Q FM Africa's Modern Radio
The World Bank has today officially launched its Fourth Zambia Economic Brief with a caution against the proposed shift in the country’s mining tax regime.
The brief that has focused on financial inclusion, has warned that the high mineral loyalty rates as proposed in the 2015 national budget, could affect profitability of some mines resulting in curtailing of their operations.
The brief which is part of a series of short economic updates produced twice a year by the World Bank has also called for an early resolution of the issue of the Value Addition Tax (VAT) refunds.
Speaking this morning during the official launch of the brief, World Bank Country Director Kundhavi Kadiresan observed that Zambia’s economy has seen mixed macroeconomic outcomes during 2014.
Dr. Kadiresan notes development such as growth slowing down to about 6 percent, while inflation edging up closer to 8 percent average against the targeted 6.5 percent ,underscore the need to secure macroeconomic stability through right policies.
She notes that the fact that financial inclusion has been identified as a key driver to economic growth, it is important that obstacles such as high cost of banking services are addressed.
The World Bank country Director says it is for this reason that her bank’s Fourth Zambia Economic Brief has suggested solutions that include service providers, regulators and policy makers jointly ensuring that a viable e-money ecosystem is developed.
And Bank of Zambia (BoZ) Governor Michael Gondwe, who graced the official launch of the brief, has reaffirmed the Zambian government’s commitment to ensuring that half of the Zambian adult population has access to financial services by 2015.
Dr. Gondwe, who has also commended the World Bank for launching the brief, says government to this effect is already assessing options for a successor financial sector strategy beyond the Financial Sector Development Plan (FSDP) which is now winding up.
He states that while government is creating a supportive environment to make financial inclusion possible, stakeholders are also urged to join in addressing the financial inclusion agenda.