Each year, the Africa Risk-Reward Index compiled by Control Risks, the renowned global risk consultancy, shows us where the country stands in terms of the rewards it offers prospective investors. This year, Zambia is at the very bottom of a list of 26 African countries. The position of each country is defined by its risk and reward score; the size of its bubble represents the country’s GDP.
“Pursuing economic recovery…is the number one goal of my Government,” promised H.E. President Edgar Lungu ahead of the 2021 Budget announcement. Yet the Budget itself contains none of the changes that are necessary to stimulate growth in the mining sector, said the Zambia Chamber of Mines in a statement, released on 28 September.
Three major mining sector projects have investors waiting for the green light, but “without a competitive, fair and transparent tax code in place that equitably distributes the rewards of mining, and compensates investors for the risks they take,” they will not materialise, said the Chamber.