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Significance
The Zambian authorities have introduced a range of new taxes and royalties to try to capture a higher share of a rising copper price and help ease the government's burgeoning debt obligations. The Chamber of Mines has warned the new measures could result in 21,000 job losses in the coming three years.
Impacts
Increased taxes could see copper output decline, undermining the government's efforts to raise more funds to tackle debt.
Reduced copper output and negative investor sentiment could further weaken the kwacha, making debt repayments more expensive.
The government will likely have to keep deferring repayment of the VAT arrears owed to mining companies.
Keywords:
Zambia,
AF,
economy,
industry,
politics,
social,
foreign investment,
government,
investment,
metals,
mining,
policy,
prices,
Metals & mining
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2019
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