’s existing mining operations.
Speaking at the same event, Minister of Mines and Mineral Development Richard Musukwa said mining is key to achieving economic diversification through enhanced local content.
Taxes paid by First Quantum Minerals in Zambia now amount to more than US$3.85 billion, plus investment in community development projects of US$100 million, delivering tangible social improvement to thousands of Zambians.
To expect that FDI can drive the wheels of development is just wishful thinking. How many foreign companies are operating in Britain, Germany, France, Switzerland, etc? Our copper built the UK, and now India. Since 1921 Zambia has been producing copper everyday, but what’s there to show for 100yrs of mining? In Wusakili they are still using communal toilets with sporadic water supply. Can you compare London or Switzerland to Lusaka? Just get our minerals and shut up, we don’t have the wisdom to exploit our own resources
That stable tax regime is certainly not VAT for the mines because they have BADLY abused it thru VAT REFUNDS
Man, who are you telling to shut up? Mr. Gladston has put it in simple terms and language, that Zambians are dund.erheads and egoists. After 100 yrs of mining, we have failed as a country to put in the legal framework that would have enabled us to build a modern, progressive, developing and commodity-based economy. We have failed to be competitive. Although we support the GRZ with recent tax placed on the mining industry, that doesn’t make that sector attractive for more investments. Who is to blame? Mr. Gladston and Company?Our GRZ? Our education institution for not producing capable managers and engineers? Our own cr.ooks who team up with these foreign companies for their own pockets? Do you blame Brenthurst? Ultimately, we Zambians are to blame.
Ayatollah – Are you never tired of making that colonial rehteric all the time…as Mo Ibrahim the Mobile Tech Billionaire once said the difference between Zurich and Liliongwe is good governance and leadership…Zambia has neither. Our leaders are not prudent, reckless, corrupt …just look at how that lazy man has mishandled a simple issue as KCM after being in bed with them all this time.
*….rhetoric…
We do have investors already them inclusive and what we need from them is to pay correct taxes. if he feels they are not right investors let them pack and create room for others to come. The song of FDI must end.
Why did the British colonize us? Was it for good governance or to exploit our resources? Why have the Chinese lent Edgar more than we can pay back? Do you they love him? Soon even mutototo will come from China. You’re too young to know what happened to Kalengwa mine and how KK differed with Kapwepwe. Go to the old mine shafts and see their names then come I explain what they mean
Ayatollah – You are just hallucinating asking yourself rhetorical questions…but I know from your previous posts your answer is clouded in some flawed misinformed analysis….busy spewing nonsense like chronic diarrhea without putting across a valid argument.
For those of you who don’t know the language of the capitalist here is a simplification:
In that headline above he is saying Zambia needs a cheap and never changing tax regime to attract exploiters
Zambia should have three tax systems. VAT for companies like Trade Kings who are adding value and creating jobs and extraction tax for the mines which will be based on how much they produce while a sales tax will cover the rest of the economy
To paraphrase, Gladstone is saying that he wants to screw us more. He doesn’t like the fact that we can have a win-win initiative by asking for more of our own money to remain in Zambia.
For more investors to come, we need the ability to double or even triple our return on investment while you the owners of these resources remain poor, he’s saying in his mind in other words.
We can’t get rich enough like this, if we pay more taxes, we ain’t screwing you enough … you get the grip???
That’s why the only best investors needed are actually the smart people of the Zambian Enterprise themselves and until we take ownership someone else will continue to insult our intelligence.
Nobody will develop Zambia other than Zambians themselves, others can just but help.
Epo…
B R Mumba that’s exactly my point of view too.
@Nine Chale … Yes, Sir!!! You got that right.
Epo mpelele,
BRM
1.10 Now u can roll u v KCM in ur hands pls dont give it to an investor let the GRZ enterprise run u have all the expertise to manage it jst roll.
Lecturing us for our assets. Why?
Because politicians do deals for us. We did not need a politician making decisions on our mines outside the perimeters of economic technocrats of course not the one who was engaged during sell of our assets.
We need not have politicians appointing CEOs for parastatals.
