HICHILEMA MUST REVISIT MINING CONCESSIONS
The solutions to Zambia’s problems lie within the framework and borders of this country, and we have regularly illustrated how this can be done.
We have on several occasions advised Mr Hakainde Hichilema and the UPND government on the urgent need for them to pay a lot of attention to the taxation of our mines. Clearly, we are losing out so much, and it’s sad to watch. We definitely need to get our act together and get fair taxes from our minerals.
There was absolutely no need for Mr Hichilema and the UPND government to be in a rush to give away our minerals to foreign transnational mining corporations for next to nothing. All these mining firms like Anglo American, Anglovaal, Glencore, Vendanta and other mining corporations are interested in our minerals because there are huge profits to be made now, and in the future.
Yet when we advise Mr Hichilema and his league to revisit the mining concessions and tax waivers to improve dollar inflows to the treasury, and the economy at large, they never take our advice or act on it. They know it all and continue to pursue impractical and irresponsible policies.
But here is the reality:
Do you know that US$2 billion of tax waivers per annum can employ 3 million farm workers? This is the reality on the issue of tax incentives. Do you also know that it takes 180 pounds of copper to make a Tesla or other electric vehicle? This is five times the amount of copper needed to make a combustion engine motor vehicle. And it takes 450 pounds of copper to build a normal house, once you include electric appliances, wiring and fixtures. If you put solar panels on it that will take another 100 to 150 pounds of copper wiring. A solar farm used to generate energy requires five times the copper it takes for an equivalent natural, coal, or nuclear power plant.
Truth is, if we are going to turn our cars into electric vehicles, we are going to need a lot more copper over the next ten years. If we are going to build houses for all the millennials – the largest generation on the planet – we are also going to need a lot more copper. If renewables, such as wind and solar power, are used to build those things and supply energy then we will still need a lot more copper.
Under these circumstances, it does not and will never make sense to give tax breaks and other unnecessary incentives to transnational mining corporations. Yet we want to be visiting Western capitals with a begging bowl for help as though we can’t think, plan and see. Why would we do that? The UPND has certainly not acted wisely on this matter. And we can think of no reason why a government would do this, unless it was acting out of ignorance or corruption, or both.
But by so doing, Mr Hichilema and the UPND government are depriving Zambians to improve their well being; through the provision of improved salaries, infrastructure, social amenities, education, health and so on and so forth.
We again ask Mr Hichilema to heed our call, and act on these solutions with immediacy.
Dr Fred M’membe
President of Socialist Party
Does Mr. Mmembe do research on things he talks about or does he just wake up and start commenting? Which concessions is he talking about? Does he know that mines are the highest taxpayers at the moment in Zambia? For his information, FQM alone in 2024 paid over $2.6 billion in economic contribution to Zambia in the form of royalties, local procurement, employee wages, and community investments. They are broken down as follows, $650 million in taxes and $1.75 billion in local procurement contracts. What more does he want the mines to contribute? If he thinks mines are having it easy, let him open so that we can see how he can fare running it, then maybe we can listen to him when he talks after that.
The man has even failed to note that all firms will now subject to turnover taxes such that any existing loophole will still be subject to turmnover tax….
Ba M’membe convert the ”Pounds” to Kilogrammes please for an ordinary Zambian to follow your lies.