Zambia's Performance on the Resource Governance Index
Zambia received a "partial" score of 61, ranking 17th out of 58 countries. Strong performance on the Institutional & Legal Setting and Safeguards & Quality Controls components was partly undone by a "failing" Enabling Environment score.
(out of 58)
(out of 100)
|18||Institutional & Legal Setting||71|
|14||Safeguards & Quality Controls||72|
Institutional & Legal Setting (Rank: 18th/58, Score: 71/100) learn more
Significant disclosure requirements and a clear system for collecting resource revenues led to a "satisfactory" score of 71.
The Mines and Natural Resources Ministry conducts open bidding and grants mining licenses in exchange for royalties. The Zambian Revenue Authority, an agency within the Finance Ministry, collects all payments from mining companies and deposits them in the treasury.
Environmental and social impact assessments are required prior to project implementation. There is no freedom of information law, and the Mines and Mineral Development Act of 2008 prohibits the Mines and Natural Resources Ministry from disclosing industry information without companies' consent.
Zambia has been an Extractive Industries Transparency Initiative (EITI) compliant country since September 2012.
Reporting Practices (Rank: 17th/58, Score: 62/100) learn more
The government discloses only partial data on most aspects of the mining industry, resulting in a "partial" score of 62.
National law clearly outlines the licensing process, including royalty and tax obligations that must be included in mining agreements. Information about granted licenses is available for a fee from the register of the Mines and Natural Resources Ministry, but contracts with companies remain confidential. The Environmental Council of Zambia provides the results of environmental and social impact assessments.
The Zambian Revenue Authority regularly publishes production volumes for copper, cobalt, and gold, and the names of companies operating in the country, but it does not provide data on disaggregated revenues. The Mines and Natural Resources Ministry does not regularly publish production or revenue data. Most of the ministry's information on mining operations is provided by companies; it lacks the capacity to require greater disclosure or to disseminate the information it receives. The Bank of Zambia regularly publishes production and export volumes, along with figures on the overall contribution of the mining sector to GDP. The Parliamentary Committee on Economic Affairs and Labor provides some information on mining revenues, but only on an ad hoc basis.
Zambia's 2012 EITI report, which assesses revenues for the 2009 fiscal year, includes copper prices, the value of resource exports, the names of companies operating in the country, production by company, social payments, production stream values, royalties, special taxes, dividends, license fees, and acreage fees.
Safeguards & Quality Controls (Rank: 14th/58, Score: 72/100) learn more
Zambia earned a "satisfactory" score of 72, reflecting thorough auditing requirements.
Parliament is responsible for overseeing the mineral sector, but often lacks the capacity to do so effectively. The Office of the Auditor General reviews the financial accounts of all mining companies and the Zambian Revenue Authority, which conducts its own internal reviews. Audit reports are presented to legislators, though not always in a timely manner, and are reviewed by Parliament's Public Accounts Committee and the Committee on Economic Affairs and Labor.
Licensing decisions may be appealed. Zambia requires companies to disclose beneficial ownership information, and government officials must report their financial interests in the sectors they oversee.
Enabling Environment (Rank: 30th/58, Score: 37/100) learn more
Zambia scored relatively poorly on global rankings of government effectiveness and budget openness, contributing to a "failing" score of 37.
State-Owned Companies (Rank: 15th/45, Score: 68/100) learn more
ZCCM-IH is a majority government-owned company that invests in private mining ventures. It is under the overseen by the Mines and Natural Resources Ministry. ZCCM-IH's annual audited financial reports are publicly available and include information on reserves, the names of operating companies, royalties, and dividends. ZCCM-IH also publishes information on its board of directors and decision-making rules.
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INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
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Key Economic Indicators
|GDP (constant 2011 international $ billion)||4.2||8.1||19.2|
|GDP per capita, PPP (constant 2005 international $)||1,028||1,158||1,431|
|Extractive exports (% total exports)||75||72||86|
|Source: World Bank. Extractive exports 2011 data from 2010.|