Africa-Press – Zambia. Democratic Progressive Party – DPP President Antonio Mourinho Mwanza has called for the removal of tax holidays in the mining sector, pledging sweeping reforms aimed at ensuring Zambians benefit more from the country’s natural resources.
Speaking on Radio Phoenix’s “Let the People Talk” programme in Lusaka today, Mr. Mwanza said the DPP would critically review all existing tax arrangements in the mining industry once it forms government.
Speaking on Radio Phoenix’s “Let the People Talk” programme in Lusaka today, Mr. Mwanza said the DPP would critically review all existing tax arrangements in the mining industry once it forms government.
He emphasized that Zambia’s mineral wealth must directly benefit its citizens rather than foreign investors.
“We as DPP will cancel that arrangement. Going forward, there will be no mining firm that will be opened without Zambians as majority shareholders. Every mining firm, going forward, must have majority shareholding in the hands of Zambians,” he said.
Mr. Mwanza lamented that Zambia is not receiving a fair share of mining revenues because all large-scale mining companies are foreign-owned.
He further vowed that under a DPP government, no raw copper exports would be permitted.
“We will not allow mines to export raw copper in the form of blisters and concentrates. Mining companies must invest in smelters, processing, and manufacturing. That’s the only way we can create jobs for our young people,” he explained.
“We will cancel tax breaks and tax holidays that have been given to mining firms. When you look at the VAT refunds ZRA pays–K9 billion per year–about 81 percent of that goes to less than six mining firms. Who owns these mines? Foreigners,” he stated.
Mr. Mwanza also questioned the true beneficiaries of Zambia’s economic growth, citing recent government reports of 6.2 percent GDP growth.
“The question is, who owns that GDP? We have identified sectors that can create jobs for our young people—mining being number one. But who owns the mining sector? It’s foreigners. Zambians don’t own it,” he said.
He announced that a DPP government would review all existing mining agreements line by line, ensuring that the industry is restructured to give Zambians control and majority ownership.
“There is no large-scale mining firm owned by Zambians. The gold is in foreign hands. When DPP forms government, we will restructure the mining arrangements to make sure the sector is owned and controlled by the Zambian people,” he added.
Mr. Mwanza further highlighted that while the mining sector accounts for about 72 percent of Zambia’s foreign exchange earnings, its contribution to GDP remains below 15 percent.
“Where does the rest of the money go? It goes back to Europe, to China, and to those who own the mines,” he said.
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