The Center for Trade Policy and Development – CTPD has lamented that the recent ‘instability’ in the mining sector are likely to reduce the country’s export earnings and further impact negatively on the already weakened economic sentiment.
CTPD Executive Director Isaac Mwaipopo has explained that Zambia gets a significant portion of its foreign exchange from the export of minerals which accounts for over 70 export of total export values, and in situations where the sector is facing challenges, exports are likely to reduce.
In an exclusive interview with the Zambian Business Times – ZBT on January 23, 2020, Mwaipopo said there is need to engage and negotiate with key players in the mining sector while enabling them contribute fairly to taxes in the country and create win-win opportunities for both the investor and the country at large.
He added that the recent discoveries of gold mining in places like Lufunsa, Petauke, Mwinilunga and oil being confirmed in Gwembe is a reminder of how rich the country is, hence the need to prudently utilize the resources and create wealth for the country.
“Zambia has been blessed with resources like copper, coal, gold and emeralds. We should however ensure that the discovery of such resources do not add to the poverty of this country like the trend that has been seen in the recent past where despite having much resources in the country, we still have a significant portion of our citizens living in poverty and are not having access to opportunities that will help improve their lives,” He said.
Mwaipopo has further noted the need by government to craft strategies that will ensure resources are being used or exploited to the benefit of the citizens adding that with the number of legislations like the mines and minerals Act, if implemented should help advance the interest of Zambians.
He has observed the recent growing challenges between government and mining players in the mining industry concerning proposals that government undertook to prove its benefits hence hoping that government gets back to a discussion table with players within the sector to address any outstanding issues that mining companies may be grieving about.
“We have also seen that there was a big challenge in the performance of prices of commodities such as copper on the international market which was partially attributed to the trade war that was going on between countries like China and the US. And now that it is changing within the global environment, we are hoping to see an improvement on the market.” he added.
