Zambia’s revenue from exports will probably increase 40 percent to $10.2 billion this year from a year earlier, with copper exports climbing 46 percent.
According to the Bank of Zambia (BOZ) fortnight update, the forecasts are based on copper exports increase by 46 per cent.
Copper exports revenue are projected to increase from 5.7 billion dollars last year to 8.4 billion dollars this year.
The central bank has noted the higher volumes of copper shipments as well as the obtaining international commodity prices for copper.
An increased trade surplus has also been projected and quoted at $4 billion from $2.55 billion
where are the PF empty heads to dispel this??? I’m sure ka Wynter would even want to take this matter to court.
And you think is the Zambian government which benefits? you fool! it’s the investors who pays almost nothing to the government. The little they pay is diverted to MMD campaigns
Why should it be dispelled? We have plenty of copper underground. Digging it up doesnt mean the MMD is working. 8.4 billion should work for the people who live in Zambia not for foreign investors.
8 billion dollars with no development? But kwena iyi ni nonsense mukalamba! You even boasting? Show us the development not fye fi paper work lyonse!
Yah, but how much is going to come to Zambia???? We (they) may export a trillion worth of copper but Zambia will never benefit in good proportion as long as some political party continues to mis run this nation. how unfortunate. We are as good as a person who sells his own organs (never replaceable) for a song. Might as well give them for free.
yes thats good news but how do the owners of the country get to benefit from such profits??????Any reasons as to why today, we have no modern equipment in some hospitals especially those in rural areas??? no fire equipment in rural areas, the recent tragic accident in Nyimba from the postings i read and saw, there were no fire engines, ambulances, etc. All I saw was so called Police and govnt officials visiting the accident scene. Lets share the national cake without any favours bane!!!!!!!!!!!!!!!!!!!!
Bank of Zambia is not telling us how much the mines will sell and how much they will pay in TAXES excluding PAYE because that is the employees paying to GRZ.
PF government will ensure that the real owners of copper will get a lion’s share unlike the current regime that is letting the mines plunder our resources without giving to Siza what belongs to Siza
Good to hear..But does this translate to national economic development and how is every Zambian going to benefit? We have heard and we continue hearing about such appealing figures but no direct benefit to indiginous Zambians all we see is increased Chinese population in our country..Can someone help explain this “good news”
I was in UTH last week to do some blood tests. I was baffled when some patients were told that the machines that do certain tests were not working! The alternative was to go to some private labs where they will pay 300,000/400,000 kwacha.Â
This shows how rich this nation is!! But unfortunately, MMD has terribly missed this opportunity to tap from all that revenue for social develpment. We need PF team who can seize up this income for national development through proffesional fiscal management. Iam sure Dora and RB’s sons are smiling, while the children in Kalabo, Milenge, Kaputa, Chama, Namwala, Chavuma are walloping in abject poverty. May the Almighty God save this country from thieves and corrupt regime. Mwebantu, Lesa tapela muminwe, apalamika fye. Its time for people of Zambia to redeem themselves!!! VIVA PF.
This news is only good to the investors (infesters) because RB’s MMD is scared to tax enough to benefits us Zambians by birth and descent.
No 7
Simple economics. 60% of that revenue is input cost which comprises
1. wages
2. vat
3. paye
4. royalties
5. taxes
6. other indirect taxes
Positive balance of payment means we are producing more than we are importing which will be good for the kwacha.
If thats not good news ….. you can wait for the 90 day miracle
Sir, you are misleading people. The bulk of the input costs are incurred on machinery; which is not made in Zambia. The overall spend in Zambia is primarily on local taxes (which you have listed as 2-6) and a proportion of the labour (1). so, as you have rightly pointed out the bulk of the mining revenue does not come to Zambia.
Please sir enlighten us on the remaining 40%. what do you call that?
Bane, let us evaluate the news in its context. For people rushing to comment, all that this announcement means is that the copper mining companies are going to sell more copper and at a higher price than before leading to an increase in their income. It also means that as a country, Zambia will export more than it imports. What is important however, is the fact that the copper mines are owned by foreign companies; which will not bring the profits to Zambia. Yes they will pay some taxes and also salaries e.t.c. The benefit to Zambia is very limited; this was the reason why KK nationalised the mines – so that profits could remain in Zambia. For Zambia to benefit more, we should increase taxes and other levies charged on the mining companies as well as setting up a new Zambian mining company.
That is good news for us, but we would collect more with Windfall tax in place.
You never sore to higher profits – you SOAR as in soaring like an eagle. You numbskulls. In any case there has been a reported 1.2pc drop in copper production in the last two months or so… Is this the proverbial optimist veering off course from reality?
