Zambia Roundup: Mining investments, AI framework, copper prices
Investments in mining
The mining sector is a cornerstone of Zambia's economic foundation, contributing 17.5% to the nation's GDP and constituting over 70% of its foreign exchange earnings as of 2021. The export of copper, a key commodity, is crucial in this context. Recognising Zambia's potential, leading mining corporations have made substantial investments. In October 2023, Barrick Gold Corporation allocated nearly $2 billion to enhance copper output at the Lumwana mine. Preceding this, First Quantum Minerals Ltd. announced a $1.35 billion investment spread over two decades for the Kansanshi mine, coupled with a forward-thinking solar and wind power initiative to energise its operations.
US denies claims it is militarising Zambia
General Michael Langley, the leader of U.S. Africa Command, refuted allegations on Thursday made by officials from the Zimbabwean government. The claims suggested that the U.S. was planning to establish a military base in Zambia and relocate AFRICOM's operations from Germany. During an online media briefing, General Langley dismissed the assertions of the United States setting up a base in Zambia, as reported by VOA. “That's absolutely false,” Langley said from an African Chiefs of Defense Conference in Botswana. “We have no bases in Zambia. We have no plans to put one there.”
Stakeholders propose a revision of PAYE
The NGOCC has put forward a suggestion to raise the Pay As You Earn (PAYE) threshold from USD212 to USD229 in the upcoming 2025 national budget. Additionally, the NGOCC recommends decreasing the PAYE tax rate from 37% to 35%. During the National Consultations for the 2025 Budget and the 2025-2027 Medium Term Budget Plan, the NGOCC presented a case for this increase, stating it would alleviate the economic strain on low-income families, particularly those headed by women. The proposal aims to adjust the lowest income band threshold to $229, which would help ease the financial challenges faced by these vulnerable groups. Furthermore, the NGOCC is advocating for a reduction in the maximum tax rate to support this demographic, reports News Diggers.
AI framework in the pipeline
The Zambian government is developing an artificial intelligence (AI) framework, as disclosed by Felix Mutati, the Minister of Science and Technology. The government is also working in partnership with the Tony Blair Institute to craft a strategy for AI. Minister Mutati announced via social media that the revision of the Cyber Security and Cyber Crimes Act is underway, marking an important move towards enabling the implementation of AI. This development was publicized at an AI conference held in Lusaka.
Copper prices hit US$10,129
ZAMSTATS has reported a significant 22.6% rise in export earnings from refined copper, reaching K19.2 billion in May 2024, up from K15.7 billion the previous month. Additionally, Statistician General Goodson Sinyenga of ZamStats has indicated that May 2024 saw a boost in agricultural product exports, climbing to K2.1 billion from K1.2 billion in April 2024. During the dissemination of the May bulletin, Sinyenga noted an increase in copper prices on the London Metal Exchange Market, with figures rising to US$ 10,129.1 per metric tonne in May 2024, up from US$9,482.4 in April 2024, as reported by News Diggers.
