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The Consumer Unity Trust Society (CUTS) says Zambia must strike a delicate balance between maintaining control over mining firms and considering the interests of capital investors.
Shadreck Saili, a policy commentator, said this in a statement issued in Lusaka on Tuesday.
Saili said the debt restructuring deal offers Zambia a much-needed financial respite and an opportunity to re-evaluate the ownership structure of its key assets.
“In the wake of Zambia’s recent debt restructuring deal, the nation stands at a critical juncture to reevaluate its approach towards the management and ownership of valuable national assets, such as the Mopani Mine as confirmed by the Minister of Finance Dr. Situmbeko Musokotwane,” he said.
Saili said the country’s experience with Mopani Mine, where it currently holds 100percent shareholding, provides valuable lessons for shaping a favourable deal that aligns with national interest.
He said this must be done while navigating the challenges posed by African Continental Free Trade Agreement (AfCTA) and debt restructuring.
“As we proceed, it is crucial to recognize that our nation’s resources are essential drivers of economic growth and prosperity,” Saili said.
He said securing the Mopani Mine deal should reflect the strategic vision of achieving sustainable development and maximising the benefits for the nation.
Saili added that considering the critical role that mining plays in Zambia’s economy, it was imperative to maintain a substantial ownership stake in Mopani Mine.
“The current 100 percent shareholding is a step in the right direction, providing the nation with substantial control over the mine’s operations and the benefits generated, but must have a sustainable support mechanism,” he said.
Saili advised that to ensure adequate control of this national asset, the ownership level should always remain above 50+1 percent.
He said this threshold allows Zambia to make decisions in the best interest of its citizens and leverage mining revenues to drive social development and economic diversification.
“While maintaining a majority stake, Zambia should adopt a gradual approach when considering changes in the ownership structure of Mopani Mine.
“Drastic shifts in ownership have proven to be disruptive in the past and may not be conducive to long-term stability and investor confidence,” Saili said.
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