Communities should benefit from investors

Thu, 29 Jun 2017 14:11:59 +0000

By CHITE MTONGA

Communities that host mining investments should also benefit from the country’s mineral wealth says center for trade policy and development Acting Director Issac Mwaipopo.

Mr. Mwaipopo said that the amendment of the Mines and Minerals Development Act was critical if the country was to realize the aspirations of the recently launched 7th National development plan which seeks to improve the quality of every Zambian as envisioned even in key continental initiatives such as the African Mining Vision (AMV)

He said that it was disheartening to note that at the mention of mining in Zambia the focus and conversation among policy makers was narrowed down on how to create an enabling environment for investors with little to no attention paid to how communities that host mining investments can also benefit from the country’s mineral wealth and live in a conducive environment.

“It is out of this background that we call for an amendment to the 2015 mines and minerals Act so as to reinstate the provision for a mineral revenue sharing Mechanism to enhance opportunities for communities which play host to mining operations to benefit from the extraction. In addition we call on Parliament to develop guidelines that would help ensure effective implementation of the mechanism,” Mr. Mwaipopo said.

He said that a recent study by Tax Justice Network Africa (TJNA) in partnership with CTPD focusing on progress made towards domesticating recommendations of the Africa mining Vision (AMV) found that Zambia was lagging behind other major mineral dependent African economies in aligning its national policies, laws and frameworks to the continental Vision.

Mr. Mwaipopo said that the absence of clear policies and systems to curb mining company’s practice of declaring the bulk of their investments as debt is eroding the country’s tax base.

“The failure of Government to put in place a clear “ring fencing” policy in the country’s mining sector is regrettable. The purpose of such measures is to maximize taxes payable by mining companies,” he said.