Zambian President Edgar Lungu said on Thursday the state must own a majority stake in selected mines to benefit the country beyond taxes, while also allowing private investors to operate in the sector.
Zambia had been wrestling with growing public debt before the novel coronavirus outbreak forced lockdowns around the world and hit demand for raw materials.
“Owning a stake in some strategic mines gives the state the leverage required to utilise the defined mineral resources to benefit the nation,” Lungu said at an event to launch an economic recovery plan.
“I must mention that this is not nationalisation of the mines, on the contrary, it is the state acquiring majority stakes in selected mines while allowing private investors to also participate in the sector,” Lungu said.
The southern African country became Africa’s first pandemic-era sovereign default last month after it failed to pay a coupon on one of its dollar-denominated bonds.
Although Zambia is a major copper producer, its debt-to-gross domestic product is nearly 140%.
The International Monetary Fund said last week it would assess a possible support programme in coming weeks after Zambia formally requested its support.
