2022 Budget Proposals and Indaba Review Proposals
The National Mining Indaba was held recently on April 29th and 30th 2021. The Indaba was a condition of the Economic Recovery Programme 2021-2023, launched by the President of Zambia H.E. Edgar Chagwa Lungu in December 2020. The purpose of the Indaba was to discuss what conditions would be necessary to initiate recovery and revitalisation in the mining sector. The theme was “Building for the future: Reflecting on Zambia’s Mining Taxation Policy and looking towards Sustainable Investment in the Sector”, with the focus on designing a mutually beneficial mining tax regime that would encourage investment and recovery. The Indaba was a successful event with many participants from both the mining industry as well and many Government departments, including the Ministry of Mines and Minerals Development, Ministry of Finance and Zambia Revenue Authority. The result of the Indaba discussions was a constructive critique of current mining tax policies and recommendations as to how these policies could be best revised in the future to attract investment and achieve recovery.
Following the Indaba, a technical committee was formulated, comprising the Ministry of Mines and Minerals Development, the Ministry of Finance, Zambia Revenue Authority, the Zambia Extractive Industry Transparency Initiative, the Chamber of Mines and its members, as well as accounting firms such as PWC and Ernst & Young (EY). A joint workshop was held from 6th to 8th May to further discuss and further refine the recommendations coming out of the Mining Indaba and to consider the expected financial impact of some of the key proposed changes so that these could be considered by the Government in its 2022 National budget. The outcome of these discussions form the Chamber of Mines 2022 Budget submissions, and are set out below. As we explain, these proposed changes must be implemented without delay, if Zambia is to capitalise on the favourable outlook for copper and other minerals.