By MAIMBOLWA MULIKELELA –
THE World Bank has completed the Mineral Investment and Governance Review (MInGov) on Zambia aimed at easing investor decisions before they could invest.
The diagnostic tool measures each country’s governance and stability in the mining sector which has a direct impact on investment in resources rich countries.
World Bank country manager for Zambia Ian Ruthenberg said his organisation had just completed MInGov review on Zambia stating that the country remains attractive to investors.
Ms Ruthenberg said it collects and shares information on the mining sector governance, its attractiveness to investors, and how it contributes to national development.
The key findings of the review show that Zambia is an attractive place for investment due to favourable geology, its long history of mining, its political stability, low risks of expropriation, high levels of security and a relatively favourable economic environment.
Ms Ruthenberg said this at the just ended 6th Zambia Mining and Energy Conference (ZIMEC) in Lusaka.
“However, there are areas of potential improvement. Also, despite the different views of different stakeholder groups, the review highlights areas where there is consensus,” she said.
Ms Ruthenberg said this was helpful to identify the low hanging fruit and areas to build trust.
“It is important for players in the mining and energy sector working together with all transparency because if the sector continues to operate in a fragmented manner, a downward spiral in Zambia mining sector will continue,” she said.
Most of the investment decisions were largely influenced by the manner in which countries governance was structured.