Zambia’s Mining Sector Stable but Lacks Investor Appeal, Expert Warns
Zambia’s mining sector has shown steady performance, but challenges in attracting high-quality investors persist. Economic expert Kelvin Chisanga notes that while the government has maintained a stable and favorable policy environment, including a consistent mining tax regime, the sector’s potential remains underutilized.
Over the past three fiscal years, Zambia has offered a predictable environment for mining operations, with moderate production levels. However, this has not been matched by substantial foreign investment in the mining industry.
Mr. Chisanga highlights that since 2008, Zambia’s mining sector has faced several challenges, both in terms of government policy and investor confidence. The policy framework has been revised nearly 10 times in 15 years, creating uncertainty and hindering long-term planning.
Global market dynamics have also played a role in shaping the sector’s unpredictable growth. Despite efforts by the Zambian government to stabilize the sector and support economic development, the country’s ability to attract the right investors remains limited.
One of the core issues Mr. Chisanga points to is Zambia’s failure to take greater ownership of its mineral wealth. He argues that the extractive industry has long been dominated by foreign stakeholders, with little local participation in key decision-making. This has hindered the country’s ability to fully benefit from its rich natural resources.
The lack of strong educational programs to develop expertise in mineral sales and extraction has also been a significant roadblock, as Zambia’s universities focus more on mining engineering for exploration than on building local capacity to manage and market minerals globally.
As the mining sector continues to drive Zambia’s economy, Mr. Chisanga believes that deeper reforms are needed to ensure the country maximizes its potential. Without greater ownership stakes and educational investments, Zambia risks missing out on the full benefits of its mining sector, which remains central to the nation’s economic stability and growth.
