BrZambia Announces Tax-Free Zone Plans | STRATFOR

Brief: Zambia Announces Tax-Free Zone Plans

Zambian Finance Minister Situmbeko Musokotwane announced April 13 plans to develop a special tax-free zone in the country for industries to process raw materials such as copper. According to Musokotwane, Zambia has nearly completed projects to improve the basic infrastructure in Copperbelt province, which shares a border with the Democratic Republic of the Congo (DRC) province of Katanga. Musokotwane said the improvements will help to attract investors. His statement was issued two days after DRC Minister of Mines Martin Kabwelulu announced Kinshasa’s plans to ban the export of unprocessed minerals from Katanga, and just a day after Congolese Finance Minister Matata Mponyo said that the DRC government must do a better job of cracking down on the smuggling of copper into Zambia through the Katangan transit town of Kasumbalesa. Most foreign firms engaged in mining activities in Katanga prefer to refine the ores into minerals in Zambia because it has a more transparent business environment and is relatively politically stable. Kinshasa, naturally, wants to even the balance by forcing companies to station value-added mining operations in the DRC. Zambia is simply attempting to preserve its advantage by creating even more incentive for mining companies to continue with business as usual. The creation of the tax-free zone is also a move to promote investment and jobs at a time when the ruling party in Zambia is preparing for elections in 2011.

Advertisements



    Leave a Reply

    Fill in your details below or click an icon to log in:

    WordPress.com Logo

    You are commenting using your WordPress.com account. Log Out / Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out / Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out / Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out / Change )

    Connecting to %s



%d bloggers like this: