By Amos Sikaonga 
By Cecilia Chiluba
A Researcher says Zambia’s mining sector requires holistic reforms to balance investor appeal with national benefit.
Chaaku Collins Nyambozhi told Money News that key steps that need to be taken include revising fiscal regimes, enhancing local participation, stabilizing policies, and adopting global best practices.
Mr. Nyambozhi stated that by doing so, Zambia can transform its mineral wealth into sustainable development, aligning with its 2032 copper production goals.
He noted that Zambia’s tax revenue from large-scale mining is sub-optimal due to ineffective fiscal design and challenges in tax administration.
“Despite high copper prices, profit-based corporate taxes contribute minimally, with gross value-based taxes e.g., royalties and employee taxes dominating revenue streams.”
“For instance, development agreements with mining companies often include tax holidays or reduced rates, eroding the tax base. A 2013 study noted Zambia’s fiscal regime was less competitive than peers, discouraging reinvestment,” he noted.
Mr. Nyambozhi observed that revenue from Small-Scale and Artisanal Mining sub-sector is minimal due to informality and under-regulation, hence the government is not capturing sufficient revenue across all mining tiers.
He also noted that although Artisanal mining is reserved for citizens, it lacks formal oversight, leading to revenue leakage, while Small-scale miners face bureaucratic hurdles, limiting their contribution to formal tax channels .
Mr. Nyambozhi stressed the need for the country to put in place policies to enhance citizen participation by maintaining artisanal mining exclusivity for Zambians and expand small-scale licensing quotas.
“Mandate minimum Zambian ownership e.g., 20–30% in mining ventures, similar to Tanzania’s model.”
“Establish funding mechanisms e.g., a Mining Development Fund for citizen-led ventures and provide technical training and enforce local procurement policies for mining inputs e.g., machinery and services to boost SMEs,” he proposed.
He called on government to expedite implementation of the Minerals Regulation Commission Act (2024) to replace outdated laws and centralize oversight.
Mr. Nyambozhi further called for investment in rail networks to reduce logistics costs, a key barrier highlighted in the National Copper Production Strategy.
“Allocate 10–15% of mining royalties to local development projects, as done in Peru.”
“Address power shortages by fast-tracking renewable energy projects for mines and strengthen enforcement of the Environmental Management Act (2011) and mandate community impact assessments,” Mr. Nyambozhi said.
Cecilia Chiluba 
Joseph Tembo 
News Desk