Zambia’s Mineral Tax Reforms

New ICTD paper: The recent rise in commodity prices is one feature that has influenced reforms in mineral
industries around the world. While the general determinants are becoming better understood, each country may offer new insights into this problem. This paper focuses on Zambia‟s experience to understand what determined the tax reforms there. In addition, it explores the successes and failures of the mechanisms used to ensure a stable investment environment in Zambia. The paper finds that contract clauses between mining companies and the Zambian government provided some stability, even if no arbitration has so far occurred. In addition, certain tax structures imposed so far have not provided any protection. This paper suggests a better enabling environment, including greater diversification and government administrative capacity, may make these strategies more successful in the future.