FIX THE MINING SECTOR, STOP BLAMING THE PREVISOUS PF GOVERNMENT OVER CHALLENGES IN THE MINING SECTOR, BANDA URGES FINANCE MINISTER, HON. MUSOKOTWANE.
Lusaka… Tuesday November 28, 2023
The Advocates for National Development and Democracy (ANDD) says it is morally wrong and illogical for Finance Minister Dr. Situmbeko Msokotwane to continue blaming the PF administration that they destroyed the mining sector.
Dr Musokotwane is quoted as saying Zambia wouldn’t have had any mining company left had the UPND government handled the mining sector the way PF did.
But ANDD Executive Director Samuel Banda says what Zambians are looking for at the moment are solutions and not blame games.
Mr Banda said the UPND was voted into government because they promised to fix the country.
“It is very clear that the people of Zambia voted for the UPND on the premise that they will offer solutions to challenges the country is still facing. What Zambians are looking for solutions and not blame games. The Minister of Finance and National Planning should at all costs avoid blaming the previous government but rather find solutions to address the challenges in the mining sector as it contributes largely to the growth of our economy,” he said.
“Apparently, as a country we are facing extreme economic challenges, high cost of doing business, low liquidity in the economy and our national currency is not performing well currently trading at US$1 to K23.88 and this is largely because our mining sector is not performing effectively and efficiently both in terms of production and exports. There is also low productivity in the mining sector due to the operational challenges at Konkola Copper Mines and Mopani Copper Mines and due to the fact that the government is too slow in implementing progressive mining policies aimed at enhancing productivity in the mining sector.
A few weeks ago, the Bank of Zambia Governor indicated to the public that we don’t have enough forex to sustain the value of our kwacha.
We agree with the Bank of Zambia governor, we don’t have enough Forex to sustain our national currency value because we are not exporting enough Copper to earn Forex due to the challenges in the mining sector. Raising the Monetary Policy Rate from 10% to 11% is not a good economic intervention, that is actually acutely shrinking our domestic economy.
We expect the minister of finance and Bank of Zambia governor to implement policies that will grow the economy, improve the living standards of Zambians and reduce the cost of doing business to promote trade and commerce.
The sound economic intervention to arrest the depreciation of Kwacha is by increasing copper and other mineral production and exports to generate more forex.
Government should be proactive and invest more in the mining sector to optimize economic benefits, not just in terms of earning more forex but to create the much needed employment and business opportunities for local suppliers and contractors.
Mr Banda said in as much as ANDD appreciates the efforts by government in revamping the mining sector, they are concerned at amount of time its taking for the legal transition process of Vedanta – Konkola Copper Mines deal.
He indicated that KCM being one of the strategic national assets, it is profoundly important it begins to operate at an optimum level to increase Copper Production and exports.
“We want to advise the Minister of Finance that raising the policy monetary rate from 10% to 11% percent is not a good economic intervention to arrest the depreciation of the kwacha. We need more forex! Raising the policy monitoring rate is just harming our economy and may further result in an increase in poverty levels, cost of living as well as cost of doing business,” he added.
“This increment however, is killing small businesses who are the key drivers of our country’s domestic economy and because of high interest rates, it is painfully difficult for them to access loan facilities (financial capital) from financial lending institutions to expand thier business portfolios .
And for those with loans, they will find it difficult to repay because the interest rate has been increased and already they are struggling to operate effectively and efficiently due to high cost of doing business.
He since challenged the Minister of Mines Hon Paul Kabuswe to work closely with his Finance counterpart to ensure that they unlock KCM promptly by finalizing the Vedanta KCM transition process. Unlock Mopani Copper Mine also by expediting the negotiations process with prospective investors.
He emphasized that government should finalize the transition process at KCM so that the mine can be up and running to address some of the socioeconomic challenges our country is facing.