Zambia is the world's 8th largest producer of copper (2013) and the 9th largest producer of cobalt (2012). The mining sector accounts directly for 9% of GDP and 67% of exports. Indirectly, the mining sector may contribute as much as half of the GDP. In 2011-2013, Zambia's extractive revenue was roughly USD 1.5bn annually, which represented around 30% of total government revenue.
Foreign investment has helped push production levels up. In 2012 alone more than USD 4bn was invested in the mining sector. As a result, copper production increased by over 8% from 2012 to 2013 (Source: EITI Report 2013).
Decreasing copper prices pose a challenge to Zambia's economy which is undergoing somewhat of an energy crisis at present. Recently the government has made several changes to the fiscal regime for mining companies in search of optimising revenue over the medium term.
In addition to copper and cobalt, Zambia's mineral resources include gold, gemstones and various industrial minerals. Zambia has no proven oil reserves but exploration is taking place. The first licenses under the 2008 Petroleum Act were issued in 2011.
Zambia published its 2014 EITI Report on 15 December 2015. According to the report, Zambia’s mining sector contributed more than 77% of total export revenue and 32% of government revenue in 2014. Read more
The 2012 and 2013 Zambia EITI Reports were published in December 2014. This improved the timeliness of EITI reporting significantly. Import VAT was the largest revenue stream (27%) in 2013. The reports show that royalty payments increased due to growing production and higher royalty rates. In addition to revenue data, the reports include information on the state's participation in the sector through its holding company ZCCM-IH, and unilateral disclosure on social payments by companies. Read more about the 2012 and 2013 ZEITI Reports.
ZEITI focuses on informing debates on windfall taxes, transfer pricing, production figures, and anti-corruption. There is potential to link the EITI process more strongly to other government efforts to address these issues, and to bring all information on mining into one easy-to-access place.
Zambia became an EITI Candidate country in May 2009. In 2011, the country underwent its first Validation, and the EITI Board declared that meaningful progress had been made but not all requirements were met. Following a review conducted by the International Secretariat, Zambia was declared EITI Compliant in September 2012. To date, seven EITI Reports have been published, covering years 2008-2014.
- Report disaggregated by company and revenue stream.
- Report includes social payments, payments to the Environmental Protection Fund, and employee taxes.
- Details of the tax regime and production figures included.
- The Zambian EITI is undertaking a project to explore the potential for more real-time reporting of payments and revenues.