First Quantum Minerals – FQM, the largest copper miner in Zambia with mines at Kansanshi – Solwezi and Trident – Kalumbila has failed to categorically confirm if they are complaint or will proceed to comply with the export proceed framework directive.
FQM’s Public Relations Manager Mirriam Hammond in response to a Zambian Business Times – ZBT enquiry stated that the “reporting [on the export proceeds tracking framework directive] will only be availed at the end of the quarter given the 1st of January implementation date and the 90 days reporting period”.
Hammond further disclosed that “It is still in the early stages and there has been a number of meetings between FQM, banks and BOZ to discuss/clarify details, systems [and] concerns”. Efforts to get direct confirmation from the country manager Dr. Godwin Beene proved futile by press time.
But analysts say, with merely about one month remaining to the end of Q1, FQM may be looking for ways or loopholes to get extensions for compliance as the period remaining is too short.
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.
FQM being the largest copper producer 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, the Kwacha may post further gains as this balance of payments monitoring tool is expected to bring more transparency and result in more export forex inflows into the country.
The BOZ 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.
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 or banks or financial institutions that fail to comply, which include revocation of their tax clearance certificate and TPIN.
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