The Policy Monitoring and Research Center (PMRC) notes that Zambia’s mining industry has not been spared by the pandemic and says it is vital that the government put in place a fiscal regime that will attract investment vital in the post-COVID-19 era.
The local think tank believes the fiscal regime will respond to the prevailing times and attract greater investment in order to spur investment in the mining sector in the wake of the COVID-19 pandemic.
“The effects of the pandemic may inflict changes that in some cases may be permanent. It is therefore important for industry players to re-think strategies around commodity demand and pricing,” Bernadette Zulu, the think-tank’s executive director said.
She noted that the COVID-19 pandemic has disrupted industrial and economic output in countries and regions, with each industry facing unique characteristics that present novel challenges in the context of the pandemic.
The government, she said, should also ensure minimal disruptions to the supply chain especially critical supplies and consumables that keep the mining sector functional.
The think-tank has however expressed delight that the Zambian government has instituted a team of cabinet ministers, technical experts and trade unions to look at the sustainability of the mining sector during and beyond COVID-19.