International Monetary Fund (IMF) Managing Director Kristalina Georgieva concluded her January 22-24 visit to Zambia with a statement on the country’s economic situation, praising the nation’s “enormous potential” given its natural resources and young population.

“I came out of these interactions hugely impressed by Zambia’s enormous potential given its rich endowment of natural resources, and a dynamic and entrepreneurial young population,” said Georgieva. “Zambia is making tremendous progress on reforms, at what is a particularly challenging time for the world economy.”

During her visit, Georgieva met with President Hichilema, Minister of Finance and National Planning Musokotwane, and Central Bank Governor Kalyala, as well as students, civil society, and members of the private sector.

In her statement, Georgieva commended the government’s efforts to improve the use of public resources by redirecting funding from poorly targeted and inefficient spending to education and health. “I want to especially highlight Zambia’s efforts to improve the use of public resources by reallocating resources from poorly targeted and inefficient spending and redirecting them to much-needed spending on education and health, a critical investment in Zambia’s most precious resource—its people,” she said.

She also praised the government’s attempts to increase transparency and combat corruption, noting that these steps are vital for protecting public resources for the benefit of all Zambians and creating a better environment for investors and businesses.

However, Georgieva emphasized the need for swift resolution of Zambia’s debt situation in order to preserve positive growth momentum and complement the nation’s reform efforts. “Zambia also needs swift resolution of its debt situation to complement these reform efforts and preserve the positive growth momentum,” she said. “We recognize that these are complex and challenging discussions, but it is clear from my visit that Zambia is doing its part, so I strongly encourage creditors to move forward and reach an agreement on a debt treatment as soon as possible. That would ensure we can move forward with the first review of the Fund-supported economic program and resolve a key source of uncertainty weighing on the outlook.”

Overall, Georgieva expressed optimism about Zambia’s future and the potential for the nation to achieve a more resilient and inclusive future through continued economic reform and debt resolution.

Copperbelt Province Minister Elisha Matambo has cautioned citizens against illegal charcoal production, illegal harvesting of timber and willful encroachment in the protected forest reserves as Zambia fights global warming.

When launching the 2022/2023 provincial tree planting season by the Forestry Department and Cooperating partners in Ndola on Tuesday, Mr. Matambo said cutting down of trees has contributed to global warming.

He urged more citizens to actively participate in tree planting as a way of fighting global warming.

Mr. Matambo said Zambia is targeting to plant trees covering two million hectares of land by the year 2030 hence the need for stakeholders to get involved in the exercise.

“The importance of planting billions of trees across the planet can never be underestimated. Planting trees is one of the best and cheapest ways of taking 25 percent of carbon dioxide out of the atmosphere. In turn, this will help tackle the global warming crisis, hence resulting in climate change mitigation. The need for urgent action is clear, as rapid climate change is progressing at a fast pace. Tree planting would have almost immediate results since trees remove more carbon dioxide when they are young. As we all know, forests are essential for life. Forests also provide a habitat for a huge selection of plants and animals. Forests protect our peaceful special places. They inspire wonder and provide special places to relax and importantly they supply the oxygen we need to survive. The importance of the forests to the welfare of our society can never be overemphasised. Before we can even mention any job and wealth creation, our very existence depends on this very important god given resource. Forests provide us with the oxygen we breathe every day and sink greenhouse gases and other gases, which are responsible for the global climate change,” Mr. Matambo said.

The Copperbelt Minister Highlighted the fundamental role forests play in regulating rainfall and stream flow is vital for agricultural production and power generation.

“Let me take this opportunity to urge all of us to take keen interest in protecting the forest resources for our betterment and the betterment of our children. Through the able leadership of his excellence Mr. Hakainde Hichilema, president of the republic of Zambia, has put in place adequate legislation that encourages the participation of all stakeholders in the management of the forest resources and forest restoration programmes. This includes the forest policy of 2014 and the forests act number four (4) of 2015.I urge the people of Copperbelt province to avoid acts that sabotage our forest resources. Such acts include illegal charcoal production, illegal harvesting of timber and willful encroachment in the protected forest reserves,” he said.

