No more Maize Export Bans, Government to remove the 10% maize tax-Mutati

No more Maize Export Bans, Government to remove the 10% maize tax-MutatiFinance Minister Felix Mutati has assured the private sector that government will ensure there are no more export bans. Mr Mutati said that government will also remove the ten percent tax on maize exports following an outcry from the concerned stakeholders.

Mr Mutati said that the government will see to it that it facilitates simplification of documents at border entry points to allow smooth trade within the African region.

Mr Mutati said that the Zambian government will also engage East African countries by Monday to smoothen the trading agreements so that there is more regional trade.

The Finance Minister was speaking in Lusaka today at the Regional Grain Trade Facilitation Forum organized by the Eastern Africa Grain Council (EAGC) and the Zambia Commodity Exchange (ZAMACE).

Speaking at the same meeting, Eastern Africa Grain Council Executive Director Gerald Masila said that it is an undeniable fact that African countries do not trade with each other sufficiently.

Mr Masila said that the meeting is therefore aimed at bringing together buyers and sellers with a view of increasing trade in the region.

Meanwhile, Zambia’s major mines are not exporting copper concentrate, Chamber of Mines Chief Nathan Chishimba said today, reacting to a call by the Mineworkers Union of Zambia that such exports should be banned.

MUZ General Secretary Joseph Chewe was quoted in a news report last week saying that government should ban the export of copper concentrate by mining companies, because refining it into finished cathode copper is “giving jobs to other countries”.

Mr. Chishimba said: “This call for a ban suggests there are massive exports of copper concentrate that need to be stopped. We don’t quite know where this is coming from, as the facts paint a very different picture.”

He said none of the large mines are exporting copper concentrate.

“It makes no economic sense anyway, because Zambia’s smelters are currently not running at full capacity, and are struggling to find enough concentrate to process. Concentrate is even being imported from the Democratic Republic of Congo to keep certain smelters operating efficiently,” he said.

“If there is any exporting of copper concentrate by Zambian mines, it is probably being done “at the margins” by very small-scale producers who are unable to have their copper concentrate processed locally for reasons related to their quality.”

“Smelters are complex pieces of infrastructure designed to handle copper concentrate only of a certain kind and quality,” said Chishimba. “If anyone is exporting concentrate, incurring all the additional taxes and expense of doing so, one can only assume the concentrate cannot be processed locally.”

In any event, Mr. Chishimba said, the answer to job creation in Zambia is not to ban legitimate business activity, but to grow the economy and make it more competitive.

“We cannot ban our way to prosperity and employment,” he said.

As for the MUZ leader’s statement that all copper concentrate produced in Zambia should be refined into finished copper cathode locally, Mr. Chishimba said Zambia does not have the refining capacity to do this.

Converting anode copper (95% pure) into cathode copper (99.95% pure) is done in a refinery through a process known as electrorefining.

Zambia only has two refineries, and their capacity is not sufficient to handle all the copper anode produced by the Zambian mining industry.

“In any event, it is a relatively low value-add process, and it is also extremely power-intensive – an important consideration given Zambia’s current power deficit.”

Mr. Chishimba said it would be more helpful if stakeholders addressed their concerns directly with the industry in a spirit of dialogue and engagement, rather than making statements to the media without full knowledge of the facts.