15 January 2025
Felistus Omelo Mumba, Member of the Central Committee for Mines under the Citizens First Party, has expressed deep concern over Zambia’s persistent loss of potential revenue from the mining sector.
She attributes these losses to unfavorable agreements and a lack of transparency in mining contracts, which undermine the country’s ability to reduce poverty and create jobs.
Speaking on the matter, Omelo Mumba criticized President Hichilema’s administration for its excessive granting of tax incentives and exemptions to foreign mining entities, coupled with the non-disclosure of critical mining agreements.
“One certainty for Citizens First is that the current mining agreements fail to create wealth for Zambians,” she stated. “These deals are heavily skewed in favor of foreign companies, leaving citizens in the dark about the full details, as transparency is conspicuously absent under President Hichilema’s leadership.”
Citing the example of Kobold Metals, a Silicon Valley-based exploration company that plans to invest $2.3 billion over the next 8–10 years in developing the Mingomba Copper Mine, Omelo Mumba raised questions about Zambia’s share of the benefits.
“We have no clear understanding of what Zambia will gain from this investment apart from a few low-paying, unskilled jobs during the development phase,” she said.
The mine, discovered using artificial intelligence, is backed by prominent billionaires Jeff Bezos and Bill Gates, but details regarding Zambia’s long-term benefits remain opaque.
Omelo Mumba noted that the lack of transparency surrounding Mingomba mirrors the operations of other foreign-owned companies in Zambia, such as IRH, a Dubai-based firm recently scrutinized in Parliament.
“In all these agreements, the critical details are hidden, leaving Zambians uninformed as secrecy continues to dominate under this administration,” she remarked.
According to international tax studies, Zambia loses approximately $3 billion annually due to illicit mining practices, including tax evasion and avoidance by foreign companies.
The Zambia Revenue Authority (ZRA) itself admitted that as of October last year, the country lost approximately $500 million in unpaid mineral royalties.
“When these foreign companies are not evading taxes, they are receiving tax holidays and incentives that are never extended to small Zambian businesses. This is both irrational and economically unsustainable,” Omelo Mumba asserted.
She pledged that a Citizens First administration would renegotiate mining agreements to ensure Zambians, as the rightful owners of these resources, benefit equitably. This would include fostering job creation and securing better terms for the country.
Highlighting Zambia’s paradoxical situation, Omelo Mumba pointed out that despite being Africa’s second-largest producer of copper, Zambians rank among the world’s poorest populations, with many surviving on less than $1 per day.
She attributed this dire situation to the depreciation of the kwacha, now trading at nearly K30 to $1, which sharply contrasts with the pre-election promises of President Hichilema.
“It is unconscionable that Zambians go to bed hungry while the country sits on vast mineral wealth,” she concluded, describing the current state of affairs as a disservice to the people.
Omelo Mumba reiterated that Citizens First remains committed to reversing these trends through transparent and equitable resource management when entrusted with governance.
Felistus Omelo Mumba
Chairperson Mines and Minerals Committee.
Citizens First Party.