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President Hakainde Hichilema has dismissed assertions by opposition parties that his administration has extended tax holidays to major mining firms such as First Quantum Minerals (FQM), thereby undermining Zambia’s fiscal revenue base.
Speaking during an engagement at State House in Lusaka on Thursday with the Bankers’ Association of Zambia (BAZ), led by Chairperson Lowani Chibesakunda, President Hichilema clarified that reforms instituted under the United Party for National Development (UPND) have significantly increased mining tax contributions.
He cited FQM’s current annual tax remittance of $70 million, a marked improvement from the $15 million reportedly paid during the previous administration.
The President underscored the importance of sustained dialogue between government and the financial sector, drawing parallels with the collaborative engagements already seen in the mining industry.
“It is essential for building a resilient financial ecosystem, enhancing investor confidence, and accelerating Zambia’s long-term development goals,” President Hichilema stated.
On the issue of local content and economic participation, he reiterated government’s commitment to ensuring that Zambian institutions and citizens derive tangible benefits from key sectors, including mining, finance, and agriculture.
He stressed that deliberate measures have been taken to increase local involvement, particularly through promoting access to financial services by domestic actors.
“What remains now is effective collaboration between government, local businesses, and institutions to support each other and maximise local economic benefits,” he said, adding that such cooperation could catalyse broader economic expansion and enhance revenue generation through strategic sectoral linkages.
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Hichilema urged Zambian enterprises to become more organised in order to competitively position themselves to access opportunities emerging from government-led initiatives and partnerships.
Furthermore, he challenged local financial institutions to develop innovative products tailored to support large-scale infrastructure and industrial projects.
“Growth and development are driven by innovation and access to financial services,” the President noted, affirming the government’s interest in fostering a robust and inclusive financial landscape.
The meeting, described as cordial and forward-looking, centered on aligning the banking sector’s role with the national economic transformation agenda, particularly in supporting energy, agriculture, infrastructure, and Small and Medium Enterprises (SMEs).
The President concluded by reiterating that banks were indispensable partners in advancing Zambia’s economic recovery and development trajectory.
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