Skip to main content
Lusaka, Zambia

Zambia

Status
High
Joined
15 May 2009
Latest validation
2021
Latest data from
2019
Visit the country website

Overview and role of the EITI

As Africa’s second-largest producer of copper, Zambia is highly dependent on mining, which accounted for 77% of total export earnings and 28% of government revenues in 2019. Zambia’s mining taxation policies have undergone numerous changes over the past decades. In 2018, the government changed its minerals tax regime for the 10th time in 16 years to maximise revenues and foreign investment. There has been public debate on establishing an optimal and stable fiscal regime.

In this context, Zambia EITI (ZEITI) has been using the EITI process and data disclosures to inform discussions on the mining fiscal regime and benefit sharing. ZEITI has also been working to inform regulatory reform and improving the underlying procedures for monitoring production and export data.

Economic contribution of the extractive industries

77%
to exports
9.9%
to GDP
27.8%
to government revenues
2.4%
to employment
  • Step 1
  • Step 2
  • Step 3

Download country data

Download open data on government and company revenues, revenues by revenue stream and indicator, summary data and more.


Innovations and policy reforms

  • ZEITI facilitated training for government officers and other stakeholders on analysing financial statements and financial models in March 2021. 

  • ZEITI disclosures helped to identify gaps in the licensing procedures and criteria. Zambia’s Supreme Audit Institution drew on these findings in its risk assessment, subsequently auditing whether licenses were awarded in line with the mining legislation, and whether licensees then adhered to their obligations. The audit identified a range of opportunities to strengthen the licensing process, including assessment of applications, compliance in quarterly reporting by companies and oversight of export licenses.
  • To strengthen the quality of disclosures and improve the contribution of the extractive sector to domestic resource mobilisation, ZEITI participated in a study that assessed the underlying systems for monitoring production and export data in 2019.

Extractive sector data

Production and exports

Copper

Revenue collection

Level of detail 2

Revenue distribution

2019
Standardised revenue types

Top paying companies

2019

Extractive sector management

Licenses and contracts

The Zambian mining sector is structured as a licence system. The Mines and Minerals Development Act determines how mineral rights are issued, the types of rights and their conditions, which are granted by the Director of Mines Development Department.

Zambia has two cadastre offices; one at the central level (to process applications for mining rights) and one at the provincial level (to forward applications to the central office). Prospecting licenses are normally granted by the Geological Survey Department, but auctioning may be undertaken in areas where known mineral resources exist. The Ministry of Mines and Minerals Development maintains an online mining cadastre.

Oil and gas rights are issued by the Minister of Mines and Mineral Development under the Petroleum Act. Licences are issued through competitive bidding.

While no legal framework exists to mandate contract/license disclosure, some extractive licenses, concessions and development agreements are publicly available through the Resource Contracts Portal.

Beneficial ownership

In 2017, the Government of Zambia amended the Companies Act to include beneficial ownership disclosure. The legislation provides for the disclosure of beneficial owners and the creation of a beneficial ownership register hosted by the Patents and Companies Registration Agency (PACRA). In 2019, the government developed regulations for implementing the legislation.

In 2021, Zambia joined the Opening Extractives Programme, a global programme aiming to transform the availability and use of beneficial ownership data. PACRA is currently working on developing a beneficial ownership register and strengthening the quality of beneficial ownership data. Legal and beneficial ownership data is available from PACRA upon payment of an administrative fee.

Revenue distribution

Zambia’s legal and fiscal regime provides for extractive revenues to be transferred to the consolidated national budget. There are no earmarked subnational transfers or funds within the national budgeting process.

EITI reporting has been used by civil society organisations to influence legal reform on taxes levied by local districts, and to advocate for accountability in subnational level revenue flows.


EITI implementation

Governance

Zambia EITI is administered by the Zambia Multi-Stakeholder Group (MSG), also known as the Zambia EITI Council (ZEC). The MSG is hosted by the Ministry of Mines and Minerals Development and chaired by the Secretary to the Treasury.

Timeline

Validation

Zambia achieved a high overall score (90 points) in implementing the 2019 EITI Standard in December 2021. Its next Validation is expected to commence in October 2024.

