Chambishi Copper Smelter – CCS, one of Zambia’s largest copper concentrate processing companies has failed to confirm if the Company is adhering to the export proceeds tracking framework directive by the Bank of Zambia – BoZ, which came into effect on 1st January 2024.
This is after Barrick’s Lumwana mine, the second-largest copper miner in Zambia denied exporting copper but trades locally through other players that have smelters, of which CCS is one of the largest Copper Smelting companies in Zambia.
CCS is a largely copper smelting and processing company located within the Chambishi Multi-Facility Economic Zone (MFEZ) and is one of Zambia’s largest copper concentrate processing companies, with a capacity designed to produce about 250,000 tons of copper blister per year.
This is from the copper concentrates that the company purchases from both local and foreign entities mostly from neighboring DRC. It also produces 670,000 tons of sulphuric acid as a by-product for local and export markets.
When contacted by the Zambian Business Times – ZBT, on Friday 1st March 2024, CCS through its Corporate Affairs Officer Elezeti Nyambi refused to confirm if the Company is adhering to the new BoZ directive and only promised to get back after some time. A check, however, with her as of Monday 5th March 2024, established that she was still unable to confirm if the Company is adhering to the directive.
The BOZ export tracking framework requires that all exporters in Zambia open bank accounts with a bank or financial institution domiciled in Zambia and deposit all export proceeds to that account within a period of 90 days.
CCS being one of the largest copper concentrate processing companies in Zambia remains key to the success of this export proceeds tracking framework as copper exports alone account for over 70% of Zambia’s total annual exports.
The BOZ export proceeds tracking framework directive has brought renewed hope, with analysts and economists projecting that, if well implemented, policy actions will be well directed and that the Kwacha may post further gains as this balance of payments monitoring tool is expected to bring more transparency and result in more export dollar inflows into the country.
The export tracking framework among other things requires exporters to open and maintain a bank account with a bank or financial institution domiciled in Zambia and that an exporter shall deposit all proceeds of exports of goods and/or services into this account within ninety (90) days from the date of export.
All exporters in Zambia are required to complete and submit to Zambia Revenue Authority (ZRA), the customs export declaration form.
And the banks or financial institutions that receive these export proceeds are required to make a return or report to BOZ through submission of money receipts and remittances report on the electronic Balance of payment (e-BoP) Monitoring System.
The directive has also prescribed adequate penalties for exporters, banks, financial institutions and other players involved in export that fail to comply, which include revocation of their tax clearance certificate and TPIN.
By time of publication, ZBT was still actively seeking confirming with companies that run smelters if they are complying with this directive. More details to follow.
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