Zambia

This is Zambia's first EITI report, published in 2011 with data from 2008.

This case study on Zambia, Namibia, Ghana and Australia concludes that sub-Saharan African countries collect only relatively low tax revenues from the extractive sector compared with mining countries in Australia.

Southern Africa Resource Watch's new book, South African Mining Companies in Southern Africa assesses the level of  corporate governance and social responsibility practiced by South African mining and gas companies operating in five SADC countries: The Democratic Republic of Congo, Mozambique, Namibia, Zambia and Zimbabwe. Its main finding is that the behavior of most of these companies leaves much to be desired; it finds that in all five case studies, companies have either not fully respected their development agreements or have not met their tax obligations in full.

This paper examines the macroeconomic management of Zambia’s natural resource endowment over the past century.

Christopher Adam and Anthony Simpasa first describe how the state has adopted different strategies to secure a share of the rents from copper mining, as well as how these strategies have affected incentives for exploration and production, before offering an analysis of how associated macroeconomic policy regimes have shaped the value and distribution of natural resource rents in Zambia.

The Mines and Minerals Development Act (2008-4) stipulates the application process for Small-Scale Gemstone Mining Licenses and Artisanal mining, as well as the contingencies involved in receiving a license. This Act also stipulates the application process for a Mineral Processing License, a Gemstone Sales Certificate, and general provisions relating to licenses and permits.

In this report author John Lungu discusses the history and political evolution of Zambia’s mining tax regime, before placing a special focus on a slate of mining tax reforms enacted in 2008 by late president Levy Mwanawasa. Lungu argues that contentious policy debate over mining taxation (of the sort that erupted in response to Mwanawasa’a reforms) is nothing new in Zambia, and insists that an awareness of this history might help support government efforts to raise revenues through new fiscal policies for mining.

This study was commissioned in the wake of the global financial crisis of 2008-2009 by a collective of African and international non-governmental organizations, including the Open Society Institute of Southern Africa Resource Watch (Johannesburg), Third World Network Africa (Accra), Tax Justice Network Africa (Nairobi), Action Aid International (Johannesburg) and Christian Aid (London). It looks at mining taxation and transparency in seven African countries: Ghana, Tanzania, Sierra Leone, Zambia, Malawi, South Africa and the Democratic Republic of Congo (DRC). For each, it examines past and present mining tax laws, tax rates (and the forces driving tax changes), and compares the tax terms of mining contracts with national tax laws, to give a picture of how African governments have or have not been able to optimize mining tax revenues in recent decades, through periods of dramatic fluctuations in commodity prices.

This report provides an overview of the mining sectors in eight Southern African Development Community (SADC) countries – namely Angola, Botswana, the Democratic Republic of Congo, Malawi, Namibia, South Africa, Zambia and Zimbabwe – and offers an outline of the socio-economic and political issues they face as a consequence of the downturn in the mining sector from 2008 to 2009.

The Mines and Minerals Development Act (2008-1) includes all mining rights, all licenses and their application processes, in addition to artisinal mining, gemstone sales, mineral processing licenses, safety, health and environmental protection, geological mineral analysis, royalties, administration and appeals.

This Bill revised the law in relation to prospecting, mining and the processing of minerals, replacing the Mines and Minerals Act of 1995, and stipulating mining rights, Prospecting license arrangements, Large-Scale Mining Licenses, Large-Scale Gemstone Licenses, Small-Scale Mining Licenses and all actions made under these Licences.