Scorecard

Latest Validation: 8 December 2021
Year

Assessment of EITI requirements

  • Not met
  • Partly met
  • Mostly met
  • Fully met
  • Exceeded
Component View more
Score

The three components of Validation each receive a score out of 100, as follows:

Low 0-49
Fairly low 50-69
Moderate 70-84
High 85-92
Very high 93-100
View more

Outcomes and impact

93 Very high
Scorecard by requirement
Assessment
Assessment of EITI Requirements

Validation assesses the extent to which each EITI Requirement is met, using five categories. The component score is an average of the points awarded for each requirement that falls within the component.

Outcomes and impact

Effectiveness and sustainability indicators

3

1.5 Work plan

90

Zambia have fully met the objective that the annual planning for EITI implementation supports implementation of national priorities for the extractive industries while laying out realistic activities that are the outcome of consultations with the broader government, industry, and civil society constituencies. The 2021-2022 workplan is structured using a clear results chain showing how the activities are expected to contribute to identified outcomes and impact. The templates demonstrate clear links between the objectives and national priorities including the Companies Act implementation, the 7th National Development Plan, Zambia’s Economic Recovery Plan (2020-2023) and public interest as indicated through media coverage. The workplan covers the scope of the standard and there is focus on newer requirements of the Standard including beneficial ownership disclosures, gender mainstreaming and environmental disclosures. Operational and strategic objectives related to Validation, systematic disclosures, and the institutionalisation of EITI implementation through the ZEITI Bill are also covered in the workplan. The workplan is costed and identifies funding sources. The level of progress in addressing this requirement has been maintained since the previous Validation.

7.1 Public debate

90

Zambia have fully met the objective to enable evidence-based public debate on extractive industry governance through active communication of relevant data to key stakeholders in ways that are accessible and reflect stakeholders’ needs. As per the requirement, Zambia have ensured that disclosures are comprehensible by disclosing summaries of findings from audit reports relevant to the sector, as well as MMMD monitoring reports on production and export data. EITI data is actively used to inform Parliamentary debate and decision-making within government as evidenced by ZEITI being asked to provide evidence on licensing, legal reform, and discussions on the mining fiscal regime. Zambia has exceeded the requirements by undertaking more analytical work in the form of financial modelling reports, a quarterly production bulletin and reports that cover ASM and other issues, in addition to responding to regular media and governmental requests for data and analysis. Even though dissemination efforts have been affected by the COVID-19 pandemic, events have been led by civil society members of the ZEC, and ZEITI meetings have been live-streamed through social media channels. However, ZEITI is not exceeding all recommendations of this requirements as it does not yet provide sufficient evidence for catering to differences in age, gender, ethnicity, languages, or others. Written comments by ZEC argued that meetings with local communities are held in local languages and in English, with an explicit focus on gender balance in both engagement and in participation in outreach activities. While recognising these comments, the International Secretariat did not locate explicit documentation or data translated to local languages or specific actions that would cater to marginalised groups in the documentation provided, with the exception of a hashtag referring to gender equality.

7.2 Data accessibility and open data

90

Zambia have fully met the objective to enable the broader use and analysis of information on the extractive industries, through the publication of information in open data and interoperable formats. ZEITI has an policy that mandates open format publication and use, and publish EITI data on production, exports, and licences in Excel format on their ZEITI portal. ZEITI has finalised all summary data files for all fiscal years covered by EITI reporting. Data on production and exports is collated through the government system named MOSES and is shared monthly with Zambia EITI, Zamstats and ZRA. However, the government and companies themselves do not publish most information online using open formats. Zamstats publishes monthly data in the form of a pdf bulletin. This covers some export data. Zamstats also has an open data portal although this does not have the latest data. Zamstats and ZEITI have begun applying Harmonised System commodity codes in their regular reporting which ensures much better clarity and comparability in their disclosures.

7.3 Follow up on recommendations

90

Zambia have fully met the objective to ensure that EITI implementation is a continuous learning process that contributes to policymaking, based on the ZEC regularly considering findings and recommendations from the EITI process and acting on those recommendations it deems are priorities. The ZEC uses the EITI report to review progress in meeting recommendations from the EITI process. ZEITI also submitted evidence demonstrating that recommendations from EITI implementation are the focus of the current workplan and there is an annual process of reviewing progress in implementation. This implementation status reports highlights if a recommendation is at planning stage, partially implemented or fully implemented. The level of progress in addressing this requirement have been maintained since the previous Validation.

