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Economics Association of Zambia regrets plans by ‘Mining Companies’ to cut down ‘Labour and Capital’ injections

Economics Association of Zambia regrets plans by ‘Mining Companies’ to cut down ‘Labour and Capital’ injections

December 11
16:04 2018

By Economics Association of Zambia (EAZ) Board – Tuesday 11 December 2018

President Edgar Chagwa Lungu (centre) shows Economics Association of Zambia (EAZ) president Dr. Lubinda Habazooka (left) the State House fish pond. This was when Dr Habazooka and his delegation called on the President at State House on Tuesday,October 2,2018. PICTURE BY SALIM HENRY/STATE HOUSE ©2018 — with Gift Phiri, Joel David Lyala, Clive Lukulo, Joseph Mutale, Mutinta Tracy Davies, Peter Size, Lauren Lawrence Mulenga and Gabriel Musonda.

The Economics Association of Zambia – EAZ wishes to express deep concern over the statement issued by the Chamber of Mines warning that the new mine tax regime proposed by Government could lead to more than 21,000 job losses and operators cutting $500 million in capital spending over the next three years.

The mining industry remains the most important industry in Zambia and a significant contributor to Zambia’s foreign exchange. The mining industry unlike other industries in Zambia is very strategic and produces goods that are non-renewable. Against this backdrop, it is very important that the sector contributes significantly to Zambia’s economic development through job creation and linkages with other sectors.

Dr Mphuka, former President of the Economics Association of Zambia

EAZ-at-State-House Lusaka

Zambia has one of the most favourable investment conditions for the mining sector in the world. The number of incentives such as electricity and fuel subsidies, tax and non-tax incentives have come at a great cost to the nation. It is therefore unfortunate that the mines remain uncooperative and opposing every time a new tax regime is proposed to enhance revenue collection from the sector which is expected to benefit the citizens.

We would like to express as a concern that employees should not be used as a tool for arm twisting government. The current mine tax regime is archaic and only allows exploitation Zambia’s mineral resources. It is also unfair to reduce mining activities and capital injections into the sector at a time metal prices are favourable. Halting mining operations in Zambia is equivalent to economic sabotage and no other country can tolerate such especially that over 70% of foreign exchange inflows come from the mining industry.

Zambia is not the only country in Africa to tighten its mine tax regime so as to close down any leakages and also enhance mine contribution to economic development. Botswana, Tanzania and recently Congo (DRC) have enhanced their tax regimes with Congo DR increasing mineral royals by 300%.

Economics Association of Zambia (EAZ) President DR Lubinda Haabazoka with Bank of Zambia (BoZ) Governor Dr. Denny Kalyalya and Deputy Governor Operations,Dr. Bwalya Ng’andu

As an Association, we are preparing an advisory note to government to ensure that marketing and sales of mineral resources is done locally so that all foreign exchange flows through Zambian commercial banks.

EAZ Gala Dinner Wednesday 12th December 2018

Issued by EAZ Board Lusaka, Zambia

Tendai Posiana

Macky 2 endorses EAZ Economic Gala Dinner pledging to perform at the event slated for Wednesday 12 December 2018 in a picture with Economics Association of Zambia (EAZ) President DR Lubinda Haabazoka

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Tendai Posiana (Miss)

Economics Association of Zambia (EAZ)

Media and Communications Officer
Cell:+260979 697853 or 0954 932 786
Mail: tendaiposiana@yahoo.com
Mail: secretariateaz@gmail.com
Address: Plot 11 Mwalule Road, Northmead, Lusaka

twitter: @EAZambia
Facebook: Economics Association of Zambia

His Worship the Mayor of the City of Lusaka Hon Miles Sampa. Economics Association of Zambia was represented the it’s President Dr. Lubinda Haabazoka, EAZ Vice President Dr. Austin Mwange, Deputy National Secretary Ms Rita Mkandawire and Executive Director Ms. Mirriam Nachilima.
We discussed a lot of ideas including the need to convert the Central Business District into a 24 hour tourism friendly place. We also pledged to support the Mayor’s office in terms of capacity building for the Council, economic advisory at Lusaka City Level. Our Members will soon be involved in a lot of activities both at City level and National level.

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