FQM Endorses Bank of Zambia’s Export Proceeds Framework
First Quantum Minerals (FQM), the country’s largest taxpayer, has expressed its full support for the Bank of Zambia’s Export Proceeds Tracking Framework directives aimed at promoting transparency and accountability in Zambia’s export sector.
These directives, which took effect on January 1 this year, are designed to enhance visibility and monitoring of revenue generated from exports of goods and services.
Under the new directives, exporters are required to match export records with funds flowing through Zambian bank accounts. This initiative aims to provide the Bank of Zambia with comprehensive insights into the origin and utilization of export funds, facilitating greater transparency and oversight.
Dr. Godwin Beene, FQM’s Country Manager, lauded the central bank’s approach, highlighting its potential to enhance transparency regarding export proceeds and enable investigations into any discrepancies.
He emphasized the importance of tracking dollar flows, particularly in light of exports being predominantly denominated in US dollars, and its significance for the Zambian economy.
FQM reiterated its commitment to compliance with the new requirements, affirming its longstanding practice of channeling export proceeds through Zambian bank accounts.
The company emphasized its adherence to Rule 18 (Proof of Exports) of the Zambia Revenue Authority’s VAT General Rules, which mandates exporters to provide documentary evidence of depositing export proceeds in local banks.
The company’s endorsement of the Export Proceeds Tracking Framework comes against the backdrop of a notable increase in tax payments from the mining sector.
According to the Zambia Extractive Industries Transparency Initiative (ZEITI), tax payments from the mining sector surged by 11 percent to K43.3 billion in 2022. FQM’s subsidiary, Kansanshi Mining, emerged as the largest contributor, paying K15 billion in taxes, followed by FQM Trident with contributions of K8.6 billion.
