When the President of Zambia announced the Economic Recovery Plan (ERP) for the period 2020 to 2023, many sectors were identified that would be key priority areas for the country’s turnaround. ZCCM IH’s key focus area in its new strategy was one of those areas.
ZCCM IH Board Chair, CEO flanked by Ministry of Mines Minister and Permanent Secretary
According to the ERP, available on the Ministry of Finance website, “the mining sector will continue to play a key role in the economy. To ensure predictability and in turn create sustained investment in the sector, Government will review the mining tax policy framework with a view to introducing a more stable mining tax regime. Government, working with the mining houses, will invest in systems to enhance transparency to seal loopholes and accurately quantify as well as value mineral content for tax purposes”.
The announcement of the ERP coincided with ZCCM-IH having an introspective of the journey it had embarked on its previous 2018-2023 Strategy which has been subsequently replaced with a new one. The purpose of the new strategic plan is to take stock of the progress made to date on the previous strategy and to identify and address any emerging opportunities in the mining sector.
On opportunities in the mining sector, the ERP presented an attractive case for the ZCCM IH strategy team.
A number of key measures were presented in the ERP that included:
A consultative mining tax regime review
A desire by GRZ to increase its stake in Konkola Copper Mines and bring on board equity partners
A desire to increase GRZ stake in Mopani Copper Mines
Increase investment in gold mining and processing that would facilitate the purchase of bullion standard gold by the Central Bank for reserves
A desire to improve mining regulation and the formalization of the sector
Creation of value chains for non-traditional minerals
All the above formed part of the foundation of thought process that guided the development of the new strategy. With clarity from fiscal on what the future would hold for the sector, CEO Mabvuto Chipata confidently stated in the new strategy that “they had developed the ZCCM Investments Holdings Plc (ZCCM-IH) new Strategic Plan 2020-2026 to pursue a mining focused investment strategy that is premised on growth and innovation, with a clear intent to drive the company to investment optimisation and financial excellence. This new strategic plan (the”2020-2026 Strategic Plan” or the “Strategic Plan”) has been motivated by the need for ZCCM-IH to re-focus its investments in mining and the mining value chain”.
Source : http://fizambia.com/?p=10139