Lusaka, Zambia – Economist Dr. Lubinda Habazooka has expressed deep concern over the foreign dominance in Zambia’s mining sector, highlighting that a staggering 95 percent of the industry is controlled by foreign entities.
Dr. Habazooka warned that this foreign ownership means that most of the revenue generated from Zambia’s mineral resources is leaving the country, rather than being reinvested into the local economy.
Speaking at a multidisciplinary conference organized by the Zambia Research and Development Centre (ZRDC) in Lusaka, whose Chairman is Dr. Richard Silumbe, Leader of the opposition Leadership Movement, Dr. Habazooka noted that this significant outflow of capital is detrimental to the country’s economic growth and sustainability.
“Every cent these foreign companies make will not stay in Zambia but will be transferred abroad,” he said. “This is a critical issue for the country’s long-term financial health.”
Dr. Habazooka also criticized the local enthusiasm over recent mining investments, such as the arrival of “cooler boxes” – a reference to the shipment of equipment used by mining companies.
While some have celebrated these investments, he cautioned that without proper regulatory oversight, these investments may not translate into substantial benefits for Zambia’s economy.
He explained that unless a mining company surpasses the minerals it has declared, it will not be subject to taxation, which could undermine the government’s ability to collect fair revenue from the sector.
“Until the companies begin to mine and declare more than the stated amount, they will evade paying taxes. This could leave Zambia vulnerable to a continuous drain of resources,” he added.
Dr. Habazooka’s comments come at a time when the mining sector remains a cornerstone of Zambia’s economy, contributing significantly to GDP, exports, and employment.
However, the economist’s remarks raise questions about the true economic impact of foreign investments and the need for stronger regulatory frameworks to ensure the sector benefits Zambians more equitably.
The ZRDC conference brought together experts from various disciplines to discuss the challenges and opportunities facing Zambia’s economic future, with Dr. Habazooka’s speech serving as a focal point for ongoing debates about the role of foreign investment in Zambia’s resource-based industries.
Zambia, rich in copper and other minerals, has long relied on the mining sector for economic growth. However, the country has faced challenges with foreign companies repatriating profits without adequate reinvestment into the local economy or social infrastructure.
As Zambia seeks to diversify its economy, questions about the sustainability of foreign-controlled industries remain at the forefront of national discourse.
