Export Proceeds Tracking: FQM pledges compliance, support

FIRST Quantum Minerals (FQM) has pledged to comply with requirements in the Export Proceeds Tracking Framework, as it will enable the Government track United States dollar flows and the impact they may have on the Kwacha.

FQM was of the view that exports being predominately in United States dollars provided the Bank of Zambia (BoZ) with the information to more effectively track these funds and the impact they may have on the kwacha, which was key for the economy.

This is according to the FQM Country Manager, Godwin Beene, in giving the firm’s position on the framework which came into effect on January 1, 2024.

The framework aims to ensure revenue from exports of goods and services, and the use of these funds, could be tracked through local Zambian bank accounts.

Reacting to this measure, Dr Beene pledged FQM’s support and compliance towards the initiative.

“The central bank’s approach will enable greater transparency on the level of proceeds received in relation to exports as well as allowing any mismatches to be investigated.

Dr Beene

“In addition, with exports being predominately in US dollars this also provides the central bank with the information to more effectively track these dollar flows and the impact this may have on the kwacha, which is key for the economy,” he said.

Dr Beene pointed out that FQM had for many years ensured export proceeds flowed through its Zambian bank accounts.

He also said FQM had been reporting on this to Government under Rule 18 (Proof of Exports) of the Zambia Revenue Authority’s VAT General Rules, which required exporters to provide documentary evidence of export proceeds having been deposited in a local bank.