Breaking NewsBusinessMining

Local Government Empowered by New Investments, Kitwe City Council Benefits

The Ministry of Local Government and Rural Development (MLGRD) has lauded the proactive steps taken by various Local Authorities across the country, signaling a significant development that highlights the positive impact of new investments on local communities.

In a recent statement issued by Mr. Chila Namaiko, the Public Relations Officer of the MLGRD, Hon. Gary Nkombo, MP, highlighted the commendable initiative of one of the prominent mining companies, Mopani Copper Mines (MCM). 

MCM, in its latest operational move, has decided to offset a substantial debt of K87 million owed to the Kitwe City Council (KCC). 

This payment represents an overdue obligation from 2021, with International Resources Holdings (IRH) of Abu Dhabi having recently completed a significant investment of US$1.1 billion in Mopani, securing a 51% stake through a strategic partnership with ZCCM Investments Holdings Plc.

Hon. Nkombo emphasized that Mopani’s decision to settle its debt with the local authority underscores the positive intent of new investments in empowering citizens and fostering community development. 

The payment not only serves to strengthen the financial base of the Local Authority but also enables the clearance of outstanding terminal benefits totaling over K8.7 million owed to 53 employees who retired in 2023.

“The commitment shown by Mopani is a testament to the fruitful partnership between the government and investors. It further highlights the alignment of investor objectives with community empowerment,” stated Hon. Nkombo.

The Minister commended the Kitwe City Council for its pragmatic approach in utilizing the funds to clear terminal benefits, thereby financially empowering its former employees. 

He stressed that such proactive measures by Local Authorities are crucial steps in fulfilling the government’s commitment to prioritize the welfare of retirees.

Furthermore, Hon. Nkombo encouraged investors to continue supporting Local Authorities, noting that such contributions are instrumental in fulfilling statutory obligations, including payments to institutions such as the National Pension Scheme Authority and the Zambia Revenue Authority.

Leave a Reply

Your email address will not be published. Required fields are marked *