‘ECONOMIC DIVERSIFICATION SHOULD NOT NEGLECT ZAMBIA’S MINERAL SECTOR’

BUUMBA CHIMBULU writes@SunZambianTHERE is need to ensure Zambia’s mineral wealth and the mining sector are not neglected as the country pushes for economic diversification.Economic diversification should not prevent Zambia from exploiting its mineral wealth, says Stanbic Bank Zambia Client Coverage, Mining and Metals Manager, Namakuka Sichone.Ms Sichone emphasised that mining was significant to the local economy and need not be overshadowed by the country’s diversification agenda.She observed the need for Government and other stakeholders to increase their investment in the sector if the country was to enjoy maximum benefit from its vast mineral wealth and reach its development targets.Ms Sichone was speaking during the latest Stanbic Anakazi Online Conversations webinar.“As Zambia’s biggest bank by assets, we have a responsibility to help drive the economy forward through strategic financial support in key growth sectors. While we understand and unequivocally support the country’s diversification agenda, we realise that mining remains an essential pillar to the economy,” she said.The mining industry is an important pillar of the economy contributing about 12 percent and 75 percent of Gross Domestic Product and exports, respectively.Government has in recent years prioritised economic diversification to move away from over-dependence on the extractive industry in line with Vision 2030 and the Seventh National Development Plan.Zambia Chamber of Mines (ZCM) president, Goodwell Mateyo, said for the country to realise its development goals, there was urgent need to translate the country’s mineral resources into wealth to compliment investment in other growth sectors.Mr Mateyo noted that the world was on the verge of a fourth industrial revolution that would spark fresh interest in Zambia’s mineral resources.He however, warned that the country could miss out if investments in the extractive industry were delayed.“Due to the industry’s long-term nature, we need to start implementing measures to prop it up as soon as possible if we are to benefit from the fourth industrial revolution which is just on the horizon.“Mining investments have a long maturity period; taking years, sometimes decades before an investor can see a return,” Mr Mateyo said. The Sun