We as Citizens First believe that Zambia’s path to lasting prosperity is through industrialisation. It is the most sustainable way to generate alternative revenue and drive economic growth. By industrialising, we can turn our minerals into factories, jobs and national wealth. Zambia has the resources; what we lack is the leadership to use them effectively.
In recent years, the so‑called “new dawn” granted mining companies generous incentives, including duty‑free equipment imports, VAT refunds, and royalty deductions. As a result, Zambia often gives back most of what it collects. In April 2024, for example, mines paid about K1.8 billion, but after refunds the government kept only around K600 million. In some months, nearly 70 percent of mining tax was returned, leaving the country with very little actual revenue.
Research shows Zambia loses up to US$3 billion a year through mining tax avoidance, profit shifting, and exemptions. This is money that could build industries, factories, and create thousands of jobs. In 2022, Zambia borrowed US$1.55 billion from the IMF, a sum that could have been covered by collecting just half of the revenue currently lost in the mining sector.
The CF will revise these tax breaks. Not to chase away investment, but to secure fair returns for our people. By adjusting the mining fiscal regime to capture even a fraction more revenue, we can fund industrial parks for steel fabrication, agro-processing, and battery manufacturing.
As long as we keep exporting raw materials without closing the financial leakages in the mining sector, other countries will continue to profit more from our resources than we do. The real value lies in building industries that can process and manufacture our minerals, because that keeps the wealth here at home, where it can benefit all our people.
Harry Kalaba,Citizens First