NAVIGATING ZAMBIA’S MINING QUAGMIRE. A CALL FOR REFORM AMID ECONOMIC UNCERTAINTY – Edwin Lifwekelo

NAVIGATING ZAMBIA’S MINING QUAGMIRE. A CALL FOR REFORM AMID ECONOMIC UNCERTAINTY

Lusaka… Thursday July 18, 2024

Zambia’s mining industry is grappling with a range of challenges, and the absence of clear policies is transforming mining into a hazardous activity.

The resurgence of Vedanta Mining as a major player, coupled with mining houses wielding significant influence after financially backing the ruling UPND, prompts us to question the true state of affairs concerning Zambia’s mines and its policies.

We wish to state over and over that vandeta has no capacity to revive our mining industry.

The riots witnessed in Chingola yesterday by jerabos is a wake-up call on the part of government to put in place sound mining policies that should have sound policies that impact automatically the lives of many marginalized Zambians.

Global Lessons: The Democratic Republic of Congo Our counterparts in the Democratic Republic of Congo have faced substantial challenges in mining due to questionable policies. This has resulted in severe consequences such as environmental degradation, human rights abuses, and community unrest.

It underscores the importance of robust policies and ensuring their adherence for a responsible mining sector.

A Matter of Urgency

In addition to these global examples, Zambia confronts its own set of challenges. Insufficient oversight and the disproportionate influence of major players like Vedanta raise concerns about the fairness of Zambia’s mining policies by government and until we start believing in our own indigenous zambians to run our mines,we shall continue doing a desevice to our mining industry by entrusting foreigners instead of zambians to run our mines.

The involvement of these influential mining entities in supporting the UPND adds complexity to the situation.This circumstance demands immediate attention. Zambia’s mining sector, pivotal for our nation’s economic health, requires substantial reforms to avert further financial instability. Understanding the nuances of global examples and recognizing the challenges posed by Vedanta’s resurgence and mining house influence is the initial step toward securing a more prosperous future for Zambia.

The Economic Toll

A $2 Billion Drain and a Struggling Kwacha

Watchdogs like Transparency International and Global Witness have shed light on the detrimental impact of Zambia’s mining policies. These policies, laden with tax holidays and evasions, result in an annual loss of up to $2 billion for the nation.

This staggering economic hemorrhage, combined with the lack of revenue, has catapulted the Zambian Kwacha to the unfortunate position of being the world’s worst-performing currency in 2023.

This stark reality further emphasizes the urgent need for reforms in Zambia’s mining sector. The current trajectory, marked by financial losses and economic instability, is unsustainable. Revisiting and reshaping mining policies is not just a choice; it’s a necessity for the economic well-being of Zambia and the prosperity of its citizens. Government has lost an opportunity to seriously revamp our mining industry through robust policies that can bring back confidence on the Copper belt.

ZAMBIA, DESERVES BETTER

Edwin Lifwekelo

PF Media Director
Lusaka, Zambia