Zambia plans to establish a state-owned company to trade in minerals, with the cabinet approving a Special Purpose Vehicle for investment and trading.
According to Zambia’s Minister of Mineral Resources, Information and Media Cornelius Mweetwa, the new approach intends “to move away from the dividend payment model for mineral resources and adopt a production-based sharing mechanism to ensure benefits accrue to the people of Zambia beyond statutory obligations.”
By creating a state mineral trading company, Zambia aims to gain insights into the flow of revenues from its mineral resources and enhance local economic benefits.
Earlier this year, Zambian President Hakainde Hichilema underscored the need to establish a state-owned company, citing the success of commodity traders like Glencore Plc and Trafigura and expressing Zambia’s ambition to generate similar value from its mineral resources.
The majority of Zambia’s export earnings are currently derived from copper production, which accounts for 70%, as well as emeralds, which contribute 20%.
