Zambia Losing Billions to Unregulated Mining and Illicit Financial Flows — Mwachikoka Warns

Governance activist Chooma Mwachikoka has sounded the alarm over Zambia’s growing revenue losses caused by unregulated small-scale mining and illicit financial flows facilitated by shell companies.

Responding to the 2024 Financial Intelligence Centre (FIC) Report, Mr. Mwachikoka emphasized that illegal mining activities are rampant across all ten provinces. He noted that many small-scale miners are exporting minerals without proper documentation and without contributing any revenue to the national treasury.

He highlighted major weaknesses in Zambia’s mineral regulation and financial monitoring systems. Unless these loopholes are urgently addressed, he warned, the country will continue to lose billions in mineral wealth.

Mr. Mwachikoka also raised concerns about poor oversight within the commercial banking sector, particularly with international money transfers. He revealed that many high-volume, suspicious transactions are still passing through local banks unchecked.

“The volume of illicit transactions is deeply concerning. Zambia cannot afford to lose such critical revenue, especially when there’s an urgent need to invest in healthcare, education, and infrastructure,” he said.

He called for swift and coordinated action from key government bodies, including the Zambia Revenue Authority (ZRA), the Ministry of Mines and Minerals Development, and the Bank of Zambia, to tighten controls on mineral trading and cross-border financial flows.

Specifically, Mr. Mwachikoka urged the Ministry of Mines and Minerals Development to formalize small-scale mining operations and bring them into the tax system. “Every stakeholder in the mining sector must pay their fair share,” he stressed.

He concluded by emphasizing the need for stronger oversight of cross-border financial transactions and stricter enforcement mechanisms to ensure Zambia fully benefits from its vast mineral resources.