President Michael Sata has ordered that all exports from the country need to be cleared by the central bank.
The government, formed this week after Sata’s election win, is seeking more information on what is being shipped out of the southern African nation, Sata said in a speech in Lusaka, the capital, today.
Sata said all export payments had to be routed via the central bank, including those for copper, its main export.
“Nothing will be exported out of Zambia unless confirmation of payments is received from the Bank of Zambia,” Sata told a news briefing after swearing in his new cabinet.
Sata has long questioned copper export data and some experts say his concerns are legitimate. Copper accounts for three-quarters of Zambia’s export earnings, but the mining industry contributes only about 10 percent of its tax revenue.
Former President Rupiah Banda told Reuters in March audits had revealed that the Zambian mining sector owed up to $200 million in unpaid taxes.
According to Zambian figures, much of the copper exports are destined for Switzerland but little of them show up in Swiss customs data, raising questions about transparency.
The anti-corruption moves follow Sata’s decision to fire his respected central bank governor and the appointment of a new mines minister who may look at plans to boost tax receipts from mining companies.
{Bloomberg,Reuters}
Accountability ………….
gud move but we dont want too much govt involvemnt in pravate conpanies,otherwise the investors will not like to much beaucratesses.
bureaucracy is the inevitable consequence of the irresponsibility of the private companies themselves.
Amanone mubwatooooo!!!!! I can’t even feel the waves, elyashi ili bane!!!!
90 days at work malume!!!!!!!
gold ku Solwezi moves from Kansanshi straight to the Airport without proper accountability for tax purposes. Yamene iyo malume.
No wonder some people are saying they know they will be sent to jail. Uko!
A lot is to be reviewed! The cruiser is near the Carribeans now people. Sipping on my Mosi! Wapya Munzi!
Eya ya yeah….lekeni Sata ateke.Way to go king Cobra
Mmmmm I think fya yamba ukupanga sense.
90 days promise kept. He has done a lot in one week than what RB did in 3 years
Please learn to differentiate between talking and action. Our president has just spoken what he thinks should be done in future note compared to what has been done.
Let us wait and see how these talks will translate into realities. Mwilasekelela penault ,Keeper alekata. Be a thinker
THE RE-INTRODUCTION OF NATIONALIZATION. BE VERY CAREFUL WE ARE IN THE GLOBAL VILLAGE.REMEMBER CAPITALISM IS WATCHING.
Thats the way to go Mr President sir!!!!! We need more accountability from our mines!!!
awe mwandini……sata mukali
yakosa inkani bane ba jelabo, no more illeagl copper business
This is the best move. I thought Sata was going to let us down but seems to understand. He is indeed a missing piece in Zambia’s economy. We need acquitor and export documents to pass through either BOZ or other banks. Nice one Mr President. Even incoming funds from foreign exports should go be tallied to export invoices. Am finally smilling.
Ba Jose # 10 what is your problem.This is not nationalisation.We just want to know whay is being exported and compare this to tax received on the export.checks and balances baba ! ! ! !
I find His Excellency’s zeal most commendable. However, this action will not resolve the issue of transfer pricing which is currently dogging the mining sector. Dismantling the transfer pricing mechanism (sale of copper to international subsidaries at reduced prices) contained in the development aggreements is what is needed soonest to ensure that Zambia reaps more tax from the mining houses. ***********
Analyst,
Transfer pricing or no, they will be caught out. there’s a market price for copper. Its like importing a merc E300 and saying it’s worth $100, ZRA will tell you to take the short cut to hell.
Muntu: All I can say is GOOD LUCK….
I am happy about this move.
NOW THATS THE WAY TO GO
I really like pretty much everything I am hearing about what the new Sata government is doing.
To sustain this level of energy, I think the people have to become involved in the setting of development priorities at the local level. Whether that is through decentralisation to the local level of government in the long term, or through referendums (referenda?) and the creation of fora in the short term.
However, as we all want to see development and the money that is needed for it, we should all support the PF government when it goes after collecting taxes from the mines.
This is a nice move and well done Mr. President. please kindly initiate a gold audit as i am told Lumwana mine produces alot of gold that does not appear on government ladder.Â
HH you were questioning about the 90days. we want you to coment or comend if this makes sence or not . i wonder if you had all these plans for the nation.