We need not have faith that foreigners will turn the fortunes of this country around for us. That is being dull.
We need not have characters siding with infestors like one crook masquerading as a politician.
We need Local Direct Investors opposed to foreign direct investment. Who coined the term foreign direct investment for us to fall in love with?
B R Mumba, SR.
Yes these beings have been screwing us free of charge for a long time now. Screwing and tightening, screwing and tightening all over again.
I wish we could put our paws on the ball.
@Ba Pharaoh … Axiomatic, but no more!!! Our time is now.
You’re the best, Sancho.
@Sakala … yes, sir we can roll now. And we are not going to let GRZ bring in anybody else to run KCM when we have all it takes to get things done.
Tweende, Sakala … tweende mbuya!!
Let’s roll!!! Ala walasa … epo mpelele,
BRM
What a boring month…
all these fuuucking KCM and taxes , won’t help the poor.
When are by-elections in Katuba so people can get some free bicycles, chitenge and T-shirts, all free. That’s exciting than these blarry investors.
The West did not develop from taxing their populations or favoring outsiders to come and help them out. They captured the production and manufacturing process wherever they found it. Now we are being made to believe that if you relax your tax regime but allow the investor to come with his entire fleet of both unskilled and skilled labor, machinery (only to extract) and logistics outfit (sourced from where they come from) to transport the raw material then you will develop. Nizanu izo if you listen to such horse droppings.
‘Taxes paid by First Quantum Minerals in Zambia now amount to more than US$3.85 billion, plus investment in community development projects of US$100 million, delivering tangible social improvement to thousands of Zambians.’
As they tell the world how much taxes have been paid and community projects done to Zambia,I will very happy happy if they could tell the world how much they have raked in as profits after taxation.
They have stated Zambia is their cashcow its no surprise they are using revenue to develop DRC mines…what happened to that case that was before the courts that ZCCM was suing FQM immediately Kasolo was sacked the court cases disappeared like a fart as this moron at State is unconcerned ho much money leaves the country. I am sure he has sold off our shareholdiing in NW mines as Aunty Maggie Dizzy stated that they were considering it.
Chile has a stable tax environment and with VAT. Chile produces 8 times the amount of copper Zambia does and has developed tremendously through copper.
FQML are just telling the truth. Furthermore if indeed FDI cannot develop a country why is China the largest FDI destination in the world ?
Zambia needs to wake up and smell the coffee
Why did the British colonize us? Was it for good governance or to exploit our resources? Why have the Chinese lent Edgar more than we can pay back? Do you they love him? Soon even mutototo will come from China. You’re too young to know what happened to Kalengwa mine and how KK differed with Kapwepwe. Go to the old mine shafts and see their names then come I explain what they mean
@ 5 Ayatolla,Pliz tell us instead of asking us! Since you know the history,pliz share it,educate and inform us!!
The only thing that Zambia needs is an ambitious citizenry and a deteremined leadership that can empower them to rule their destiny. We can learn from Botswana’s example cited in an article here a few days ago: of a deal which ensured that all it’s mined diamonds are processed and marketed in Gaberone.
Gone are the times when we should be lectured by foreigners about how to rule our destiny. Let’s close all the mines if e must to save the rest of the resources we still own for future generations or stock pile it until we are able to market it ourselves the way Botswana and South Africa does.
Stop sitting on the fence and call a spade a spade….Tswanans were cattlehelders two decades ago before the discovered diamonds but guess what? They got the fundamentals right, that good governance and good leadership these are the foundations of success…that’s why they can decriminalize Gay rights as they know it has no effect on them and they have more important issues to tackle. Meanwhile in Zambia we have a people who happy to amend laws via a non representative body like NDF…passing all kinds of irrelevant proposals to present to a Ruling Party majority Parliament.Even selling gemstones in Zambia has been a challenge for these crooks this is what Sata wanted as we had control on what was being sold and at the same time promote the country…but since this lazy man took office…
Let them tell us like agarwal how much
Money they externalised.The only country
Where they can make quick money.
