Cart is empty By PRINCE MABUMBA
ZAMBIAN mining Industry stalwart, Sixtus Mulenga has called on Government to provide incentives to indigenous Zambians involved in large-scale manganese mining through export duty waivers, import duty exemptions and Value Added Tax deferment on importation of plant machinery.
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Dr Mulenga, who is also Musamu Resources Limited founder and executive chairman, said one of the major constraints affecting Zambia’s manganese mining sector is the high cost of exports due to the land-linked geographical position of the country.
“The cost of exporting material is very expensive and the port charges are also very expensive that makes our exports or the business of manganese less competitive as compared to our colleagues or other countries who have seaports examples being Australia, South Africa and Gabon,” Dr Mulenga said.
Speaking when he made a submission during the Townhall Forum on the 2023 mid-year economic performance and 2024-2026 Medium Term Budget Plan in Lusaka yesterday, Dr Mulenga said giving financial relieve to citizens involved in large-scale Manganese mining will enable Zambia to compete favourably with other countries with seaport access.
“And this can be done by providing a waiver of export duty during the time of development and secondly providing import duty exemptions and VAT deferment on importation of plant and machinery to build value addition processing plants,” Dr Mulenga said.
He said it was important for Government to provide a financial relief to indigenous Zambians so as to make it possible for them to conduct the business economically.
He added that manganese could be used to produce Electric Vehicle batteries and enhance Zambia’s role in the green economy.
Dr Mulenga also said Government should improve the Tanzania-Zambia Railways (TAZARA) to enable the Manganese mining companies to export their products in bulk and reduce the unit cost of production.
On the gemstone sector, Dr Mulenga said the sector can provide significant contribution to the national treasury if critical measures to introduce ‘restricted’ trade of gemstones are taken.
Dr Mulenga said Government should introduce a system in which trade in rough gemstones such as emerald is restricted to companies that have mining licences and those that cut, polish and manufacture jewellery
“These are the two categories to which trading in rough gemstones in the country should be restricted to and once we do that, it will bring in a lot of international investment because they will feel that the business is protected and has got a very good framework which they can operate in” Mr Mulenga said.
On petroleum, Dr Mulenga said Zambia has a geological setting, which has potential for oil and gas.
He said Zambia’s geological setting was similar to some neighbouring countries that are producing oil and gas.
“But you may be wondering why we are not exploring because in Zambia we have the Rift Valley Extension where oil has been found, we have the Atlantic Sub-basin where oil has been found but nothing.
“The reason for that is we have an investment framework , which we still need to work on and our proposal is that Government needs to consider reducing its free carry from the current 35 percent to 10 percent and if we do that, we will be in line with the region and we will be very competitive,” Dr Mulenga said.
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