
Zambia: Comparing licensing rules vs practice
Examining discrepancies between licensing rules and practices to improve transparency and accountability in Zambia’s mining sector.
Context
In 2019, Zambia’s mining sector contributed approximately 31% of government revenues and 78% of export earnings, with over 3,100 companies operating in the industry. Licensing processes play a critical role in shaping the sector’s performance and economic contribution by determining which companies gain the rights to explore and operate mines and how they fulfil their obligations.
EITI reporting and Validation highlighted gaps in the disclosure of technical and financial criteria for assessing license applications, as well as deviations between established licensing procedures and actual practices. Drawing on these findings, Zambia’s Supreme Audit Institution conducted a risk assessment and subsequent audit to determine whether licenses were awarded in line with mining legislation and whether licensees complied with their obligations. The audit identified opportunities to strengthen the licensing process, including better application assessments, improved compliance in quarterly reporting by companies and enhanced oversight of export licenses.

Using data for reform
The findings of the audit garnered significant media attention and were presented in Parliament in March 2020. In response, the Ministry of Mines cancelled 874 licenses and began considering reforms to address weaknesses identified in licensing procedures. Zambia EITI and the Office of the Auditor General also began exploring opportunities to collaborate in achieving higher standards of transparency and accountability in managing Zambia’s mineral resources.
Zambia’s mining cadastre
Zambia’s mining cadastre portal provides a real-time overview of the licenses and companies that hold rights over individual blocks throughout the country.

The EITI process has helped bring to light opportunities to strengthen the licensing process in Zambia’s mining sector. It has supported the Ministry of Mines in identifying steps to make the license awarding process more transparent and address gaps identified by the Office of the Auditor General.