I think the chap’s confused. He thinks being FQM Head of Government Affairs means he has a Zambian government function. The citizens of Zambia have mandated our government to get a bigger share of our resources. As it is a hideous and shameful greedy culture exists through the mining conglomerates who want to get greater profits out of our economy.
We are not in the business of pumping our resources income into Western economies any longer. Mutual benefits, how do you come up with that? Every mining country is different and taxes must meet the need of the country. Zambia needs to simplify the investor sector. More China and less Western Europeans with their colonialist mentality. We don’t want to enter into a western controlled tax system. Thanks but no thanks.
Everyday it seems less and less people know that governance
structures affects economic growth. Party loyalty has blinded a lot of people. It is sad that Zambians in the diaspora who we expect to know better, are clueless. I challenge you here and now, if the policies the current govt is making are stimulating economic growth then come back home so that we grow the nation together.
Zambia is not the only mining country in Africa. We need to ask ourselves why other countries Namibia, Botswana and Morocco have the entire population benefiting from the mining sector than countries like Zambia, Congo, Angola, Niger, Zimbabwe, Guinea, and Sierra Leone.
The day we start being objective is when our country will see economic growth it hasn’t seen before.
Challenge who? Really laughable..Here we go again with that tired “people in diaspora” song every year someone has to sing it who has just discovered internet…what makes you think we are not developing the country together…you want us to come and sit together on your red polished verandah drinking chibuku talking about nothing till the chickens come in?
@Jay Jay. You know I have lots of respect for you because like me your loyalty lies with ideals. Tell me I’m wrong. The challenge wasn’t for you.
The reason I challenge you in the diaspora to come back home is;
Our country doesn’t have a diaspora strategy that can our country with building economic progress.
Without quantifiable facts, the contributions you making are only benefiting immediate your family and maybe friends (if you have any). Just because you send some money every now and then doesn’t mean you are making an impact on economic development of the common man and woman.
Diaspora contribution if it’s there should show impact. A great number of individuals who are in the diaspora offer nothing but loyalty to political parties, I don’t need to name names.
All I’m…
cont’d
All I’m saying is our country deserves better than that which is currently going on.
There are two filthy uncircumcised cretins missing on this blog. Where is Mr Kudos & terrible? Plz LT, block those retards for good.
You are worse than the people you mentioned, and do you know why? You can not categorize people based on if they were circumcised or not. Same dirty, as being tri.bal, but you have taken it to another level.
Shame on you.
Why is it that every time government makes a review of its mining tax policy it always turns out to be the highest in the world. Does it mean government makes these changes without conducting any research let alone consultations to determine the levels of competitiveness with other countries? Why should Zambia’s regime always be problematic? Very mind boggling!
Stable tax regime is a good advice and it will be a win win. There will be investor confidence and more genuine investors will inject money in our economy. The only problem at the moment the change in the tax regime is just to compensate for a deficit in the budget.This has been exacerbated due to huge borrowing ,no accountability, corruption , some indiscipline government officials and failure to involve universities /consultations. KK had a good cabinet and most of them people were scared of him.I remember all the clean up. Buy something if you can afford and not if you can steal or commit a fraud so as to buy.Stamp out corruption!
@JUNTA NDC. You’re right. The only reason govt is introducing Sales tax is because they think they have been losing money through tax refunds.
Prudent fiscal policy competent management best practices and good governance matter. Norway, Malaysia and Nigeria discovered oil around the same time 1960. 60 years later compare what the three countries have achieved with this mineral wealth.
@Ayatollah
For your information the British handed over £900million approximately £1bn in reserves to KK at independence. Zambia exported just one item copper and made all this money. Zambia was richer than Taiwan and most of these countries in the world and was able to provide Botswana with budget support in 1966.
Life in Zambia at that time was better than the UK or the USA. As an example,Godiffery Chitalu played for Manchester United just for a few months and returned to Kabwe warriors because he made more money in Zambia. Zambia was on a very firm path to prosperity. So what was your point? Now the question you need to find out for yourself is how this money and the good life disappeared?
Auntie Maggy dizzy? Iwe Gay Jay, bu trib.al wacilamo.