The current political leadership under President Hichilema is incapable of developing Zambia, driven by an inferiority complex that prioritizes wages from foreign entities for extracting our valuable minerals.
Lusaka, July 26 – By Mpandashalo Mwewa.
TOPLINE: The current leadership is exulting over wages paid for extracting our rare, valuable minerals, which ultimately benefit foreign entities that reap all the proceeds. Shouldn’t these foreign companies, instead, be working for wages to extract our minerals, which we should utilize to foster national development or sell internationally to generate diversification funds?
KEY POINTS
◾The foundation of Zambia’s debt restructuring necessity was rooted in inadequate tax collection, leaving the government with no choice but to resort to borrowing to bridge the budget deficit.
◾To attain sustainable debt levels, Zambia must enhance tax collection and ensure that the mining industry contributes significantly to the broader economy.
◾In 2006, royalties from copper amounted to a mere $24 million from $4 billion worth of copper extracted. Taxation of mining companies was similarly insufficient. Between 2000 and 2007, Zambia exported $12.24 billion in copper, yet the government collected only $246 million in taxes.
◾We must scrutinize our political leadership’s decision to outsource emerald mining, which has the potential to generate up to $40 billion per ton. Instead, they prioritize copper mining, valued at approximately $8,000 per ton. Meanwhile, Zambia’s annual emerald production ranges from 2 to 3 tons.
◾It is imperative that we sever external dependencies and take control of our own destiny. Only Zambians can effectively develop Zambia. President Hichilema’s investment strategies seem more aligned with benefiting foreign investors.
◾A nation succumbs to tyranny through submission. When a society relies solely on government for order, it relinquishes its freedom, becoming enslaved by its desire for comfort, and thus, becomes vulnerable to oppression.
CRUCIAL QUOTE
“I would rather argue, that we need to mobilise the right mindsets, rather than more funding. After all, in Africa, we have everything we need, in real terms. And yet we remain mentally married to the idea that nothing can get moving, without external finance. We are even begging for things we already have. That is absolutely a failure of mindset!” – Paul Kagame.
BACKGROUND
Zambia’s debt default arose from multiple factors. While it serves Western geopolitical interests to attribute the default to Chinese debt, Canadian First Quantum Minerals (FQM)’s exploitation of Zambia’s rich mineral resources significantly contributed to the financial crisis. Zambia has not been reaping the benefits of its mineral wealth.
Our leaders may charm the public into celebrating the job creation from mining our rare, valuable minerals, but this path has anchored our poverty. Our mineral wealth primarily benefits foreign entities, which reap all the profits.
For example, in 2006, copper royalties amounted to just $24 million from $4 billion worth of copper extracted. Taxation of mining companies was equally inadequate. Between 2000 and 2007, Zambia exported $12.24 billion in copper, yet the government collected only $246 million in taxes.
An urgent policy shift in the mining sector is essential, driven by individuals with a proven record of transformative policy implementation.
We should draw lessons from the radical transformation of Zambia’s national health system under the leadership of Hon. Dr. Chitalu Chilufya, MP for Mansa Central. As a public health physician, he has championed Universal Health Coverage (UHC). The UPND, as an opposition party, opposed Dr. Chilufya’s UHC initiative, unable to see beyond electoral politics. Today, the health sector’s precarious state hinges on Dr. Chilufya’s National Health Insurance Management Authority (NHIMA) efforts to realize UHC.
While President Hichilema, leading a mineral-rich nation, squanders resources on unnecessary trips to the US to beg for $100 million from USAID, it highlights a stark failure of mindset. As Paul Kagame aptly put it, “In Africa, we have everything we need, in real terms. Yet, we remain mentally married to the idea that nothing can progress without external finance. We are even begging for things we already have. That is a profound failure of mindset.”
The current political leadership under President Hichilema is incapable of developing Zambia, driven by an inferiority complex that prioritizes wages from foreign entities for extracting our valuable minerals. Instead, foreign companies should be working for wages to extract our minerals, which we should use for national development or sell internationally to generate diversification funds.
FURTHER READING
◾Canadian looting of Zambian resources led to debt crisis | Link
◾Emerald can propel Zambia to first world status in a decade | Link
◾The current political mindset is colonising us for the second time | Link
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