2023 NATIONAL BUDGET PROGRESSIVE- CHAMBER MINES

… as Sokwani Chilembo says the National Budget measures will help to revitalise the mining industry

By Scoop Reporter

THE Zambia Chamber of Mines has reacted positively to the 2023 National Budget announcement, saying it places Zambia as a key mining investment destination.  

Chief Executive Officer Sokwani Chilembo says the National Budget pronouncement indicates that Government understands the investors needs to grow the economy.

“The budget pronouncement shows that the Government clearly understands what investors need to commit to Zambia. Taken together, the budget measures are likely to be viewed as an encouraging move, although we will know more once the details have been fully analysed and the attendant legislation is finally passed”, Mr Chilembo said.

He said amending the mineral royalty tax to be calculated on an incremental or sliding scale basis will start to bring Zambia’s tax regime back in line with other mining countries.

“We have long identified the royalties’ regime as a stumbling block for investment into Zambia. Not only are our rates higher than any of our competitors, but the regime operated in a way that deterred miners from producing at higher prices which was ultimately harmful for everyone. We are pleased to see the Government follow through on its promise to reform some of these impediments to growth,” he said.

The Chamber also applauded the measures promoting exploration and artisanal mining as well as the establishment of a mining regulatory institution saying investors wanted to see a fully capacitated regulator that could manage its administration in a timely and effective manner.

“The measures announced will start to bring Zambia back in line with the rest of the mining world – we now have a case to market to the world’s investors. We all need to study the numbers, to see how these measures shift the effective tax rate and how that compares with our competitor jurisdictions.

“As the relevant bills go through the parliamentary process, our members and the global mining investment community will study the implications in detail but we can confidently say that this has been a good day for Zambia’s mining industry and, by extension, for the country’s economic trajectory. When the mining sector succeeds, so does Zambia, and we look forward to seeing this new chapter in the country’s history unfold,” he said.