Citizens First party criticises Hichilema’s mining policies, alleges $3 billion loss annually

Citizens First (CF) party Chairperson for Mines and Minerals Committee, Felistus Mumba, has criticized the Hakainde Hichilema administration for reportedly granting excessive tax incentives to foreign mining entities and failing to ensure transparency in mining agreements.

Mumba pointed to reports estimating that Zambia loses around US$3 billion annually due to illicit mining practices, including tax evasion and avoidance by foreign companies.

The Zambia Revenue Authority (ZRA) recently disclosed that the country lost approximately US$500 million in unpaid mineral royalties as of October last year.

In a statement issued Tuesday, Mumba expressed concern over the secrecy surrounding mining agreements, citing Kobold Metals, a Silicon Valley-based company planning a $2.3 billion investment in the Mingomba Copper Mine, as an example.

“One certainty for Citizens First is that the current mining agreements fail to create wealth for Zambians. These deals are heavily skewed in favor of foreign companies, leaving citizens in the dark about the full details, as transparency is conspicuously absent under President Hichilema’s leadership,” she said.

Mumba argued that the lack of transparency in contracts undermines Zambia’s potential to reduce poverty and generate jobs, pointing to similar secrecy in deals with other foreign firms like Dubai-based IRH, recently questioned in Parliament.

Highlighting Zambia’s paradoxical situation as Africa’s second-largest copper producer, Mumba noted that many citizens live on less than $1 per day.

“It is unconscionable that Zambians go to bed hungry while the country sits on vast mineral wealth,” she stated, blaming the current administration for the depreciation of the kwacha, now trading at nearly K30 to $1, and contrasting this with President Hichilema’s pre-election promises.

Mumba urged the government to renegotiate mining agreements in favour of Zambians, emphasizing that the status quo benefits foreign investors at the expense of the nation’s economic well-being.

“The lack of transparency and the failure to prioritize citizens in these deals is a disservice to the people,” she said.

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