Zambia Needs Sovereign Resource Fund Establishment to Secure National Wealth
Zambia stands at a critical economic juncture where the effective management of natural resources can determine long-term prosperity especially with the ongoing geophysical survey and unexplored cases with the Gold issues and other precious stones being discovered.
As a resource-rich country, particularly in copper and other minerals, Zambia must now move decisively to establish a National Sovereign Resource Fund (SRF) that will serve as a special vehicle for stability, savings and intergenerational equity.
The establishment of such a wealth fund is not just an economic necessity, but also a strategic safeguard.
By ring-fencing a portion of revenues from mining royalties, windfall taxes and other natural resource rents, Zambia can:
- Stabilize the economy against volatile commodity prices.
- Safeguard future generations by transforming finite resources into long-term financial wealth.
- Strengthen the kwacha and build foreign exchange reserves.
- Support infrastructure development and diversification of the economy.
- Manage debt obligations more sustainably, while fostering investor confidence.
Experience from nations such as Norway, Botswana and Nigeria clearly demonstrates that when resource funds are well-structured, insulated from political interference, and guided by transparency and accountability, they become as such powerful and useful tools for national economic transformation in real terms.
It is therefore imperative that Zambia establishes a Sovereign Resource Fund through a strong legal framework anchored in an Act of Parliament, with clear governance structures, investment policies, and reporting standards.
Finally, this proposal will ensure that the fund is managed professionally and responsibly, for the benefit of both current and future citizens.
The call for a Sovereign Resource Fund is a call for prudence, discipline, and vision. It is about ensuring that Zambia’s mineral wealth is not only enjoyed today, but preserved and multiplied for generations to come.
