Zambia develops measures to ease impact of global economic crunch

Special Report:Global Financial Crisis

LUSAKA, Feb. 8 (Xinhua) -- Zambian President Rupiah
Banda said the government is developing measures to mitigate the adverse impact
of the global credit crunch on the mining industry, Zambia News and Information
Services (ZANIS) reported on Sunday.

The president said the measures are intended to
address concerns raised by the mining companies in order to reduce job loses and
develop a mechanism to salvage mining operations.

He said although the economic meltdown has adversely
affected the economy, particularly the mining sector, the government will remain
committed to getting the country onto a firm economic base.

Banda said he is happy with the confidence from some
investors who are willing to invest in the mining sector in Zambia despite the
prevailing global economic problems.

He observed that despite the fall in metal prices,
investors have not been deferred their investment plans in the country, ZANIS
said.

He said the long term view for the sector is that the
world's demand for the metals, mainly driven by India and China, is likely to
rebound and bring back mining operations to normal.

The President said it is government's policy to
ensure that the business environment remains attractive for further investment
in the country.

He said in the medium and long terms, Zambia will
continue to attract investors in the mining sector due to its conducive
investment atmosphere.

He noted that Zambia still offers some of the best
incentives in the mining industry such as exemption from custom and exercise
duty on all mining equipment and machinery imported for mining purposes, ZANIS
said.

Banda further expressed confidence that the congress
will provide a framework for business people from southern Africa and other
regions to discuss and share ideas on the future of the mining industry on the
continent in the wake of falling metal prices on the world market.

He urged Southern African states and the continent at
large to consider coming up with a common approach to issues of taxation and
environment which are key to sustainable development of the mining sector,
according to ZANIS.

He said the southern African region has much to gain
from the development of their mining economies through employment, taxation and
other benefits, adding that the mining sector will only be sustained through
enhanced cooperation.