EMERALDS ALSO GOING STRAIGHT TO AIRPORT EVERY FRIDAY, YET NOTHING IS EVER DECLARED TO MINISTRY OF MINES OR ZRA.
donchi kubeba
In fact, if you like and support what they are doing, you should actually demonstrate IN SUPPORT of the government, to give them a public show of the support their policies enjoy. Which will help them if they need to negotiate anything.
#16 Analyst – The president has it on control. If they pass through BoZ, the copper price will be maintained. We do not need to be so much blunt but work with some diplomas. Sata has handled this issue very well. HH and UPND must be wondering how Sata is working. Accountability is the tone to go.
?? Copper prices have nothing to do with this! This is just to make sure the mines are exporting what they say they are exporting, nothing more and nothing less. Prices are set by prevailing market conditions of which Zambia has zero control.
Keep zambia clean. Nyc muv, no illegal transactions. Many zedianz ar suffering today Coz of dirty mmd deals.
can HH comment on these developments which Sata is initiating now?
excellent mr president. we love it. go go mr president.we re behind u.stop also whites from taking tourist from airport to various lodge and hotel. let/give this business to our local cab drivers to do the job, unlikes is the situation where much needed dollars are left abroad.this can put more money in pipos pockets/
Excellent. These are kinds of processes we need. For every export, the Bank of Zambia must ensure that the payment is received into the country. Thats the way it worksround the world. Good work Mr President. The Ministers and Civil Servants must make sure that they implement these procedures. Support the President and get down to work people
Nice, nice move, Oh how nice! Things are beginning to unfold I feel we’ll learn more. However let this be not too bureaucratic at the expense of efficiency.
@16 good observation and advice Â
OUR COUNTRY AT LAST!!! This is a great move! Now even kwacha may come down! I may be speaking too early but no wonder its even raining early now!
It appears most bloggers dont understand the export mechanism.Tell me which exports dont pass through CSO,BOZ & ZRA? The man is just going round circles like renaming things which have no value whatsoever.You are talking about reducing the cost of doing business now all exports have to wait for BOZ clearance,Then what will ZRA do? Stopn getting excited at making meaningless prouncements.
Ugly Truth, Am amazed you are worried about time to clear exports when u shud be worrying about what we earn from the hurried process. Give the Govt time to streamline the process we certainly need full benefits from our natural resources.
I am totally not PF but political part .On the way things are moving so far ,i must say that i am very imprest.Mr president go ahead you are on the right track. Please also ACC Boss must be fired immediately and IG Kabonde.Let this people go. Find time also to visit your people in hospitals, UNZA, NRDC, HORN etc.We need change. With this pace will not have an opposition political part next time.
Also the arms deal by former president’s son which Mpombo mention that is what caused him to fall into a swimming pool in livingstorn.Let it be investigated.
They was also an issue to do with the land in North Western to be given to King Muswati?
Can all this things be investigated and results made know to the Zambian people please.
Has His Excellency the President of the Republic of Zambia appointed a new BOZ Governor?
NOW we can why the president called mumbi an *****. guys imagine RB in office today.
Where is Senior Citizen, the know-it-all MMD strategist?
Kwena Sata mwaume! I voted for him with a certain level of expectation that we wil indeed deliver but am shocked that he is delivering above my expectations. Sorry i underrated you your excelency.
And he is going to appoint a TOUGH guy at BOZ. Good luck kuliba FIKAISOVA.
We nw have a working Government and all thoise who have been amassing weath in dubious ways must get ready to face the wrath of Zambians!!!!! Your Excellency, lets get down to work!!!!
This is ACCOUNTABILITY
# 16 Analyst, I concur with you. The stealing by the mine owners through TRANSFER PRICING has to come to an end! This will result in more taxes being collected from the mines. Way to go Mr. President! Further as another blogger has pointed out the GOLD PRODUCTION by Kansanshi and Lumwana mines need to be audited. Keep it up Mr. President, we are with you!
Yes Mr. President.
Gold being exported in copper concentrate from Kansanshi needs to be declared. AT PRESENT, THEY ARE ONLY DECLARING BULLION (GOLD BARS). The bulk of their gold is in the copper concentrate!!!!
BaJoe ##10,You are an embarrassemnt, he said he is taking oevr the mines?? What is wrong with checkign what these people are exporting so that they pay appropriate tax insead of cheating you??? You are the people mocking him about money in your pockets, where do you think it will come from. The man has started cleaning up cartels including at ERB, give credit where it is due. Like someone said, in one week, he has done mor that lazy RB did in three years, apart from launching toliets, that is!!!!
