A Lusaka based Business and Financial Analyst says the decision by two major mines not to lay off workers in view of the new tax system is positive for Zambia’s economy.
Mopani Copper Mine and First Quantum Minerals Limited have written to the government informing the state that they will not cut down on its work force despite the new tax regime.
Munyumba Mutwale of Vennex Capital Zambia says this shows that the tax and revenue outlook will actually hold strong this year in view of the new tax system.
Mr. Mutwale said this when he featured on Money FM Business Radio’s Behind the Markets Segment that airs between 7:35 to 7:55 weekdays.
Mr. Mutwale says the onus now is on the government on managing expenditure in view of the revenue they will collect from the mining sector and other economic players.
“This is actually a big test for the government on how best they will be able to manage the expenditure side of this development,” he said.
He is confident that the government, if it manages well the funds, will be able to repay some of the loans the country acquired.