LT your headline should read “soar” not sore.You make my linguistic senses sore with that headline.Even that sum makes me numb just knowing how much the Chinese are milking us.Externalising forex earnings will soon be our biggest export.
These are signs of what is to come!!!Zambians soon will start receiving major FDI and more investors will start partnering with the locals.Zambians must step up to the plate and desist from being arm chair critics and start participating.Not the more money in your pockets conondrum by the King Cobra.Some open minded zambians have already started reaping the devidends while others wait for more money in their pockets while hight on ”Tujilijili”!!!
No 16
Good point… some of us are already benefiting in person and not waiting for wind fall tax. raises US$9m from OZ invested 3 yrs ago with a few Zambians on the ground and guess what we are laughing all the way to the bank.Â
These are revenues coming to mining companies. We are more interested to hear how much government will earn in form of taxes from there.
Who cares
The country is riddled with debt , How about talking about how much debt the country owes as well. If you have an incom of $8.4 billion and a debt of $50bn, as zambia has, I am afraid you are still struggling.
The optimicism here is pathetic , the coutry is a joke
I am still not coming back, I am afraid
Thanks
It’s ok girlo I’m going back, you can stay but please don’t gonto these nursing homes you will be abused.
My dear friend Mushota, even when Zambia was a highly indebted country, the debt stood at $7 billion while GDP was under $2 billion. Much of that debt was written off or renegotiated. The government aims at keeping debt below 2% of GDP and borrowing for investment and not consumption like KK did. The UK debt is now at $900 billion, Greece $300 bilion, USA $1.4 trillion. This is the end of capitalism as we know it. China has no debt and is owed $1 trillion by USA from bonds. From where Zambia was, the prospects are brighter than ever before and not to mention the vast fertile land not owned by MOD or Her Majesty as in UK. Keep your Zambian citizenship dear, you will need it. Advice costs nothing.
Lady Mushota, dont dream figures. You are misleading yourself and a few brain clogged zedians.
To my knowledge Zed had US$7.2Billions debt which has since been cancelled by International community by 2008. So RB has borrowed US$50Billion between 2008 and Today? shed more light pse to those who trust yo blogging here.
This is just revenue. Costs have not been put in the equation. Zambia benefits from taxes, direct and indirect employment and business growth from suppliers…etc. Dr. Musokotwane already explained that the mines are now profitable and will be paying more in taxes. Don’t forget these mines are now audited heavily and are therefore unlikely to cheat on their taxes.
You want to become rich, start an auditing firm. Mr. Hakainde Hichilema with his Grant Thorton recently declared assets of K44 Billion Kwacha, I am sure he reaped benefits from the Mopani audit which govt requested Grant Thorton carry out.
HH no longer runs Grant thornton
If H.H committed any crimes then why did Levy or the task force not visit and arrest him for the past several years.
You do not have any proof and accusations put you in the same basket as Sata.
Use MMD will be gone this year.
Then who will you bark for?
Mushota, Zambia does not have a debt of $50 Billion.
# 11 the Engineer…You haven’t answered my question ..how is every Zambian going to benefit? If you presented your figures to people in Chief NaBwalya in Mpika are they going to understand? People are not interested in figures but food on their tables (3 square meals per day). Education is useless if it cannot be utilized to bring about change in people’s lives.I agree with # 12 the Zambian.
SHIMPUNDU YOU CAN DO BETTER THAN THIS!
#19 Mushota uli wabufi. Muleitilako amenshi kubufi bwenu ala! You are such a liar! Who said Zambia has debt of $50 billion?
Some people still think nationalisation is the answer. Those days are gone, even if in an unlikely event that PF came into power, the way to go is the current direction of the private sector propelled economy. Even the communist chinese have now come to terms with this fact. To imagine that you can reap heavy taxes from the mines and still exepct them to continue operating is tanatmount to having your cake and eating it. The way forward is for Zambians to come to terms with this and participate by providing auxiliary services or get employed and empower your famillies to start with and the nation will benefit. The 90 day syndrome will just eat you up. These indicators are very important as there is no nation that develops or collapses without indicators. GOD BLESS ZAMBIA!!
Mr Bond, when you refer to nationalisation, you are probably responding to my comment at #12. All i was doing was giving a historical context to the nationalisation of the mines in KK days. I am not advocating the nationalisation of the existing mines – yes it is too late; however, what I propose is that we establish a Zambian copper mining company as is the case with Chile which has the largest copper mining company in the world – Codelco. It is a national mining company, why can we not establish one or restructure ZCCM so that they can invest in a new copper mine?
