Business
Zambia Forecloses Mining Windfall Tax Re-Introduction
Zambia, Africa’s top copper producer, will not reintroduce a mining windfall tax it scrapped in 2009 because it may force mine closures, the minister of finance said last Thursday.
“Mining has a long gestation period and we don’t want to tax the mines out of business,” Alexander Chikwanda said on state-owned ZNBC radio
“In fact, there are a lot of complaints from the mines on the government’s hike in the mineral royalty tax from three per cent to six per cent but we need to strike a balance,” he said.
Zambia’s former Mines Minister Wylbur Simuusa said in February the country might bring back the windfall tax if copper prices hit 10,000 dollars per tonne. Prices are now at around 8,455 dollars.
But Chikwanda said that could push up mine production costs by as much as 500 dollars per tonne, which he said would be too high.
Zambia scrapped the 25 per cent windfall tax in 2009 following complaints from miners that it raised production costs and discouraged investment.
The new government of President Michael Sata doubled royalties on copper miners to six per cent in the 2012 budget to bring in revenue to increase social sector spending and farm subsidies.
Miners have warned that such move may cause them to scale back operations.
Foreign miners operating in Zambia include First Quantum Minerals, London-listed Vedanta Resources Plc and Glencore of Switzerland.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.