This is a great idea from President SATA.
But celebration based on mere idea is catastrophic.
Overstepping into anything has reparcations, because in a purely give and take situation not all is dependent on what i want but what others want.
An efficient, effective and quick system to do this job will be welcome.
But if the controls are going to cause business delays and losses the whole thing will be a serious deterant to investors’ interest in Zambia.
If well implemented it will make zambia get what we deserve out of our resources.
Good and brilliant idea, but caution, caution, caution!!!
watchout for unnecessary business delays and enefficient procedures and processes in the whole setup.
Else we mess ourselves up.
Ok, I gotta hand it to him. Hes now holding the bull by its horns. Way to go MC (Wabwino) Sata
thats the way it is! Even in south Africa, all Exports payments go through the reserver bank. am surprised its still like that in Zambia! VIVA PF!
Good, this is being patriotic. This is what KK’s reign was good for, taking care of Zambia, not foreigners investors only. We support you Mr President.
Time to clean up the mess has come, all countries in the world are moving forward why not Zambia? Sata a true nationalist is just protecting what belongs to Zambians. will keep an eye on this good idea
no copper goes out of the country without zra clearance i work for a transportation company that transport copper, what the president is saying is may to transfer it from Z R A to BOZ
THIS IS THE RIGHT MOVE AND RB AND MMD TURNED A BLIND EYE COZ THEY MAY HAVE BEEN BENEFITING AS INDIVIDUALS. I SALUTE THIS MOVE BY HE MR SATA. WHERE ON EARTH A COUNTRY THAT HAS NOT FAILED TO EXIST ALLOW EXPORTS TO BE CONDUCTED WITHOUT THE KNOWLEDGE OF ITS CENTRAL BANK. THIS IS THE REASON WHY THE KWACHA REMAINED VERY WEAK. LETS WATCH SATANOMICS AT WORK. ITS SIMPLE ECONOMICS THE MEN AND WOMEN WHO WERE CHARGED WITH RESPONSIBILITIES OF RUNNING OUR AFFAIRS HAD BETRAYED US. LASA LASA. TO ALL INVESTORS MAKE AGREEMENTS WITH THE PEOPLE OF ZAMBIA AND NOT INDIVIDUALS. PEOPLE CHANGE GOVTS WHEN THYE DONT SEE THE BENEFITS RB OUT SATA IN POWER BUT ZAMBIAN PEOPLE ARE STILL SUPREME. DONT CUT DEALS WITH GRZ OFFICIALS BUT ZAMBIAN PEOPLE TOSAVE YOUR INVESTMENTS. DEAL TRANSPARENTLY
The other thing is that he wants to do things differently from the way they have always been done.
Even if there is no meaning of what he will be doing people will still get excited because it will break the monotony.
For example people are very excited with the renaming of structures that have been around, some for years.
He will preoccupy people with a big schedule of renaming things, with excercise will amount to nothing but excitment.
This is how dictators divert people’s attention from real issues to irrelevants.
Propaganda is the strongest and richest tool for a dictator.
You fool just keep quite you dont know what’s going onÂ
another mistake, he should have put structures to make it efficient first before alarming people.
Stop counting mistakes
What a man of action! The opposition can onlycry.Less than a week we have seen them cry about William Tekere Banda. We are yet to see them cry about Bum Dora Siliya when Haarington presents his case, they are yet to cry about Regina Chiluba, the Fuel scandle and the rest. No wonder their party president was saying he nows he will be tried and sent in.
We have not even touched Katele Kalumba. How about the maize deal? Ala fingi!
This is good.. Where did he pick this idea from
Being a ‘man of action’ does not make anyone a good leader.
Sorry for those of you who find comfort in the fact that SATA is a man of action.
I will tell you what; Mugabe is equally a man of action.
But the question remains – what actions is sata gona get you into???
That is where pondering must dwell.
The song ‘man of action’ can either build you or break you.
If a murder is a man of action, society is in trouble.
If kind, generous, moral and hardworking man is a man of action, it is time for all to celebrate.
Watch out for SATA’s actions before you set up parties for yourselves.
But above all pray so that his actions will not cause hard times for mother Zambia.
We need to probe Maureen Mwanawasa as well…never mind Zampost MD….imwe these peole never learn..also Passport Office, Drivers License we suffered under some of these people never mind reg card…yah zambia…
Carlington Maize deal…..Edith and PS Justice, Mulongoti..imwe mwapya…Rubex construction…NAPSA….
