By MAIMBOLWA MULIKELELA –

ZAMBIA and other mining countries should use the downturn in the prices of copper to prepare for a boom and maximise the benefits.
South African economist-cum-author Victor Kgomoeswana said the decline in the prices of commodities like copper would one day end and Zambia, as a major copper producer, should brace for a boom.
“We all know that a downturn always leads to a pick-up in commodity prices. It is then that Zambia will maximise its resources through strong policies.
“The country has involved in the commodities market for a long time and should be maximising on this year,” he said when he addressed journalists at the Stanbic Bank head office in Lusaka.
Mr Kgomoeswana said that Zambia produced what was arguably the best copper in the world but there was historically no country in the world that had grown its economy or created wealth by exporting commodities.
“What Zambia needs to do now is add value to its copper and any of its produce by ensuring that it exports finished products. This will allow it to compete much more favourable on the international market,” he said.
On the current mining tax situation, Mr Kgomoeswana said Zambia was far too important to be undecided on issues of the mineral royalty and hopes the decision on the mining tax regime will be made in the best interest of the people.
He said the decision on the mining taxation should be inclusive of stakeholders.
Mr Kgomoeswana said Zambia was an important country in the region and, therefore, its indecision could affect a lot more countries.
“Zambia is far too important to be undecided about the matter as crucial to its economy as mining so we hope that the April 8, 2015 deadline will be taken seriously and decision will be made considering
what is in the best interest of the people of Zambia,” he said.
He said Zambia was one of the countries that he considered to be punching below its weight because of lack of finality on the mineral royalty tax.
“I think in the end investors don’t care what you say as long as you say it firmly with conviction enough and act on it consistently because investing in mining means taking a decision that will last 25 to 30 years,” he said.