Zambia hones in on fiscal sweet spot for mining

Government takes bold step of requesting financial models from companies

Zambia, Africa’s second-largest producer of copper, is highly dependent on mining as its major productive industry. Mining contributes to 68% of the country’s foreign exchange earnings and 73% of total export value, according to the latest EITI reporting. Zambia has made radical changes to its mining taxation policies over the past decades, giving rise to much debate and discussion in the sector.

Financial modelling – the next step in EITI reconciliations?

Knowing how to model a project’s revenue can strengthen the capacity of the government.

When the EITI set out its work ten years ago, the core idea was to reconcile and compare the payments made by companies and governments to each other to see if they added up to the same amount. This can and has uncovered problems such as corruption. In 2013 the Standard was expanded to cover the whole value chain including the legal, fiscal,