Lubinda Haabazoka

Economist Lubinda Habazooka has this to say:

First Zambia doesn’t make any mining equipment so talking about the multiplier effect in the Zambian economy because of $1.2bn is pure naivety.

Most of this money will be spent abroad but a mine in Zambia will have to bear the cost of refunding.

Once you inject $1.2bn into a mine, it means no more paying tax because the expense becomes deductible under capital allowance.
Mind you in this year’s budget, the period for capital allowance was increased from 5 to 10 years of am not mistaken. In simple terms, copper worth $1.2bn will first have to be mined to payback the $1.2bn before the mine considers paying any income tax!

So it is safe to say that we should even forget about thinking of benefiting from high copper prices!

Then the $1.2bn is definitely a loan from somewhere so we also expect the interest payment burden to fall on copper that sits in Northwerstern province.

We have seen these billions announced before at Mopani. I think it was $1.3bn but no one in Kitwe and Mufulira saw that money.
I think we should not be naïve. This is 2022. We have a well-educated citizenry. But if you look at this from political lenses, you won’t pick anything.

Switzerland will continue developing while you continue having kandolo at breakfast.

The illicit financial flows and transfer price plus accounting tricks used to go around tax payments in Zambian mining sector is far much more than those tuma small corruption cases we pursue against our own citizens!

4 COMMENTS

  1. ANOTHER MIND HAS SPOKEN THE TRUTH.UTOMFWA PATUNONO TAKONFWE PAFINGI.

    I THINK MY HEART IS AT PEACE NOW AND ALL WE NEED TO SEE ARE THE RESULTS OF THIS DEAL.

    FIRST QUANTUM MINERALS EMPLOYEES ARE THE ONES THAT ARE ACTUALLY PAYING TAX CURRENTLY AND NOT THE MINE KA? SO EXPECT MORE LOW WAGES SO AS TO CUSHION THE LOAN THAT FIRST QUANTUM MINERALS HAS GOTTEN TO INVEST IN KANSANSHI.

    MOSTLY THESE WAGES WILL BE EXPECTED TO COME FROM KALUMBILA MINERALS BECAUSE THIS MINE SITE ISNT MONITORED BY ZCCM.

    THEY SAY KANSANSHI AND KALUMBILA ARE SEPARATE COMPANIES UNLIKE WHATS PEOPLE ACTUALLY KNOW.

    THEY HAVE FOOLED THE ZAMBIAN GOVERNMENT FOR YEARS NOW AND THEY STILL FALL FOR IT.

    EMPLOYEES ARE THE ONES THAT WILL BE UNDER PRESSURE WHEN IT COMES TO TAX BELIEVE ME.I HAVE SEEN THIS MOVIE BEFORE AND I AM STILL FEATURING IN IT.

    PEOPLE AT THIS MINE HAVE BASICS AS LOW AS K3800-K5800 YET THEY STILL EARN BELOW THEIR BASICS.

    I KNOW OF UNQUALIFIED AND RACIST EXPATRIATES THAT EARN $20,000 A MONTH PLUS K30,000 CAR MAINTENANCE,K5000 WEEKEND ALLOWANCE AND K5000 WORTH OF AIRTIME THESE MONIES ARE EARNED JUST FOR DOING NOTHING EXCEPT DRINK COFFEE, SMOKE AND MISTREAT ZAMBIANS.

    TRUST ME THIS HASNT EXCITED ANYONE THATS ON THE GROUND ESPECIALLY US THAT ARE WORKING WITH FIRST QUANTUM MINERALS.

    WE THOUGHT THE NEW DAWN GOVERNMENT WILL BRING A COMPETITOR THAT WILL BETTER THE LIVES OF PEOPLE MOMBA AUWE KUWAYAWAFYE NABO BAMUDALA.

    ITS A PITTY THAT ALOT OF MINERS ESPECIALLY US THAT ARE HERE FEEL BETRAYED AND CHEATED.WE ARE DEMOTIVATED AND I WONDER HOW PEOPLE WILL ATTAIN YOUR PROJECTED PRODUCTION.

    MINES ARE ON HOLIDAY YET MINERS ARE STILL PAYING TAX.HH TELL US WHAT STRATEGY YOU USING PANTU ITS DEMOTIVATING MWANDI.

    AT THE END OF IT ALL THESE GUYS WILL DECLARE LOSSES AND CLAIM FROM US PALASTI.

  2. I have noted that some of our citizens waste much time talking things that may not even benefit efforts being made to revamp the economy. Investment plan in our mines cannot be discussed just is one paragraph or two. If one has a proposal, let him engage the Ministry concerned and try to contribute your best inputs other than misleading statements.
    The picture being painted does not help at all

  3. At the end of the day, let’s just close the mines and forget about it with this kind of thinking. Because all the companies whether it’s mining or any other, import equipment because we don’t manafacture any equipment so I don’t know if people want companies to deposit the money which intend to invest at BOZ instead of buying equipment necessary to increase production for them feel the so called benefit of the investments.

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