ABSTRACT
Zambia is blessed with many natural and mineral resources. Known for its copper production, the country has embarked on an ambitious gold mining project, as evidenced by the incorporation of a gold mining company by the government. With the advent of the COVID-19 pandemic, the gold mining sector will play a crucial role in the country’s economic recovery. Although mining is carried out on a large scale, the presence of artisanal and small-scale miners cannot be ignored. In this respect, therefore, this chapter formulates a context to understand how artisanal and small-scale gold mining can contribute meaningfully as a key sector of economic growth.
The chapter contributes to the general discourse about Zambia’s fiscal regime by discussing the frequent changes made in recent years – particularly between the years 2014 and 2020. Through a comparative analysis methodology, we utilize a literature review on mineral tax administration and compare the Zambian framework for mineral royalty tax with that of South Africa, a more established gold mining jurisdiction. Consequently, the chapter demonstrates how revenues accrued from gold mining must be applied to youth employment, empowerment, and economic diversification in order for the sector to contribute to post-COVID economic recovery. Further, the chapter spotlights the need for stability in the country’s fiscal regime, arguing that the fiscal regime should remain stable and hence should not be changed frequently. This is crucial if gold mining is to result in both tangible and intangible benefits for the country.