“These vices are not only counterproductive, but go against the rules that we have put for ourselves to be able to co-exist with nature and operate within the confines of the law. We should not only know how to cut trees but much more on how to replenish them. Trees take a very long time to grow and reach maturity, but take only a few minutes to cut. Let us therefore be very conscious of our actions and the effects that our actions will have on our children. Apart from the obvious tangible benefits, forests guarantee Zambia’s essential water supply. The fundamental role forests play in regulating rainfall and stream flow is vital for agricultural production and power generation.”

He said Zambia has committed to plant 2 million hectares of land with trees by 2030.

“Forests also play important roles in climate change, which include the following: increased tree cover helps to lower the air temperature and reduce the heat intensity of the greenhouse gas effects by maintaining low levels of carbon dioxide; forests produce wood fuels as an alternative to fossil fuels; and Forests have the potential to absorb about one-tenth of global carbon emissions projected for the first half of this century into their biomass, soils and products and store them in perpetuity. So, in order to address climate change’s negative effects, the government of the republic of Zambia signed the UN climate change conference as a contribution to the external dimension of the EU green deal and has committed to plant 2 million hectares of land with trees by 2030,” Mr. Matambo said.

Mines and Minerals Development Minister Paul Kabuswe has said that the UPND administration will prove its critics wrong on its plans to run the mining industry in the country, saying “loleleni, mukatotela” by 2025.

Speaking when he featured on Radio programme dubbed “Let the People Talk” on Tuesday, Kabuswe said that some armchair critics have been saying that the UPND government has no clear policy on that would ensure that the country benefits from its mineral wealth.

He said that, to the contrary, the UPND administration has formulated the mining policy and established the Minerals Commission while a law is in the pipeline, saying all these measures are aimed at ensuring to restore sanity in the mining sector and have a structured mining industry.

“The mining sector had stagnated for a long time. Zambia’s mining industry was not regulated. But the UPND government has formulated the mining policy that is aimed at bringing sanity in the mining sector, including small scale and artisanal mining. Apart from that, we have established the Minerals Commission to ensure that all mining activities are regulated,” Kabuswe explained. “Ba M’membe na ba KBF balelanda ati tatwakwata plan. Loleleni. By 2025 mukatotela (Just wait. You will be thankful by 2025). President Hakainde Hichilema and his leadership has a spine. Some leaders have no spine, they just talk. We have a plan. We want a structured mining sector.”

Kabuswe said that the UPND government wants to sanitise the mining sector and ensure that Zambians participate in mining activities “in a regulated manner.”

“A law is at consultation stage that will compel mining companies to give a certain threshold to Zambians. We want to encourage Zambians to form consortiums, establish artisanal mining industries. So far we have 400 plus applications for mining licences from both local and foreign investors. We are not going to allow foreign investors to dance on our heads,” Kabuswe said. “Whoever goes in the mining, be it copper, gold or manganese, must behave. Previously unscrupulous buyers were buying gold at a cheap price because there was no proper regulation in this sector. There were no monitoring mechanisms in place and most mining activities were being done illegally. Only a few individuals were benefiting from manganese mining, for example. We are not going to allow that. So far criminality in the mining has been curtailed. And the shovel and pick kind of mining has to come to an end.”

The Chililabombwe legislator also acknowledged that economic activities have dwindled in districts that depend on copper mining.

“My umbilical code is in Chililabombwe and I can tell you that looking back to the days of ZCCM when mining activities were ticking, things have drastically changed. Currently the situation is sad there. It’s the same in Chingola, Kitwe and Luanshya. Even me it breaks my heart. But we are equal to the task,” said Kabuswe.

He also said that the UPND administration has created a conducive environment for investment in the mining, which he said has led to foreign mining firms expressing interest to come to Zambia.

