Musonda urges political parties to commit to stable mining policies

Mining enthusiast, Charles Musonda, has urged Zambia’s major political parties to commit to preserving policy certainty in the mining sector regardless of the outcome of the next general election, warning that inconsistent policies could undermine investment and economic growth.

Speaking in an interview on Thursday with Zambia Monitor, Musonda said the country’s leading political parties should make a shared national commitment that transcended electoral outcomes by maintaining the fundamental principles of policy certainty, respect for lawful investment agreements and regulatory predictability.

“Regardless of which party forms Government after the next election, Zambia should preserve the fundamental principles of policy certainty, respect for lawful investment agreements and regulatory predictability,” he said.

Musonda acknowledged that governments had the right to review tax rates, incentives and fiscal measures but stressed that such reforms should be undertaken through consultation, evidence-based policymaking and with due regard for their long-term economic implications rather than short-term political considerations.

He said recent figures published under the Zambia Extractive Industries Transparency Initiative (ZEITI) offered an important lesson for policymakers across the political divide.

According to Musonda, Zambia’s extractive industry contributed more than K33 billion to government revenue through taxes, mineral royalties and other statutory payments in 2023.

That contribution rose to more than K38 billion in 2024, reaffirming mining’s position as the country’s largest source of public revenue.

“These figures should not simply be viewed as statistics in an annual report. They should serve as a reminder that the mining industry remains one of the principal pillars supporting the Zambian economy and the financing of Government programmes,” he said.

Musonda argued that this reality underscored why mining policy should never become a casualty of short-term political competition.

As Zambia heads towards another election cycle, he noted that while political parties would naturally differ on taxation, economic priorities and investment strategies, the country’s commitment to maintaining a stable, transparent and predictable mining investment framework should remain above partisan politics.

“Mining is unlike many other sectors of the economy. Investors commit billions of dollars long before they realise any return on their investment, and most mining projects are designed around planning horizons of 20 to 40 years,” he said.

He added that such long-term investments depended on confidence that the rules governing taxation, royalties, licensing and contractual obligations will remain broadly predictable over time.

Musonda warned that frequent policy changes, abrupt adjustments to royalty regimes, inconsistent tax measures and uncertainty surrounding investment agreements could erode investor confidence.

“When uncertainty increases, exploration slows, expansion projects are delayed and new investments are redirected to jurisdictions considered more stable,” he said.

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