The Zambia Chamber of Mines has urged Government to urgently engage with the sector in order to forestall the negative impact that will arise on the health of the Zambian economy if measures are not taken immediately to address the issues facing the mining sector in the midst of COVID-19.
Over three weeks ago the Chamber of mines submitted a broad three-phase economic plan to Government, to urgently manage the economic impacts arising from the pandemic.
This was with a view to providing some guidance to the government on the critical areas to be urgently addressed.
This proposal included, firstly, immediate relief measures that could be implemented by Government in a matter of days, followed by an emergency support package for which financial support could be sought from the IMF and World Bank, and lastly, a ‘fight back’ fiscal regime to be implemented once the COVID-19 pandemic has abated and investment is needed from which to rebuild the economy.
Zambia Chamber of Mines Acting Chief Executive Officer Talent Ng’andwe says since then all mining industry stakeholders have been hoping that some significant stimulus measures would be instituted, as is being seen across the world.
Mr Ng’andwe says tax relief measures announced by the Minister of Finance on 27th March, such as the removal of the provisions of Statutory Instrument 90 and the suspension of import duties on concentrates and export duties on precious metals, were a welcome first step in the broader relief package which is needed, however even these initial measures are yet to be introduced.
He said in the time that has elapsed since the initial submissions and the 27th March announcements, the industry’s circumstances have become more desperate and the issues being faced at Mopani Copper Mines are but an example of this distress.
“As Zambia, with other countries globally, grapple with the debilitating and public health danger of the COVID 19 virus, the mining industry in Zambia recognizes the catastrophic nature of the public health crisis as well as the untold harm this virus will wreak on the Zambian economy. Several mining companies have rushed to Government’s aid to demonstrate their solidarity with the Government and people of Zambia through various interventions. This is in recognition of the urgency and need to stand shoulder to shoulder with our host communities at this very trying time of need”, he added.
Mr Ng’andwe said as various senior Government Officials have pointed out, COVID-19 represents a very serious public health concern, but of equal concern is the negative impact on the Zambian economy.
He said the Chamber of Mines considers it essential that industry and government seize control of the negative narrative that has taken on a life of its own against the mining sector.
Mr Ng’andwe said this joint effort, the chamber membership stands ready to support government efforts in its engagements with multilateral institutions to obtain assistance firstly in the fight against the epidemic and secondly for the support of economic recovery.
The price of Oil on the world market fell to below Zero two days ago. Very soon this copper of yours will follow the same. We are getting in rough waters ahead and we all need to be sober in dealing with this.
Mr Ng’andwe, your call to urgently engage with the mines sector to forestall the negative impact is like insulting PEP KZ.
When suggestions are stated as you propose some sections of society see it as play joke. They are parasites benefiting from the dire bleeding economic situation Zambia is going through. We ask, who in government will you engage and what mode of engagement is the Chamber of Mines adopt to be understood by PF cadres. Detention of Mopan CEO by government while 000s are laid off without offering alternatives is a big ask from PF government.
State House Political Advisor is it former KZ has answers for you.
Gold is considered the safest haven in difficult times times like this. Zambia has discovered huge gold reserves in North West . Unfortunately it is being stolen by unscrupulous people from all over the world as complained by our President.
“Chamber of Mines want Government to urgently engage with the sector to forestall the negative impact”
The treasonous ‘chamber of mines’ can get stuffed. They were the ones who agitated for the goverment to not do a windfall tax on revenues, and instead tax ‘profits’ because those taxes would be easy to evade.
And now they’re here with their hands out and want the same government they cheated out of taxes to do something for them???
Put them in jail for being the tax evading criminals they are.
“This proposal included, firstly, immediate relief measures that could be implemented by Government in a matter of days, followed by an emergency support package for which financial support could be sought from the IMF and World Bank,”
This is where I need some education. Why should finances only be sought from the IMF and World Bank (WB)?
Like there is a famous quote “it doesn’t matter the color of the cat as long as it catches mice!” The Chamber of mines must just present it’s budget needs and leave the rest to GRZ to source the funds. Indications are emblazoned all over – Zambia is a NO-GO Area for IMF and World Bank because of it’s opaque loan dealings with China, other bilateral and multilateral partners.
