Critics have recently argued that Zambia is being left shortchanged by mining giant Barrick, as the country has failed to secure equitable benefits compared to its regional peers.
In 2024, Barrick generated US$1.063 billion in revenue from its Tanzanian operations, recording an EBITDA margin of 52% and paying US$95 million in income tax, equivalent to nine cents in every dollar earned. In stark contrast, Zambia’s mines produced US$855 million in revenue but only contributed US$1 million in income tax, a mere fraction of a cent in the dollar.
Observers question how Barrick could report an EBITDA of US$379 million in Zambia yet declare a gross profit of only US$36 million. They argue that weak policies, including tax concessions, have left Zambia with little to show. “Whilst in Tanzania they asked Barrick to contribute to infrastructure development, here in Zambia we were grovelling, even making royalties tax deductible. Even the US$2 million they spend annually on community relations is expensed,” explained a critic.
The disparity has sparked debate on whether Zambia is prioritising external approval over national interest. “Whilst Tanzanians are fighting for equitable mining and trying to mop up as much from internal resources, here in Zambia we are fighting to be the poster child of the IMF. We behave as if someone has promised us the trophy of being the most ‘reasonable’ nation on earth. We willingly take food out of our mouths to feed others but wonder why our people remain malnourished, sickly and stunted,” concluded the critic.