# 20 the Capitalist how do you say if you want to be rich start an auditing firm….this is the kind of thinking we don’t want coz not every Zambian is an auditor osr economist…what about other careers? Think about the suffering majority in rural Zambian let’s not be selfish. Zambia is for all Zambians!
@ #25 shimpundu Pabwato.com
I did not say starting an auditing firm is the ONLY way to be rich. My comment is meant to encourage innovation. If you stick to path dependency, you’ll not progress. There is nothing wrong with wanting to be rich as long as you do it legally and ethically. It is not being selfish. There is nothing unethical about starting an auditing firm.
Even someone in the rural areas can start a fishing firm by owning 5 boats and using them to fish and earn income. He could be rich if he innovates. I am encouraging innovation. If you are not innovative, you’ll watch opportunities pass you by and accuse rich people of being selfish.
All based on “probability” and silly Economist’s forecasts; how much of this is tax going to ZRA, if say Mopani Mine exports $1 Billion worth of  bars of copper, isn’t that recorded as the country’s export revenue even though in reality owners Glencore has deliberately undervalued the price to pay less tax.
 Why not have economic policies that encourage exports in non tradition sustainable products, Global Hedge fund managers are currently buying massive chunks of Agricultural land in Africa. Why? So they can grow plants like soy, rapeseed, jatropha, mahua, mustard, flax, sunflower, palm oil, hemp, field pennycress, pongamia pinnata  etc. as these are plants used in production of Biofuels (that’s the future cleaner fuels) Crude Oil is not sustainable no future (get it).Â
ZAMBIA RANKED 3RD IN AFRICA -Zanbia has been ranked the third most cost – effective country among other African Countries and awarded the African country of the future 2011/2012 by Foreign Direct Investment Intelligent Magazine.
FDi Intelligence Magazine is adivision of the prestigious British news company, the Financial Times which specialises in FDI – ZDM; 18/08/11.
We are not interested in forecasts we are more interested in what’s coming our way in relation to the actual price on the market. If I sell a scone for 50 pence I have to work out how much is Costs and Profit.
Zambian Journalists today are a lazy bunch and are intimidated by these economists with their titles; probe them to give you simple articulate answers not Jargon (nothing wrong with that). BOZ should not give us forecasts which based on performance of copper price on the market instead should suggest ways in which we can efficiently collect revenue from our natural resources.
@28Â
Read between the lines my friend and ask yourself about the readership base of that prestigious British magazine. Who reads it? The Investors of course, so now ask yourself this; who is it cost effective to? In other words who is getting a better deal your grand children or the Investor’s.
This is good news but how much tax as a percentage of the total sales/exports are the mining companies paying to the Government.?
This article lacks details. Is theis the revenue from tax or the total export revenue or what does the figure represent? Zambian analysis… “News Flash: Copper is worth a lot of money”
….and if only somebody can give us good, more permanent, standard roads and highways pa zed please
can you imagine how much that money could accomplish if it were to come to Zambia? But alas we remain with empty craters and the money goes to develop other economies. We remain with crumbs and can brag about it. its a shame. That why God help us we need Sata at the helm to address some of these imbalances. Vote wisely guys
But where is the prohected earning for Zambia?
Only with Sata will you expect gains- Your RBish is beneffiting already with no worries at all.
Sorry, readers, I meant the projected earnings for Zambia, When you give us such figures for the mines u must also give us what zambia’s govt will benefit for infrastructure devpmnt. The next govt should plan based on the projected earning. Anyway PF will putv things strait in mining taxes bvy next yr.
These statistics are not feeding us well. How come the Kwacha is still weak against major currencies. I will believe that things are positive once the Kwacha start trading at K2,500 to a dollar. Dr. Fundanga you have to tell us why the ZMK is still weak.
indicators of economic growth,indeed we are growing,with so many jobs created,vote RB
THAT REVENUE IS NOT BANKED IN ZAMBIAN BANKS BECOZ BANK OF ZAMBIA HAS WEAK MONETARY CONTROL POLICIES. ONLY A SMALL PERCENTAGE IS BROUGHT BACK FOR RUNNING COSTS. THE REST IS BANKED IN SWITZERLAND, CHINA, ETC. IF THIS $8BN WERE BANKED IN ZAMBIAN BANKS, OUR BANKS WILL BE FORCED TO LOAN IT OUT TO PRIVATE COMPANIES & INDIVIDUALS AT LOWER INTEREST RATES & THIS WOULD TRANSLATE INTO MORE TAXES, MORE JOBS & LATER GOVT WOULD HAVE ENOUGH FOR INFRASTRUCTURE DEVLPMT, HEALTH, EDUCATION ETC.
