By EditorZambia
PRESIDENT Hakainde Hichilema has delivered one of the clearest verdicts yet on the country’s economic direction: the pain of reform is beginning to yield results.
In a statement issued by State House on January 29, 2026, the President credited ordinary Zambians for the resilience that has underpinned a fragile but unmistakable recovery, while forcefully dismissing claims that Zambia’s biggest companies—especially in mining—do not pay taxes. 
The numbers tell a story that was unthinkable just a few years ago. Inflation fell into single digits for the first time since August 2023, dropping to 9.4 percent in January 2026 from 11.2 percent the previous month. The Kwacha has stabilised, easing imported inflation, and Zambia has successfully completed the International Monetary Fund’s Extended Credit Facility Programme—an achievement that signals restored credibility after the 2021 sovereign debt default.
For President Hichilema, these gains did not come from slogans or shortcuts. They are the outcome of fiscal discipline and structural reforms that demanded patience from citizens already stretched by years of economic distress. “This progress belongs to the Zambian people,” the statement emphasised, acknowledging the sacrifices households and businesses have made as government tightened spending, restructured debt, and cleaned up public finances.
The contrast with 2021 is stark. Then, Zambia was locked out of international markets, drowning in debt that stood at 112 percent of GDP and struggling to pay for basic services. Four years later, public debt has declined to a projected 78 percent of GDP in 2025. Lower debt has translated into reduced interest payments, freeing resources for clinics, schools and roads—investments that had been crowded out by debt servicing for over a decade.
The IMF has validated this turnaround, projecting real GDP growth of 5.8 percent in 2026. But the President was careful not to declare victory too early. Economic recovery, he said, remains a work in progress, with pressing challenges in job creation, energy reliability, and opportunities for young people. The message was sober: reforms have stabilised the economy; now the task is to make growth inclusive and durable.
It is against this backdrop that President Hichilema addressed a persistent and politically charged allegation—that mining companies operating in Zambia do not pay taxes. Speaking at the 2026 Presidential Annual Greetings for the Diplomatic Corps in Lusaka, he dismissed the claim as false and misleading. “There is a fallacy being peddled that mining companies do not pay taxes,” the President said.
“First Quantum Minerals is the largest single taxpayer in this country.”This was not a casual remark. Mining remains Zambia’s economic backbone, and taxes collected from the sector are a critical pillar of the national budget. According to the President, revenues from mining fund flagship programmes such as free education, the Cash for Work initiative, and support to agriculture through schemes like FISP. In other words, classrooms, clinics, and food security are directly linked to what the sector contributes to the Treasury.
Clarifying how taxes are paid is essential to cutting through the noise. Mining companies in Zambia operate under a statutory fiscal regime anchored in the Income Tax Act and the Mines and Minerals Development Act. Corporate income tax stands at 30 percent, while mineral royalty tax—typically around six percent for copper—ensures the nation earns revenue from production regardless of profitability. These royalties are paid upfront and flow straight to government.
Large-scale miners also pay Pay As You Earn for employees, withholding taxes on dividends, interest and consultancy services, customs duties where applicable, and various fees and levies. First Quantum Minerals, which operates Kansanshi and Sentinel mines and the Kansanshi smelter, reports hundreds of millions of dollars annually in royalties, income taxes and other statutory payments, making it the country’s single largest taxpayer.
It is true that mining companies benefit from incentives—such as duty-free importation of capital equipment, capital allowances on investments, and extended loss carry-forwards—provisions designed to support capital-intensive projects that require billions of dollars upfront. These incentives are not tax holidays; they are policy tools used globally to attract long-term investment. They do not cancel tax obligations but structure how and when taxes are paid.
President Hichilema’s intervention matters because misinformation corrodes trust. When citizens are told that “nobody pays,” faith in reform evaporates. By putting facts on the table, the Head of State linked revenue collection directly to tangible benefits Zambians can see: free education, expanded CDF allocations, university bursaries and social protection programmes.
The President also used the diplomatic gathering to call for deeper trade and investment partnerships, highlighting opportunities in agriculture, energy, and manufacturing. With macroeconomic stability returning, Zambia is repositioning itself not as a distressed debtor but as a credible partner open for business.
The message from State House was firm and unapologetic. Zambia’s recovery is real, earned through discipline and sacrifice. Taxes are being paid, revenues are being channelled to national priorities, and the reform agenda—while unfinished—is moving the country away from crisis toward stability. Above all, President Hichilema placed the credit where he believes it belongs: with the Zambian people who endured the storm and are now beginning to see the horizon clear.
