Zambia: Mining’s contribution to Zambia’s economy, society comes under spotlight

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Lusaka, Zambia (PANA) – The first ever independent study of the mining industry’s contribution to the national and local economy of Zambia was launched this week.

The report aims to provide a factual evidence base to inform a sound debate on mining’s contribution at both the national and local levels, as well as identification of areas where – through collaboration – mining’s contribution to the economy and society of Zambia can be enhanced.

The report, entitled “Enhancing mining’s contribution to the Zambian economy and society”, was launched by the International Council on Mining and Metals (ICMM).

It highlights four key areas that needs to be addressed and these include social investment and partnership.

According to the report, mines spend a lot on social investments, but with mixed results.

“There are a number of areas where improvements can be made, which include – more systematic monitoring of outcomes of social investments; better co-ordination between mining companies and other stakeholders; and better alignment of mining companies’ social investment programmes with the district-level development plans and poverty reduction strategies,” says the report.

It also stresses the need to build mutual confidence in the sector, pointing out that stability, transparency and accountability are paramount. The data in the report implies that the competitive position of the Zambian mining industry is fragile.

And according to the report, the quality of the data on which both government and the mines rely on to guide decisions is poor.

It, however, notes that the Chamber of Mines and government agencies are committed to work together to address this problem, and work is in progress to develop a single data template for all to use.

The other issue highlighted was on local content and jobs. The report says mines are starting to run supplier development programmes and government and donor efforts are underway to address supply side constraints including local industrial capability and the enabling business environment.

It, however, observes that there is an opportunity for all parties to align and focus their activities via a co-convened action-oriented forum and that there is also a need to address a chronic skills shortage and the industry is working with others to address this.

The launch was also attended by Vice-President Guy Scott, Minister of Mines Christopher Yaluma and Emmanuel Mutati, President of the Chamber of Mines.

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