7.4 Review of outcomes and impact of implementation

90

Zambia have fully met the objective of ensuring regular public monitoring and evaluation of implementation, including evaluation of whether the EITI is delivering on its objectives, with a view to ensuring the EITI’s own public accountability. The level of progress in addressing this requirement have been maintained since the previous Validation.

Stakeholder engagement

92.5 High
Scorecard by requirement
Assessment
Assessment of EITI Requirements

Validation assesses the extent to which each EITI Requirement is met, using five categories. The component score is an average of the points awarded for each requirement that falls within the component.

Multi-stakeholder oversight

1.1 Government engagement

90

There is evidence of high government engagement in EITI implementation in Zambia. Both the Ministry of Mines and Mining Development and the Ministry of Finance actively participate in EITI. The Secretary to the Treasury chairs the ZEC. The Minister of Mines recently launched the 2019 EITI report. The national secretariat has high capacity and commitment. The government partly funds EITI implementation. There was a reduction in funding in 2020, in the wake of the Covid-19 pandemic. The Secretariat’s assessment is that the objective of the government’s engagement in EITI implementation is fully met and the level of progress in addressing this requirement have been maintained since the previous Validation.

1.2 Industry engagement

90

Zambia have fully met the objective of ensuring that extractive companies are fully, actively and effectively engaged in the EITI, both in terms of disclosures and participation in the work of the multi-stakeholder group, and that the government ensures an enabling environment for this. The representative body of small-scale miners also actively participate in EITI activities. The level of progress in addressing this requirement have been maintained since the previous Validation.

1.3 Civil society engagement

90

Zambia have fully met the objective of ensuring that civil society is fully, actively and effectively engaged in the EITI process, and that there is an enabling environment for this. The active participation of civil society in the EITI process is key to ensuring that the transparency created by the EITI can lead to greater accountability and improved governance of oil, gas, and mineral resources. The provisions related to civil society engagement seek to establish the conditions that permit this to occur over time. Documentation and stakeholder consultations imply there has been a legal dispute between a mining company and a CSO representatives. However, all stakeholders confirmed that the constituencies resolved representation issues and the matter separately without affecting EITI implementation. Obstacles do not influence CSOs’ freedom to express views, operate, and associate on issues related to the EITI. The level of progress in addressing this requirement have been maintained since the previous Validation.

1.4 MSG governance

100

The ZEC have exceeded the objective that there is an independent ZEC that can exercise active and meaningful oversight of all aspects of EITI implementation that balances the three main constituencies’ (government, industry and civil society) interests in a consensual manner. As a precondition for achieving this objective, the ZEC must include adequate representation of key stakeholders appointed on the basis of open, fair and transparent constituency procedures, make decisions in an inclusive manner and report to wider constituencies. The ZEC has technical working groups on gender and legislative advocacy, and has considered gender-balance in the election of new members. Many elections have been postponed due to the COVID-19 pandemic until Spring 2022, but newly elected representatives are conforming with this ambition within each constituency (4 out of 10 new representatives were female from 2020 onwards). ZEITI has been able to extend government participation beyond the ZEC members. Agencies such as PACRA and the OAG are actively engaged in EITI implementation. Government departments share information requested by EITI regularly and make use of EITI disclosures and analysis in their work. ZEITI has emerged as a platform to consult and influence policy discussions from an evidence basis. Government engagement is beyond regular participation in the ZEC and in the reporting process. The government consults ZEITI in various policy processes. This includes on legal reform such as on the ongoing review of the Mines and Minerals Act and the proposed development of the ZEITI Bill. PACRA has consulted with ZEITI on strengthening BO disclosures while the Ministry of Finance and the Ministry of Mines have consulted with ZEITI on the mining fiscal regime including on engagements with the IMF.

Transparency

83.5 Moderate
Scorecard by requirement
Assessment
Assessment of EITI Requirements

Validation assesses the extent to which each EITI Requirement is met, using five categories. The component score is an average of the points awarded for each requirement that falls within the component.

Overview of the extractive industries

3.1 Exploration data

90

Zambia have fully met the objective of ensuring public access to an overview of the extractive sector in the country and its potential, including recent, ongoing, and planned significant exploration activities. The level of progress in addressing this requirement have been maintained since the previous Validation.

