LUSAKA, ZAMBIA – Zambia’s largest taxpayer First Quantum Minerals (FQM), has pledged its support for the Bank of Zambia’s Export Proceeds Tracking Framework directives, which aim to ensure revenue from exports of goods and services, and the use of these funds, can be tracked through local Zambian bank accounts. 

The directives, which came into effect on January 1 this year, require exporters to match export records to funds flowing through Zambian bank accounts in order to give the Bank of Zambia greater visibility of both the source of the funds received and the use of these funds.  

“The central bank’s approach will enable greater transparency on the level of proceeds received in relation to exports as well as allowing any mismatches to be investigated. In addition, with exports being predominately in US dollars this also provides the central bank with the information to more effectively track these dollar flows and the impact this may have on the kwacha, which is key for the economy,” said FQM Country Manager Dr Godwin Beene. 

The company pledged its support and compliance with the new requirements and emphasised that it had for many years ensured export proceeds flowed through its Zambian bank accounts and had been reporting on this to government under Rule 18 (Proof of Exports) of the Zambia Revenue Authority’s VAT General Rules, which require exporters to provide documentary evidence of export proceeds having been deposited in a local bank. 

Tax payments from the mining sector as a whole rose by 11 percent to K43.3 billion in 2022, according to the recent independently audited report from the Zambia Extractive Industries Transparency Initiative (ZEITI). FQM’s Kansanshi Mining subsidiary was the largest contributor, paying K15 billion in tax, while FQM Trident made contributions of K8.6 billion. 

Source: Langmead & Baker