Maravi

'Zambia can make good decisions without co-operating partners'

'Zambia can make good decisions without co-operating partners'
By Joan Chirwa
Friday September 21, 2007 [04:00]

ZAMBIA can manage to make good economic decisions without the involvement of co-operating partners, Plant Development Zambia Limited managing director Dr Bruno du Parc has said. Dr du Parc said while Zambia appreciates the role that international organisations such as the International Monetary Fund (IMF) and the World Bank have played, it was important to realise that the country could score great successes using its own development mechanisms.

"Zambia's development has been made from years of hardships and belt-tightening by all citizens and the entire nation," said Dr du Parc in response to IMF resident representative Birgir Arnason who expressed concern at Zambia's low earnings from copper and other mineral resources.

"I was here in Zambia at the time of privatisation when the Zambia Privatisation Agency (ZPA) was conducting discussions with Anglo American Company. When those left the negotiating table, all the international bodies, led by the IMF put terrible pressure on our government to privatise the mines immediately, at almost no cost.

Now how can IMF say that they are concerned that Zambia is not getting more from the mines when they are the ones who pushed the country into signing the agreements with the mining companies?"

Arnason, a couple of weeks ago, indicated it was tragic that the copper sector is not significantly contributing to government revenue at a time when world market prices for copper are at a historic high.

He said in an interview that the IMF was concerned about Zambia's failure to fully benefit from the current high earnings of the copper mining sector owing to the historic high world prices.

"It is very unfortunate, if not tragic, that the copper sector is not contributing very significantly to government revenue at a time when world market prices for copper are at a historic high.

This is because of the way the development agreements were structured at the time of privatisation," Arnason said.

"The IMF hopes government will be able to obtain more favourable terms in its negotiations with the mining companies. Copper is Zambia's most important natural resource, and Zambia should benefit more from it than it is doing right now.

The IMF therefore fully supports what government is trying to achieve in the renegotiation of the development agreements."

Zambia's mining sector has recorded enormous growth over the years due to a rise in copper prices on the international market, although insignificant amounts through taxes are being paid to the government.

Re-negotiation process of mining agreements is currently in place in an effort to raise mineral royalties from 0.6 per cent to three per cent for base metals and two to three per cent for precious metals.

Labels: HYPOCRISY, IMF

posted by MrK @ 6:34 AM