FQM Backs Zambia’s Export Transparency Initiative

First Quantum Minerals (FQM), Zambia’s leading taxpayer, has expressed strong support for the Bank of Zambia’s Export Proceeds Tracking Framework. This initiative aims to ensure transparency in tracking foreign exchange earned from exports through local bank accounts.

Implemented in January 2024, the framework requires exporters to link their export records with corresponding funds deposited in Zambian banks. This enhanced visibility allows the Bank of Zambia to monitor both the source and utilisation of export revenue, particularly in U.S. dollars.

“We commend the central bank’s proactive approach in promoting transparency. This initiative will not only clarify the true level of export earnings but also facilitate the investigation of any discrepancies. Additionally, by monitoring dollar flows from exports, the Bank of Zambia can gain valuable insights into their impact on the Zambian Kwacha and make informed decisions to stabilise the economy,” stated Godwin Beene, FQM Country Manager.

FQM reiterated its commitment to complying with these new regulations. They have consistently channelled export proceeds through Zambian bank accounts for many years, exceeding the requirements set by Rule 18 (Proof of Exports) of the Zambia Revenue Authority’s VAT General Rules. This rule mandates exporters to document the deposit of export earnings in a local bank.

The mining sector’s tax contributions in 2022 rose by 11% to K43.3 billion, as reported by the recent independent audit conducted by the Zambia Extractive Industries Transparency Initiative (ZEITI). FQM’s Kansanshi Mining subsidiary emerged as the largest contributor, paying K15 billion, followed by FQM Trident with K8.6 billion in taxes.

By supporting this initiative, FQM demonstrates its commitment to responsible business practices and contributes towards building a more transparent and robust economic framework in Zambia.

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