The Zambian mining fiscal regime has not been consistently applied over time-CTPD

Zambia has made some strides in aligning its Mining policy to the Africa Mining Vision, says the Center for Trade Policy and Development.

According to a detailed gap analysis conducted by the CTPD of the Africa Mining Vision, more energy however needs to be channelled to fully domesticate the AMV at the Country level.

Webby Banda, the CTPD Senior Researcher Extractives says under Fiscal regime, the Zambian mining fiscal regime has not been consistently applied over time and the Zambia Revenue Authority still seems to have challenges with administrative capacity.

Mr Banda said Radical shifts from profit-based to revenue-based tax instruments in recent years seem to confirm this and all mining revenue is deposited in the consolidated fund.

He said this makes it lose identity because it cannot be tracked to any public expenditure.

Mr Banda added that Geological and mineral information systems under geological and mineral information systems, it was moted that Geological Survey Department is underfunded or poorly resourced making it difficult to effectively discharge its responsibilities.

He said there are no enforceable arrangements for mining companies to deposit information with the Department and this makes mining companies have a monopoly on geological and mineral information.

“Environmental and social issues Under Environmental and social issues, the following key issues were unveiled; No clear policy framework and legislation exists to deal with post-mine closure issues; and current legislation does not contain any land use policy and law”, Mr Banda added.

He has since recommended that government should maintain stability in the mining fiscal regime by designing a tax system that will stand the test of time.

Mr Banda said government should also match the administrative complexity of the designed tax instruments with the administrative capacity of Zambia Revenue Authority by establishing an independent mineral stabilisation fund that is not tied to the consolidated fund.

He said government should further legislate an Act of Parliament that transforms the Geological Survey Department into a state agency with its governing board and sustainably fund the Geological Survey department using a portion of mineral royalty.

Mr Banda also sugeated that government should establish compelling mechanisms that force mining companies to deposit geological information with the government, Develop clear land-use policies and laws and Develop policies and laws for the management of post-mine closure issues.

He said the above policy recommendations once implemented will go a long way in spurring broad-based sustainable growth and social-economic development in Zambia and Africa at large.

Mr Banda says these will also provide a platform for Zambia to fully benefit from its natural resources acting as a key to alleviating poverty levels.

The Africa Mining Vision is a continental policy framework that was created by the Africa Union in 2009 to ensure that Africa prudently utilises the wealth of its natural resources.

The AMV seeks to promote transparent, equitable and optimal exploitation of Mineral resources to underpin broad-based sustainable growth and social-economic development.

The AMV is based on nine pillars namely, Fiscal regime and Revenue Management; Geological and Mineral Information Systems; environmental and social issues; building human and institutional capacities; artisanal and small scale mining; mobilising Mining and Infrastructure Development; Mineral Sector Governance; Research and Development, and linkages and diversification.