It is really a good idea, but Iam sceptical whether this function should be placed under BOZ. The Central Bank may deal with monetory side of things but real productivity – not sure. More analysis.
To a PF cadre, it does not matter what is being said and how it is said as long as SATA is saying something its enough to bring joy and celebration.
They even sleep with a free peace of mind as a result.
Zambia is not supposed to be a poor country! Just a victim of selfish, mediocre and sleepy leaders! Please ba Sata may God grant you good health and wisdom to lead this country. We have suffered enough in the land endowed with abundant wealth!
e need to consult , it’s is export first then pay afterÂ
#60 Peter London, ******we matol.e. You think you know it better than the rest of us. Musula!!!!
Spot on Mr President. that is what we need.
We just need to wait a short time to see the results of this red-tape step.
Make HH look like U5!
UNIP days are back. I can smell socialism and state control.
Delivery of goods and services to Zambians does not lie in pronouncement enquiries and changes of a pletholar of institutions. This though may be seen at the outset as a fantastic idea and there at the end of it lay a repeat of history. Remember when all Zambians resolved to change in 1991. Dramatic and drastic changes came through including removal of the face of KK on currency. Everyone praised it and as Bembas said “Kalesosa bwino ichisugu”.
Yes, Zambia was duped with new culture of national plunder in the name of changes. My humble concern is its too early to cerebrate. Lets give Sata time to perform.
that is what we patriots have been saying. Right now as long as someone has a mining licencee and pay taxes on what they are expected to produce they can even ferry out 10 times the declared minerals. It is a free for all right now costing zambia billions of $s. MMD were selling our country. Just wait until sata gets to the books, some pipo are  going to jail. how can you have a country which is listed as in the top 7 of emerald producers yet GRZ does not get any meaning full revenue ?
This is not accountability, he is being way to hasty. There needs to be an actual analysis of the situation and then the eventual development of a real plan and good follow through. Like someone mentioned ZRA already takes note of export needs. If there are discrepancies its because there are corrupt people working there, not because a system doesn’t exist.
A central clearing house does make sense. But like anyone will tell you a clearing house is used to clear trades. This is very hard to do when the trading is being done in London!
Its public knowledge that for transaction cost purposes multinational companies use various shell companies to trade within the firm so to speak and thus reduce the overall cost to the firm on a particular trade.
What the President should do is focus on creating more transparency in the country’s already existing systems and not assuming that an overhaul is needed without actually doing any analysis. He’s prescribing medicine without knowing the problem so to speak. Yes there are problems in the way trades are handled, the ZRA should look into ways to change this.
The MoF under the last MMD admin for example begun to use electronic systems and established a single treasury account so that there would be greater transparency and as such reduce the chances of corruption. The ZRA needs do the same. Sata needs to take a more consultative approach to his presidency otherwise he will make many mistake. To the unexposed, these seemingly large statements seem like change, but they lack substance.
Change will come not through endless inquiries by partisan commissions, but by making sure already existing systems are actually upheld and that all graft is dealt with severely. That professionalism is brought back to the civil service and that people respect the rule of law. That above all other civic issues is what Zambia needs, a respect for the rule of law and proper governance. Inquiries, pronouncements and the like don’t do this. Systematic change that comes as a result of analysis does. Take Obama for example he wanted Guantanamo Prison closed but once he became president he analyzed the situation and saw the value of the prison and how closing it would be difficult. He understood the problems the previous govt had to deal with. MCS needs to be a man of both thought AND action.
Currently, papers are raised, stamped by Zra, and minerals exported. Banking is done in Zurich and other overseas cities. The money has also been externalised.
ALL WHAT BOZ GETS ARE STATISTICS. AT ABOUT 15TH OF EVERY MONTH THE MINES IMPORT OUR MONEY AND PAY VAT, DUTY(EXEMPTED!) AND JUST ENOUGH FOR WAGES.
What Sata is saying is that before exporting, BOZ will check if previos exports have been paid for by way of forex receipts. In short the Mining companies will have to indicate in their transaction that the receiving bank is BOZ. As a layman, i dont foresee anything detromental to the economy. Yes kwacha will gain and exports will be expensive and will import a better SALAULA AUTO cheaply!
I still do not understand what difference BOZ will make! Why should it matter that the Bank chooses to hold its money in a foreign bank? As long as they pay their taxes it shouldn’t matter!
