CTPD proposes imposition of Foreign Exchange Controls on mining sector
Written by Admin on May 2, 2021
The Centre for Trade Policy and Development has proposed the imposition of Foreign Exchange Controls on the mining sector to avoid the externalization of money by mining firms.
The Centre for Trade Policy and Development says despite Copper prices increasing to over US$9,000 on the London Metal Exchange, Zambia is losing out due to the externalization of revenue by mining companies.
CTPD Senior Researcher Extractives, Webby Banda says although the imposition of foreign exchange controls on the mining sector will have a negative bearing on the mining sector, such a move would reduce price transfer by mining firms which is currently rife.
Mr. Banda told Capital FM News that the country has not benefitted from the boom in Copper prices on the international market due to the externalization of money and the fact that mining firms are not re-investing in their Zambian operations.