6.3 Contribution of the extractive sector to the economy

90

Zambia have fully met the objective of ensuring a public understanding of the extractive industries contribution to the national economy and the level of natural resource dependency in the economy. The level of progress in addressing this requirement have been maintained since the previous Validation, providing data for the extractive sector’s contribution to GDP, government revenues, and exports. Additionally it provides employment data disaggregated by gender. ZEITI notes that there is no data to estimate informal sector activity, though it is not a significant contributor to macroeconomic indicators.

Legal and fiscal framework

2.1 Legal framework

90

Zambia have fully met the objective of ensuring public understanding of all aspects of the regulatory framework for the extractive industries, including the legal framework, fiscal regime, roles of government entities and reforms. The level of progress in addressing this requirement have been maintained since the previous Validation.

2.4 Contracts

90

Zambia have fully met the Phase I of this requirement, with the objective to ensure the public accessibility of all licenses and contracts underpinning extractive activities. Additional efforts will be needed for Zambia to fully meet Phase II of the requirement, to be assessed in its next Validation. Licenses awarded in 2021 are not publicly disclosed. In their comments to the draft Validation report, ZEC noted that government entities do not deviate from its (non-disclosure) policies on license and contract disclosures. Additionally, there is currently no legal framework or practice guaranteeing comprehensive disclosure of the contents of future or current licenses. However, Zambia EITI have made a first attempt to provide a partial list of which extractive licenses, concessions and development agreements are publicly available, through third-party sources, but only for a few licenses awarded ahead of the latest legislation. Zambia EITI also publishes the complete list of licenses that exist in Zambia, while noting that no license or contract is currently systematically disclosed apart from through third-party sources. However, Zambia EITI is also currently undertaking a study to further its ambitions for public disclosure of all licenses and contracts awarded or amended in 2021 onwards. ZEC noted that this study, combined with other activities such as adoption of a transparency bill, all represent a cogent plan for overcoming technical and legal challenges to contract disclosure. In its interpretation of what constitutes a “published plan with a clear time frame reflected in work plans addressing any barriers to comprehensive disclosure”, the International Secretariat considers that Phase I of EITI requirements on license and contract disclosure have been fully met. However, there are still concerns related to whether Zambia EITI will be able to fully meet the requirements of Phase II, when legal and practical barriers to contract disclosure must have overcome and that all new extractive contracts and licenses are fully disclosed from 1 January 2022 onwards.

6.4 Environmental impact

Not assessed

Requirement 6.4 is an encouraged aspect of the EITI Standard and is therefore not assessed in Validation unless there is evidence that the country has exceeded the requirement. Still, Zambia have met the objective of providing a basis for stakeholders to assess the adequacy of the regulatory framework and monitoring efforts to manage the environmental impact of extractive industries, and to assess extractive companies’ adherence to environmental obligations. The report clarifies the role of various government agencies, the nature of an Environmental Protection Fund which provides financial assurances of environmental rehabilitation after mine closure, as well as the lack of public access to Environmental Impact Assessments and similar documentation through centralised government portals.

Licenses

2.2 Contract and license allocations

100

Zambia have exceeded the objective of this requirement, to provide a public overview of awards and transfers of oil, gas and mining licenses, the statutory procedures for license awards and transfers and whether these procedures are followed in practice. While an audit report of 2017 caused concerns surrounding the award processes of several mining licenses, the report now summarises these findings, as well as the recommendations and follow up from government. The report goes beyond what is required by the EITI Standard in providing an overview of non-trivial deviations from statutory processes.

2.3 Register of licenses

90

Zambia have fully met the objective of this requirement to ensure the public accessibility of comprehensive information on property rights related to extractive deposits and projects. While some disclosure gaps were identified through documentation review, the gaps were remedied by the Mining Cadastre Office by the time of drafting this assessment, and the level of progress in addressing this requirement have been maintained since the previous Validation.