Personally the problem seems to be that ZRA is just inefficient.
Using foreign banks is something that is practiced by multinationals the world over. Even Google does this in the U.S. Companies do this to legally reduce their tax burden.
What the government needs to do is focus on making sure ZRA gets factual data. Forcing the mines to do their trading from Zambia doesn’t make sense especially considering that the bulk of metals trading doesn’t happen in Zambia itself. Metals are bought and sold on metals exchanges. This makes the mines operations international by nature.
@Thoughts….please think. Holding ca$h with BOZ instead of overseas makes a huge difference. It will boost Kwacha value.
” Forcing the mines to do their trading from Zambia doesn’t make sense especially considering that the bulk of metals trading doesn’t happen in Zambia itself. Metals are bought and sold on metals exchanges. ”
Well then it is time to create a Zambian or SADC commodities exchange. Why would Zambian copper be traded in London to begin with?
Can anyone please tell me what is the function of the Export Board of Zambia?Now is Zambia going to function thtough commission of enquiries?Some of these issues need to be investigated first.Be careful lest we scare the investors away.It is a good move but a sensitive one also.
It is like Zambia is reborn-there has been alot vandalim going on by the so called investors in the mining sector and no politician had the guts to stand up to say enough is enough! As smeone has stated above,Mr president, the actions you have done in just a wk is mr thn what RB did in 3 yrs-well done,let them not threaten with withdrawer of investments-if they do not agree with you,there are free to park and go,I can assure you, Copper,Cobalt,emeralds are hot cake minerals-they leave,others who are geguine investors will come in.Mr President,we have faith in you, and that is why some of us had to buy air tickets to come and vote for you because we have in faith in your acts.Mr President, also increase the salaries of all govt workers by 100% to attract the best brains.
Sata is uneducated he has no degree. He will destroy the country he will bring homo… Br bra bra bra bra now see what uneducated people can a kaponya. Hahaha
PEOPLE, we the big brains know that to put things correct, you need to put in place some tough measures immediately and then start building a long term system. SATA is doing just that. For those who don’t know management, example is a house. You start by putting in super structures then you can think of how you will decorate later. SATA has to put in super measures first to stop rampant export of Zambian resources then workout some long term means. Hope you get it.
Secondly, starting slowly will not send a good signal to would be smugglers. With SATA’s declarations anyone will think twice before attempting to do the wrong. SATA means business and will not take nonsense. All foreign investors hide their exports and l can tell you they are looking very carefully.
Fellow Zambians, much as what Sata has done is right, it may not be right for business as this may BRING IN red Tape, which may make BOZ officials to open up to corruption and delay the doing of business in Zambia.
It may cost as in the end as Zambians. Let us not celebrate this actions which may cost us later like when Kenneth Kaunda made nationalistic policies which made us to lose business and companies.
My question is, if all exports have to be cleared by BOZ are we suggesting that even small businesses exporting goods ,say for example baskets and artifacts ,should under go the same process? I agree we need to have a system that will ensure accountability. However Lets limit this to all agricutural and mineral exports. The creation of more clerical duties does not exactly equal a better process. All in all step in the right direction.
Apa walasa Mudala. That’s where the country was losing money
This sounds like more money in your pockets.
Reverse Gear !
Accountability is what has been lacking in this country. We need systems that will ensure that Zambians benefit from its natural resources. Viva Mr President MC Sata
Imwe bantu.
As a country we are too scared to make important decisions because we are scared we will annoy other people – we are too nice and in the end we continue to remain poor.
I do not agree this will bring red tape. Boz compiles Balance of Trade stats and with the pace Sata has set, no one will want to be made an example! For the 1st time, a govt commission has been given 30 days to investigate ERB adn present a report – unheard of in the civil service!
efficiency ill come and businesses will behave!
SATA mwaume zoona.
Some pipo are suffering that the 90 day promise is achievable.
Sata has to reconsider his move to be along market forces.it is correct but if he wants the US dollars from copper revenue passing through Zambia’s money markets he should have just said that all exports have to be paid for in Kwacha. This means all the US dollars have first got to be changed into Kwachas and these Kwachas used to buy copper. If the mines want to externalise their Kwacha revenue then they have to go to the bank or bureau just like you and me, meaning all Zambians will have equal access to the US dollars generated by the nation and not have an exchange driven by US dollars released by mining companies to pay for wages and tax obligations that only represents a fraction of the total US dollar revenue from exports.
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