Finance your own development – Norwegian Economist advises govt.
An Economist at the Norwegian
Embassy has urged the Zambian Government to finance its own development in
order to fully benefit from the revenues collected from the extractive
Norwegian Embassy Country Economist, Olav Lundstol says
Zambia will not benefit fully from the revenues collected from the extracted
industries if it continues to depend on donor support.
that foreign support would always attach conditions when investing in the
country and hence the government would only take a small percentage from the
revenues realized from the extractive industries.
“It is important for
government to utilize its own resources within the country because this I linked
to good governance,” he said.
He also said aid is important but that
having national ownership of resources would mean that revenues collected remain
in the country without conditions.
Mr. Lundstol further stated that
Zambia still requires foreign aid but that it should encourage people to
generate revenue from the extractive industries as this would bring development
and allow the country to move towards the vision 2030.
And Lundstol says
after 40 years of mining copper, Zambia would have been economically stable but
that due foreign dependency it realizes lower percentages of copper earnings
from the mines.
He explained that the country would have been the hub of
copper mining in the region and export levels would have been higher adding that
the country is rich in natural resources.
He said copper earnings would
have increased to about $30 billion in the past years but that the government
has had very low take.
Lundstol further urged the government to have a
specialized mining tax administration and understand, scrutinize and negotiate
with the companies under extractive industries.
He charged that the
government does not carry out audits in the mining sector on how revenue is
being generated and hence it is not aware of the export levels within the
Meanwhile the Norwegian government has disbursed
about $60 million throughout Zambia after recognizing the gap between the
government and the extractive industries.
The programme is aimed at
promoting new development through encouraging the communities’ involvement in
generating revenues from the resources within their areas.