Kabuswe said that the tax holidays that the UPND government has extended to mining companies are meant to encourage investment in the sector, saying this will go a long way in ensuring that the country reaches 3 metric tonnes of copper production in the next 10 years.

He said this is attainable because of Zambia’s political stability and a predictable economy.

“Zambia has had seven Presidents with smooth and peace transition of power. We have enjoyed political stability. Additionally, the UPND government has brought about predictability in the economy. Previously there was no predictability in the economy, which made it difficult for foreign investors to invest in the mining sector,” said Kabuswe.

He also said that government, through ZCCM-IH, has made significant progress on the out of court settlement with Vedanta Mineral Resources, but could not give details, saying the nation will be updated once negotiations are concluded.

Opposition Golden Party of Zambia (GPZ) President Jackson Silavwe has opposed the imminent return of Indian investor Vedanta Mineral Resources to run Konkola Copper Mines (KCM).

Mr. Silavwe said only corrupt, inept, puppets of foreign business interests and self serving individuals and Government can talk about returning Vedanta back to KCM.

The Government through ZCCM IH is currently settling the case of disputed KCM ownership emanating from liquidation outside court.

Mine unions last week urged the Government to bring back controversial Vedanta to run the dormant KCM if it can’t find an alternative investor.

Heads of the Mine Workers Union of Zambia (MUZ), United Mineworkers Union of Zambia (UMUZ) and National Union of Miner’s and Allied Workers (NUMAW) held a joint media briefing at Katilungu House in Kitwe to advocate the return of Vedanta to run KCM.

But Mr. Silavwe said Vedanta cannot be relied on to run KCM because it was a crooked investor.

He said Vedanta was making $500 million per year in profits by the owners’ admission for more than 7 years but siphoned it out of the country whilst declaring losses to the Government

Mr. Silavwe said Vedanta has demonstrated lack of care and respect for the people of Zambia.

“Vedanta was making $500 million per year in profits by the owners admission for more than 7 years, siphoned it out of the country whilst declaring Zero to the Government. Invests “$1million” in PR stunts and makeshift projects plus a bunch of promises and some Zambian’s start singing praises to them. If you think such a company cares about your Country, you are greatly mistaken and very naive. I accept to be a villain and be insulted by Vedanta. Whether President HH and his Government returns Vedanta or not I stand by our position. If this is the mentality we have as a people, we are not fit to have such natural resources. What a mindset,” Mr. Silavwe said.

The Golden Party of Zambia leader charged that returning Vedanta back to KCM will be a national disgrace.

Mr. Silavwe said Vedanta failed to run KCM for the benefit of the Zambian people.

“We would like to differ with the Minister of Mines Honourable Paul Kabuswe and the 3 three mining unions, MUZ, NUMAW and UMUZ on returning Vedanta back to KCM. Vedanta’s return will be a serious indictment on our collective National thinking or the lack of it.KCM under Vedanta only benefited the owner Mr. Agarwal and his business associates. No wonder he boasted on video that KCM had been giving him $500 million every year in profit, plus an extra $1 billion since 2003 and yet KCM was declaring losses to the Zambian government,” Mr. Silavwe said.

He said GPZ was aware that President Hakainde Hichilema and his UPND regime lacked the will to allow Zambians to run local mining firms.

“We know President Hichilema and his administration lack any impetus to return Zambian ownership in any mine and run it profitably, the least they can do is look for a “new investor” that will come and loot our resources again in the name of providing jobs to locals and paying contractors. Only corrupt, inept, puppets of foreign business interests and self serving individuals and Government can talk about returning Vedanta back to KCM. By all accounts, Vedanta failed to run KCM for the benefit of the Zambian people. No matter the grand public relations (PR) stunts and secret exchange of dollars to politically exposed people, returning Mr. Agarwal and his Vedanta will be a huge disgrace to our Nation period,” Mr. Silavwe concluded.

The UPND Government has been pledging to unlock the mining sector that is currently faced with challenges of unresolved mine ownership, lack of capital injection and closure of certain operations.