No Tax Holidays in Zambia’s Mining Sector, Finance Minister Clarifies
Zambia’s Finance Minister, Situmbeko Musokotwane, has refuted claims that the government grants tax holidays to multinational mining companies, emphasizing that “there is no mine that has been given a tax holiday.”
Addressing Parliament, the Minister highlighted the government’s efforts to align Zambia’s tax policies with international standards to stabilize the mining sector and attract investment.
Musokotwane argued that past policy inconsistencies had led to production declines and mine closures, necessitating a new approach.
He expressed concern over misinformation from some civil society organizations and political figures, which he said undermines public confidence and the government’s global negotiating power.
False claims, including those from the Zambia Conference of Catholic Bishops, alleging that tax breaks are reducing mining revenues, have gained traction. Musokotwane urged stakeholders to base their critiques on evidence to avoid damaging Zambia’s international reputation and deterring investment.
Meanwhile, illegal mining remains a pressing challenge. U.S. Ambassador to Zambia, Michael Gonzales, revealed that illicit operations cost the country $500 million in the first nine months of 2024.
This, Musokotwane stressed, is a more urgent issue requiring robust enforcement mechanisms and stakeholder collaboration.
He called for all parties, including civil society, media, and religious organizations, to avoid amplifying unverified claims. Instead, they should focus on constructive dialogue and transparency to support Zambia’s mining sector as a foundation for sustainable economic growth.
