UPND IS TAKING US BACK TO COLONIAL AUTHORITIES-MBITA CHITALA
“We were also hoping that the return of Mopani and KCM to government would herald a progressive policy direction initiated by president Edgar Lungu but it appears the UPND will be taking us back to the situation of 1964 where Zambia will have no shareholding or controlling interest as is the shameful case with Kalumbila Mine where Zambia has zero shareholding”
WE NEED A DEVELOPMENTAL STATE LED BY PATRIOTS – CHITALA
Lusaka, Tuesday, July 11, 2023 ( The Mast)
MBITA Chitala says Zambians should find a leadership that will protect natural resources such as minerals for their benefit.
In his write-up titled: Zambia needs a developmental state and leadership, Dr Chitala fears that the current government is protecting foreign interests over national when it comes to mineral wealth.
“We were also hoping that the return of Mopani and KCM to government would herald a progressive policy direction initiated by president Edgar Lungu but it appears the UPND will be taking us back to the situation of 1964 where Zambia will have no shareholding or controlling interest as is the shameful case with Kalumbila Mine where Zambia has zero shareholding,” he said.
“Such a public policy approach would continue the de-industrialisation and exploitation of Zambia as this neo-colonial path will never allow Zambia to accumulate investable surpluses and build a strong middle class to address decisively poverty eradication, inequality and backwardness in our country.”
He explained how Dr Kenneth Kaunda’s government tried to protect minerals despite being fought hard by foreign forces.
Dr Chitala said the UNIP administration ensured the country benefited from minerals.
“For our country to start in earnest addressing poverty eradication, inequality and backwardness, we need a developmental state led by patriotic Zambians who will facilitate capital accumulation on an expanded scale,” he explained.
“The closest we got to this was when president K. Kaunda nationalised our copper mines in 1968 and established buoyant parastatal sector that built a strong middle class through ZIMCO, INDECO, ZCCM, FINDECO and so on, exactly like South Korea, China, Singapore, Malaysia did. Unfortunately, Kaunda failed because of the global oil crisis and the drop in prices of our base metals engineered by finance capital. We again tried when president Levy Mwanawasa introduced windfall taxation of mines, but again failed when president Rupiah Banda with his minister Hon Situmbeko Musokotwane strangely reversed this progressive policy direction.”
Dr Chitala further explained various suggestions patriotic Zambians have made over the country’s mineral wealth.
“As for Zambia, many patriots have made suggestions on how we can benefit from our resources. At the very least, we should find a leadership that will create a developmental state and implement the following policy initiatives: Declare copper, cobalt, gold, emeralds, sugilite strategic minerals as the Arabs and Norwegians did for their oil,” he said.
“Amend our Constitution to provide guarantees that not less than 51 per cent local ownership in all mines. There must be sovereign ownership of all natural resources – land, water, minerals. Abolish the foolish idea of allowing 100 per cent deduction for exploration costs, development costs and making royalties tax deductible. This will mean that it is not Zambians who fund these projects. These costs in all countries are normal and investors offset them through their profit and loss accounts. Decriminalise small-scale mining of gemstones and simply provide for mechanisms for sharing production with the state 50-50 rising to 70 per cent for the state.”
Dr Chitala advised Zambians against thinking that taxes and employment creation are the real benefits they should get from mine investors.
“We Zambians must stop thinking that employment creation and tax payments by these investors is a benefit or an advantage to Zambia. This employment and tax payment is normal and without Zambians being employed and paying taxes, there would be no mining of our base metals,” he said.
“These costs are inherent in any business. We should also by deed promote value addition and beneficiation as president Kaunda tried to do in establishing ZAMEFA which we foolishly privatised to foreign interests. Our emeralds, gold, sugilite and other gemstones must first be processed in Zambia as is the case in all serious countries.”
Meanwhile, Dr Chitala suggested other ways of caring for minerals in public interest.
“As for copper and cobalt, share production 50/50 as Zambia’s contribution to the business is its ownership of the mineral. In fact, the mineral to be mined must first be valued and this would represent Zambia’s interest in the mine. This approach also takes care of the royalties which after all do not take into account the thieving enjoyed by these investors in value-added activities conducted outside Zambia’s jurisdiction,” he said.
“It is shameful to note that one Bank of Zambia [article] published online indicated that Zambia collected $313.5 million in the third quarter of 2022 and collected only $115.8 million in 2022 of first quarter of 2023 because our leaders decided to make royalties tax deductible at Zambia’s expense.”
And Dr Chitala called for the establishment of a sovereign fund to help create quality employment opportunities.
He also suggested more cost-reflective methods of extracting minerals.
“On the basis of this, Zambia can easily establish a sovereign fund which Mwanawasa almost created but unfortunately passed away and was replaced by neo-colonialist lackeys as Kwame Nkrumah used to call them. This is what will create quality employment opportunities and expand our investable surpluses and decisively deal with poverty and backwardness,” said Dr Chitala.
“Yes, if we cannot do these minimal things for ourselves, we must leave these resources untapped until future generations can find more cost-reflective methods to extract these minerals from our land and process them to benefit our country.”