Ownership

2.5 Beneficial ownership

60

Zambia have mostly met the objective of this requirement to enable the public to know who ultimately owns and controls the companies operating in the country’s extractive industries, particularly those identified by the ZEC as high-risk, to help deter improper practices in the management of extractive resources. While most aspects of Phase I of beneficial ownership requirements have been addressed, there is no evidence that the ZEC has published an assessment of the comprehensiveness and reliability of beneficial ownership disclosures to date from all companies holding or applying for extractive licenses (i.e. not only of material companies included in the scope of EITI reporting in accordance with EITI Requirement 2.5.c). In its comments to the draft version of this assessment, ZEC indicated that most technical aspects of the requirement are addressed, though also confirmed that some gaps and challenges exist. In addition, the PACRA's company register and portal does not provide the name of the stock exchange where publicly-listed companies (or their wholly-owned subsidiaries) are listed. Lastly, legal ownership of extractive companies is only partially disclosed by Zambia EITI, and while the PACRA registry contains some information on legal owners, for most companies it is not possible to ascertain that all legal owners and their respective shares have been disclosed. BO data is not available through the PACRA register for the material companies.

State participation

2.6 State participation

90

Zambia have fully met the objective of ensuring an effective mechanism for transparency and accountability for well-governed SOEs and state participation more broadly through a public understanding of whether SOEs’ management is undertaken in accordance with the relevant regulatory framework. This information provides the basis for continuous improvements in the SOE’s contribution to the national economy, whether financially, economically or socially. The level of progress in addressing this requirement have been maintained since the previous Validation.

4.2 In-kind revenues

Not applicable

Requirement 4.2 remains 'Not Applicable' in Zambia in the period under review. The SOE operating in the mining sector, Zambia Consolidated Copper Mines – Investment Holding (ZCCM-IH), or other government agencies do not receive revenues paid in kind or directly from the sale of the state’s share of production.

4.5 SOE transactions

90

Zambia have fully met the objective of ensuring the traceability of payments and transfers involving SOEs and strengthen public understanding of whether revenues accruable to the state are effectively transferred to the state and of the level of state financial support for SOEs. The level of progress in addressing this requirement have been maintained since the previous Validation.

Production and exports

3.2 Production data

60

Zambia have mostly met the objective of ensuring public understanding of extractive commodity(ies) production levels and the valuation of extractive commodity output, as a basis for addressing production-related issues in the extractive industries. Since the previous Validation production values of Amethysts, Dolomites and Quartz have not been provided for 2019. ZEITI has also not performed additional disclosures as in past years to cover additional commodities missing from EITI reports. Comments from ZEC provided reasoning behind why such data is difficult to collect and publish, but did not indicate why Zambia EITI’s former disclosures of production data were not extended to 2019. Lastly, as identified in previous Validations, constraints continue to exist in the MOSES system’s scope. Thus this leads to capacity constraints of the related government agencies (MMMD and ZRA), providing comprehensive and disaggregated production data due to a non-digital monitoring system for industrial and energy minerals, as well as gemstones.

3.3 Export data

60

Zambia have mostly met the objective of ensuring the public understands of extractive commodity(ies) export levels and the valuation of extractive commodity exports, as a basis for addressing export-related issues in the extractive industries. Since the previous Validation, Zambia has improved on data access and interoperability by publishing export numbers in open data formats applying international data standards. However, export volumes and values of different gemstones and industrial minerals have not been provided for individual commodities nor has it been for cement or limestone products specifically. Comments from ZEC referred to example data from ZRA, though none of the information appeared to cover the gaps of 2019 export volumes and values for all commodities.

Revenue collection

4.1 Comprehensiveness

90

Zambia have fully met the objective of ensuring comprehensive disclosures of company payments and government revenues from oil, gas, and mining as the basis for detailed public understanding of the contribution of the extractive industries to government revenues. The level of progress in addressing this requirement have been maintained since the previous Validation.

4.3 Infrastructure provisions and barter arrangements

Not applicable

Requirement 4.3 remains 'Not Applicable' in Zambia in the period under review. The level of progress in addressing this requirement have been maintained since the previous Validation.

4.4 Transportation revenues

Not applicable

Requirement 4.4 remains 'Not Applicable' in Zambia in the period under review. The level of progress in addressing this requirement have been maintained since the previous Validation.

