Q FM Africa's Modern Radio
Deputy Premier of Western Australia Kim Hames
COMESA Secretary General Sindiso Ngwenya says addressing regional human and institution capacity challenges still remains the key to improving efficiency of the mineral sector.
Mr. Ngwenya says COMESA also believes that limitation of capacity with respect to contract negotiations and the management of mineral revenue is what accounts for the high levels of illicit financial flows from the sector.
He says this is mainly done through vices such as transfer pricing and failure to deploy revenues towards meaningful development projects.
Mr. Ngwenya adds that limited capacity of governments to audit mineral value chain to plug leakages has also contributed to the poor performance of the mineral sector.
He says this is why COMESA believes that capacitating national institutions of member states will improve efficiency and the developmental dividend from the mineral sector.
Mr. Ngwenya was speaking when the visiting Deputy Premier of Western Australia Kim Hames called on him at the COMESA Secretariat in Lusaka today.
And Dr. Hames disclosed that his visit to Zambia was meant to strengthen the relationship that Australia, Zambia and the entire COMESA region have.
Dr. Hames says Australia has both successes and failures which Zambia and the region can learn from.
He has cited Australia’s Mineral Royal tax that has remained at 9 percent for a long time as one such example Zambia and the region can emulate with the view of maintaining confidence in investors.
Dr. Hames states that for Australia, WHAT has mainly helped to maintain the confidence in investors and a strong economy is policy consistency.