It is not like the IMF and WB are courting Zambia to get the…
It is not like the IMF and WB are courting Zambia to get the relief, it is the other way round.and on condition that Zambia fulfills certain requirements.
There is need to think outside the box. The money obtained anywhere else is of no less value than the money on offer by the IMF or WB! The problem has been accountability and discipline to utilize the funds for the intended purposes.
Zambia is economically in ICU. Inflation record high, price of mealie meal record high, reserves record lowest ever, exchange rate record high, unemployment record high, kwacha second worst performing currency in the world another record. All economic measures that a country uses to measure its health are in negative and declining further. Borrowing was reckless so we don’t even have anywhere to hide, completely naked as a country. And the arrogant ones are still blogging and arguing as if inflation is at 6% where MMD left it
“This proposal included, firstly, immediate relief measures that could be implemented by Government in a matter of days, followed by an emergency support package for which financial support could be sought from the IMF and World Bank, and lastly, a ‘fight back’ fiscal regime to be implemented once the COVID-19 pandemic has abated and investment is needed from which to rebuild the economy.” I love this part of the article.
It is a good developmental move for private sector in regards to the mines to actually partner with government towards the fight, mitigation and recovery of the economy during this trying time.
My question still remains. Where is the practical diversification plan from mining to Agriculture? When are we upgrading peasant farmers with potential to mechanized farming so that we can produce more for both the local markets and for export to rake in the much needed forex? When are we going to ever realise that sending maize and mealie meal to Congo is not smuggling but that is a very lucrative market for Zambia to capitalize and earn more. If there is a real diversification plan, what incentives and tax breaks will be offered? And also which year does the plan project agriculture to take over mining as the major contributor to GDP. Why should Malawi, a much smaller country produce more cotton, Tobacco, groundnuts and Maize than Zambia? Why should it be that way? Why?
@Fackson,
Remember KK’s “Green Revolution” and “Go Back To The Land ” calls of the 70s? I believe this was to form the basis of diversifying from mining to agriculture. It is also my considered view that this is where the genesis of our economic woes lie. With the mindset that we had to quickly move away from a copper dependent economy to agriculture, it meant that little reinvestment was pumped into the mining industry by way of exploration for deposits and other minerals and technology upgrade. The end result is that the mines were rundown and production continually declined and as a consequence revenue accrual to the country also reduced.
Sending maize and mealie meal to Congo is an age old activity – smuggling or legal export. The problem is purely unnecessary red tape…
…Don’t you find it paradoxical that the FRA is unable to offer a competitive maize floor price and in most cases cannot buy off the entire season’s produce yet GRZ will be imposing a ban on export of maize? The DRC (and now Malawi has joined the fray) is a very lucrative market for Zambia to capitalize and earn more but there are no feasible modalities in place and deliberately so because the beneficiaries (usually connected people to the powers that be) thrive on the confusion.
Early Social Studies curricula had it that Zambia’s eastern province’s had Cotton, Tobacco and Groundnuts among the lists of cash crops and I think there was visible presence of companies such as Dunavant (world’s largest cotton merchandisers, the middleman for cotton); Tobacco Board of Zambia (TBZ) and…
….you remember the Chalimbana groundnuts? The problem is that in Zambia Farming (and or FRA) has been made synonymous with maize!
We need political will and a change in mindset to setting our priorities correctly. There should be deliberate policies to protect the textile industry (ban salaula), ban importation of cigarettes/help tobacco farmers secure futures markets and ban importation of edible oils (revamp Refined Oil Products such like industries). Vanity projects such as de-congesting Lusaka should wait for proceeds to be generated by agriculture!
“Zambia Chamber of Mines Acting Chief Executive Officer Talent Ng’andwe says since then all mining industry stakeholders have been hoping that some significant stimulus measures would be instituted, as is being seen across the world.”
They’re first in line with their hands out for government money, and first in line to complain that they shouldn’t pay taxes.
The mines must be renationalized and stop this kind of nonsense once and for all.
This should demonstrate why privatisation is just a con game.