I am happy with several bloggers comments. A lot of people now realise that the revenue that BOZ tells us about is not revenue for govt coffers. When several citizens start understanding such fundamental practical aspects of running a country then we are on the right path. Next is to understand that we need to scrutinize candidates who aspire for public office. Do they really have anything better to offer to improve the country and the people’s standard of living. Govt has not changed any tax law so be assured there will be less improvement in terms of revenue from tax. And all the money from Copper sales is banked in Europe and not Zambia.
Someone to help me I am not an economist and I don’t even understand it. what does it mean if you say the country is exporting more than importing? In addition to that, why does the kwacha keeps on depreciating? I need the answer from engineer who is seems to be an economist for MMD.
most of this bloggers have no common sense,this is revenue realised by the govt,through royalty,although the article is not explicit,it cannot be the total revenue of the mines,mines are producing 1.5m tonnes of copper whose price on the lme is $7,000/tonne you guys do the math.we need a windfall tax so the country better benefits from this commodity boom.this does not last for ever china economy is overheating so it will come down with a thud along with copper prices,make hay while the sun shines for surely there will be rain soon
with these billions we can build genaral hospitals and clinics country wide, build rail network, invest in energy, etc……but we know the story and what will happen, nothing.
We serious need transparency in how much tax is actually earned from the revenue generated from copper and gold sells. It is clear that the ordinary Zambians are not benefiting from the copper boom. If i import a simple dotcom vehicle, I am heavily taxed. Yet Mine operators are taxed next to nothing on the revenue they are generating from our copper. We serious need leaders that are going to think of us least we ‘ll continue to be the among the poorest rich people in the world.
We serious need transparency in how much tax is actually earned from the revenue generated from copper and gold sells. It is clear that the ordinary Zambians are not benefiting from the copper boom. If i import a simple dotcom vehicle, I am heavily taxed. Yet Mine operators are taxed next to nothing on the revenue they are generating from our copper. We serious need leaders that are going to think of us least we ‘ll continue to be the among the poorest yet rich people in the world.
#38 has raised a good point about the kwacha being weak.Honestly if the economy is improving why is the kwacha not gaining value?
The question is , how much will Zambia get? They talk of  billions which never comes back to Zambia, because they are  externalized, and the MMD government supports this arrangement.The Engineer talks about export and import balance, how do you account for the money which never makes it back to Zambia in the export and import equation? This the reason why the Kwacha is weak Â
Zambia shall be saved #47, your comment is valid if you are a pure consumer. Without being an expert economist, you must realise that most of the countries that wish their currency was strong are those that are highly consumer-based. Most producing countries are very, very worried when their currencies strengthen because it hits their export capacities and therefore their forex earnings. Have not followed the Switzerland dilemma??? They are worried about a strengthening Franc because that will make them less competitive. Lets debate production, not travelling to other countries with a strong Kwacha to buy goods we can produce ourselves…
All you *****s who are busy singing praises should realise that none of that revenue actually accrues to nation’s treasury. The mines being privately owned entities dont even bank that revenue locally & only retain a negligible portion for tax payments & opex….thanx to the foolish policy of allowing foreign owned firms to externalize up to 80% of their revenues. This s*** can only benefit us if these f***** were forced to retain 80% of all revenues generated from mineral exports, till then only mindless fool would get excited about these academic statistics. If dat were to happen, believe me, da ZMK wud gain value and lending rates would fall which, in turn, wud creative easier access to business financing for local investors who are in desperate need of the same. I rest my case!
The Australian Engineer, you are a half baked engineer if you, you must be a NORTEC technician pretending to be an engineer C.H.I.K.A.L.A. chobe stanyoko. I see you comments on every article posted on this blog and I wonder what time you spend on your engineering work. We the real engineers we know the actual operating costs of all the mines in Zambia and we can blow our trumpets to say most mines operate at $1.5 per Ib which translates to
$3310 per tonne and with the current price of $9000 per tonne , this is not 60% as you said tole lyobe, what we are demanding as right thinking Zambians is to collect at least 20% of these $5700 per tonne profit margin for our poor people languishing all over the country.
Aya ma billion yamene sitiona ise ovutika yachokela kuti mu August before the financial year has even ended. Ati Propaganda!
@ #40 knuclehead, you have hit the nail on the head. I live in RSA & have seen what capitalism can do for the private sector. Anglo American, De beers etc. bank all their monies in RSA, not switzerland or Bahamas because SA Reserve Bank has tight monetary policies. The local banks have alot of money which they loan out to firms & also people to buy houses with 20 year mortgages, flashy cars etc.
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