President Edgar Lungu says government will no longer tolerate mining investors who cry foul each time the country tries to earn something from the mines through new tax measures.
The Head of State states that government will no longer tolerate mining investors who rush to courts even when they have completely ruined the mining resource.
Speaking when he officially launched the Economic Recovery Programme 2020 – 2023 (ERP), President Lungu said time has come to decide the country’s own destiny.
He indicated that government will certainly work with investors that have exhibited goodwill and they are there.
“This economic recovery programme provides for a way to capitalise on the high mineral commodity prices to harness that potential for the benefit of the country. In that respect, we must build on the potential of gold to systematically build our strategic reserves. We must assume a significant stake in some selected mine assets so that we create sufficient value for the nation and also a means of comparing such mines with private sector owned mines,” said the President.
“In addition, owning a stake in some strategic mines gives the state the leverage required to utilise the defined mineral resources to benefit the nation beyond taxes. You will, therefore, observe that there is a deliberate strategy to acquire additional stake in some selected mines to support the growth trajectory. I must mention here that this is not nationalisation of mines, on the contrary, it’s the state acquiring majority stake in selected mines while allowing private investors to also participate in the sector.”
President Lungu further indicated that whereas the current mines with defined resources have supported this generation of large-scale mining activities, Zambia must invest in more exploration to further guarantee success in the extractive industry.
He explained that exploration will not only be for minerals but also for oil and gas.
“My government through this economic recovery plan will also provide a stable fiscal regime for the extractive sector that can promote more investment in exploration. We have already started seeing the potential of gold with the advent of zambia gold limited. The plan recognises the need to harness the gold potential and expand it by encouraging more investment in the gold subsector. Formalisation of the smallscale and artisanal sector cannot be over emphasised so that all the gold is not only accounted for but also used to spur economic development in the nation,” he added.
“The economic recovery programme, therefore, projects the need to organise the gold subsector both in terms of the trading but also mining and processing. Ladies and gentlemen, as a country, we have depended on copper since its discovery. We have been told for years now that copper is a wasting asset and that we should look at other sectors for our survival in future. However, copper continues to sustain our economy and I dare say it will still continue to do so for years to come.”
The Head of State emphasized that his vision is that, while mining continues to sustain the country, there is need for value addition to the resources so that the country produces a range of products from the minerals, gain foreign exchange from such products, and also create further employment for the people apart from mining.
You don’t need to warn people to show that you are working! It’s better to even work in the background and let the results show!! Even the so called recovery seems to be a publicity stunt! The question is why did we let things deteriorate to come up with recovery? Why did we not institute a mitigation plan? Instead of waiting for the economy to crash then launch a recovery?……..just using common sense!
Ba Ntambalukuta in the first place its up to you to prevent them from completely ruining the mining resource. Yes Tom Muumba why do we allow things to deteriorate before coming up with preventive measuers?
These after the fact actions don’t send good messages to investors.
One of the gravest mistakes of PF , who have been the GRZ with the most borrowed money, was to totally neglect the once vibrant industries that serviced the mines…..
They have gifted South Africa and China tremendous employment opportunities in their countries because almost every thing used by the mines comes from there instead of being produced in Zambia….
Recovery shouldn’t be far-fetched dream. Just deal with the economic cancer-corruption.
– Corruption in awarding public tender
– corruption in spending public money
– corruption in collecting revenue.
Is it the mines who told the state to purchase those fire trucks and ambulances at those artificial prices. Even though mines could pay the right taxes would the monies he used in the right, legal and prudent way.
If we are serious about maximizing revenue collection why dont we allow council only to collect money from markets and bus stations?
No meaningful economic recovery if we dont want to look at FIC and Auditor General’s reports.
Why sound a warning? Government interest is represented on the boards of directors of these mining companies at all times through ZCCM-IH. How do the directors express this government interest?
Stop wasting our time bwana …
Tell Zambians where the economy went wrong before warnings on the recovery of it
The greatest challenge we have in Africa and Zambia to be specific is Leadership. President Lungu lacks the qualities of a transformational Leader to turnaround the economic fortunes of this country. The PF took over a very vibrant economy in 2011 and if they had a proper vision for Zambia they would have scored tremendously but alas here we are today talking about recovery plans that should have been done in 2015 when the signs of disaster started showing. The laizerfaire kind of Leadership he’s exhibited from the time he took over Power in 2015 is not the kind of Leadership a developing country like Zambia needs.
This man though
Kuwayahwayahfyeh
Economic recovery plan? As far as Mr. Lungu is concerned his economic recovery plan begins and ends with it’s launch. This is the same man who a few months ago terminated the Central Bank Governor’s contract, promising to take charge himself. Let us just say the economy and the currency have been in free fall since.
While we are discussing great public launces, I seem to remember the pomp and splendour with which he launched the PF manifesto at the Heroes stadium in 2016. Except there was NO manifesto. It was still being printed was the explanation given, It did not arrive in 2016 , and still has not to this day.
The mistake pf is making is that , any investor especially in mining is an enemy. They should take the stance of MMD. They consider th as partners of development….Advise never fight with a person with money but partner with him
Once again, let it be spoken without apology that Zambia’s natural wealth belongs to the Zambian people. That said, negotiation of deals has been so poor on the part of our government such a new strategy/approach is urgently needed. Way too much opportunity has been wasted.
