Chamber Of Mines Welcomes 2022 National Budget

Zambia Chamber of Mines president, Godwin Beene, says the 2022 national budget measures announced last Friday, should be seen as a step in the right direction towards the full reform of the mining tax regime.

Dr. Beene noted that prioritising the urgently needed removal of the mineral royalty taxes non-deductibility by the Minister of Finance, Situmbeko Musokotwane, is a clear indication to the world that Zambia is once again open for business.

“I am certain that the world’s mining investors will start to look at Zambia afresh after today. And this is what is needed if we are to see minerals germinate and allow the government to reach its ambitious target of increasing copper production to three million tonnes per year,” he said.

Dr. Beene added that the reform of the Zambian tax code will see renewed interest from both local and foreign investors and could lead to new mines reaching high production levels over the next five to ten years.

He observed that with the right stabilising policies in place, the new measures could completely change the country’s development trajectory.

“We do understand that the Finance Minister’s immediate priority was to stem the outflow of reserves in order to meet the nation’s debt obligations. But this is a refreshingly prudent Budget, and most definitely a step in the right direction,” he said.

He further noted that work is needed on tax reform, along with guarantees of stability, if Zambia is to attract the investments necessary to triple copper production.

“But with this hugely positive early signal, the mining industry stands ready to work collaboratively with the government in its endeavour,” he stated.

This is contained in a statement issued to ZANIS in Lusaka late last week.