4.7 Level of disaggregation

60

Zambia have mostly met the objective of this requirement to ensure disaggregation in public disclosures of company payments and government revenues from oil, gas and mining that enables the public to assess the extent to which the government can monitor its revenue receipts as defined by its legal and fiscal framework, and that the government receives what it ought to from each individual extractive project. Zambia has adequately identified what constitutes a project in the Zambian context, as well as which revenue streams are levied/imposed on project level. The approach taken to report revenues by Zambia EITI is also fully in line EITI's Requirement 4.7. However, there are weaknesses in companies' actual reporting of revenues by project, where only 70% of companies’ payments that were made by project were reported as such. The companies that failed to provide information with adequate detail include Kalumbila Minerals Limited, ZCCM Investments Holdings Plc, Kagem Mining Ltd, Sino-Metals Leach Zambia Ltd, Larfage Cement Zambia Plc, and CNMC Luanshya Copper Mines Plc. Even so Zambia EITI has greatly increased the coverage of data per project, increasing its coverage from 30% in 2018 to 70% in 2019. However, the barriers for the government to report mineral revenues by project is an issue for the sustainability for the availability of project-level data, and the report falls short of providing concrete recommendations for how to overcome this issue of government systems in the medium- to long-term.

4.8 Data timeliness

90

Zambia have fully met the objective of ensuring that public disclosures of company payments and government revenues from oil, gas and mining are sufficiently timely, as defined by the EITI Standard, to be relevant to inform public debate and policy-making. The level of progress in addressing this requirement have been maintained since the previous Validation.

4.9 Data quality and assurance

90

Zambia have fully met the objective of ensuring that appropriate measures have been taken to ensure the reliability of disclosures of company payments and government revenues from oil, gas and mining. The aim is for the EITI to contribute to strengthening routine government and company audit and assurance systems and practices and ensure that stakeholders can have confidence in the reliability of the financial data on payments and revenues. The EITI report falls short of providing an explicit/detailed overview of which precise companies or government entities have undergone audits. Still, stakeholder consultations confirmed that the additional assurance procedures are sufficient for stakeholders to maintain confidence in the reliability of the financial data in the EITI Report. Finally, the report improves from previous validations of Zambia by providing an assessment of the reliability of government and company data, and an independent review by the EITI Secretariat of companies’ filings did not reveal any significant deviation by companies from their annual returns obligations to PACRA, even if deviations were publicly accessible and confirmed by the IA.

Revenue management

5.1 Distribution of revenues

90

Zambia have fully met the objective of ensuring the traceability of extractive revenues to the national budget and ensure the same level of transparency and accountability for extractive revenues that are not recorded in the national budget. The level of progress in addressing this requirement have been maintained since the previous Validation.

5.3 Revenue management and expenditures

Not assessed

Progress in addressing Requirement 5.3 is not assessed in Validation unless there is evidence that the country has exceeded the requirement. The level of progress in addressing this requirement have been maintained since the previous Validation.

Subnational contributions

4.6 Subnational payments

90

Zambia have fully met the objective to enable stakeholders to gain an understanding of benefits that accrue to local governments through transparency in companies’ direct payments to subnational entities and to strengthen public oversight of subnational governments’ management of their internally-generated extractive revenues. Direct payments made by companies to subnational government entities are included in the EITI Report, consisting of property rates and annual business fees paid directly to local councils. The level of progress in addressing this requirement have been maintained since the previous Validation.

5.2 Subnational transfers

Not applicable

Requirement 5.2 remains 'Not Applicable' in Zambia in the period under review. No transfers between national and subnational government entities are explicitly related to only revenues generated by the extractive industries and mandated to be distributed using a revenue-sharing formula. The level of progress in addressing this requirement have been maintained since the previous Validation.

6.1 Social and environmental expenditures

Not applicable

Requirement 6.1 remains 'Not applicable' in Zambia in the period under review. Zambia does not have mandatory social expenditures. Voluntary expenditures (Annex 8) have been unliterally disclosed disaggregated by beneficiary, cash/in-kind and the nature of support (with the exception of Lubambe, Maamba, Kansanshi). Mandatory environmental payments that relate to the Environment Production Fund are partially disclosed though we do not find to be payments to government. Payments to the EPF only appear to be held in trust by the Government of Zambia, until mine project closure. If a company adequately rehabilitate their mine areas, a company would be reimbursed their original contribution to the EPF. On this basis, we conclude that payments to the EPF are not environmental payments from companies to governments, as the government only has a contingent claim to the EPF assets. This requirement would therefore only be applicable under Requirement 6.4. Therefore, the level of progress in addressing this requirement have been maintained since the previous Validation.


Key documents


Contacts