We can’t continue to allow a situation where investors are richly rewarded for excavating minerals while citizens are punished for owning them. The essential point/strategy has been highlighted in the last sentence of the article: “… there is need for value addition to the resources so that the country produces a range of products from the minerals, gains foreign exchange from such products, and also creates further employment for the people apart from mining.”
This Bum is still issuing warnings when his time is already up ….really laughable!
Seer 1 come and addidas here in zambia , at recovery someone is agreeing that he has messed up the economy !!!!!!!! Haaaàa yaaaa ,kkkk
They should know that Zambians come first
Launch of economic recovery programme?
Recovery programme?
The plan is simple
1. Cut corporate taxes to stimulate the economy
3. Cut down on excise duty/import duty on key raw materials
4. Zesco to give incentives to manufacturing companies=reduce cost of production
5. Reduce Pay as you earn (Payee)= more money for people to buy reduced prices of goods produced.
6. Ease regulation
7. Close holes of smuggling.
8. Introduce tax holidays for key sectors and sectors hit hard by covid.
To achieve all that. Clean up the house of corruption.
You can add peripherals to the above but that’s all you need for your recovery.
Bruce Mulenga good insights. But I argue that reducing the revenue base when you are already in a hole will not fly. What is needed is additional investment in productive sectors that will in turn grow your tax base. No one will bring their money in an economy that has no direction. We need to stabilize the indicators of our performance including the Eurobonds and our credit rating. With the indiscipline we have witnessed in spending we need IMF to attain this.
Zambians are happy that foreigners own our mines.
if HH (or any other Zambian) owned the mines, there would be war.
It will take hundreds of years to get de-brainwashed.
With current leadership, it would take 1000 years.
By then, Lungu would have retired.
On spot, your Excellency. The tone, the attitude you display is what is needed for this country. We don’t need a change of personnel, we need a change of attitude. China and Asia are successful today because they got past this hurdle. Africa must wake up.
“….Ladies and gentlemen, as a country, we have depended on copper since its discovery. We have been told for years now that copper is a wasting asset and that we should look at other sectors for our survival in future. However, copper continues to sustain our economy and I dare say it will still continue to do so for years to come….” Let’s change the fundamentals people. ECL.
Sad…! He`s coming up with a plan in the last year of his term. Isn`t he supposed to be outlining what he has achieved sector by sector and district by district .
It’s always ‘we must do this… or we need to do that’ – but nothing economically viable really ever happens with this regime. The ‘do’s’ are often when it comes to haranguing the opposition.
Bwana Lungu wasensela ilyo kawa. What were you doing with your corrupt PF government all this time? Kuya bebele no reverse
Its NOT Lungu’s ERP bcoz he’s like a defective tool trying to repair the damage he’s caused.Here in the west we hire turnaround specialists we don’t entrust the job to the same nutters who caused the collapse.
Is Honorable Bowman Lusambo aware that you are launching an economic recovery plan in the midst of a “high performing economy??”.
“there is need for value addition to the resources so that the country produces a range of products from the minerals, gain foreign exchange from such products, and also create further employment for the people apart from mining.” Do it today, better tomorrow. There is no other alternative but to achieve this one.
We acquire and grow our wealth by Insulating the value of our resources from external forces determined by China and other countries by “simply put, encourage made in Zambia.” The price of copper and cobalt will rise and fall at some markets. If you have industries consuming these metals, we can stock pile for our industries when the price of metal falls. I say thank you for saying ‘ there is need for value addition to the resources so that the country produces a range of products from the minerals, gain foreign exchange from such products, and also create further employment for the people apart from mining.” Negativity will not bring us a better life.
The only legacy this crook has to show for is gross mismanagement in all sectors of the country
$27 billion in debt. What plans have they put in place to reduce this debt. When PF came into power in 2011, reserves were $3 billion and debt at $1 billion.
Fast forward a decade and we are in a quicksand. Lundy and his cronies have amassed wealth to unprecedented levels.
Zambia is Fukced. The average joes will suffer. The rich will be comfortable especially with thier wealth being diversified.
This drunkard on record has said “I have no vision”. And here we are facing Armageddon.
I wonder when people will wake up. Zambia needs a change. We have ministers who are uneducated, have no command of communication to general masses.
We have put thieves/ crooks in power
Name me one European country where a thief/crook is a president/prime minister.
@Armchaircritic, I disagree with you. Economy picking up and recovery is measured by what he can take from state coffers! Currently there is nothing to take so he needs to borrow so that he can take!
Imagine Lungu and Kaizer drinking together and Kaizer says thank you humble one snd Lungu replies, birds of a feather flock together! Isn’t it nice?
The problem is that you politicians it be ruling or opposition have vested interest in the mines. You care for yourselves and friends rather than for Zambians. Mwanawasa left a very good tax regime for the Mines which saw the Kwacha appreciating about 80% against the Doller. Just coz you were given some cuts you threw away such a good tax regime for the Mines. Please be consistent , don’t dance to their terms, if they don’t want to share equitably their revenues with Zambians tell them to go if they want. Stick to your lane.