Melo News | Monday, July 22, 2024 | Lusaka
The Extractive Industries Multi-Stakeholder and Risk Assessment Workshop was officially launched today in Lusaka by the Office of the Auditor General in partnership with the African Organisation of Supreme Audit Institutions in English-speaking countries (AFROSAI-E). The primary objective of the workshop is to gather input from stakeholders regarding their needs, expectations, and suggestions, while also identifying potential audit risks associated with the extractive industries.
Dr. Ron Mwambwa, the Auditor General, inaugurated the workshop and drew attention to the significant role that mineral extraction plays in the economies of 81 countries worldwide, constituting a quarter of the global Gross Domestic Product (GDP). In Zambia specifically, the mining sector is a key driver of the economy, contributing approximately 12% to the GDP and generating a substantial portion of foreign earnings, foreign direct investments, as well as government revenue through mining royalties and taxes.
Despite the economic benefits derived from the extractive industries, Dr. Mwambwa acknowledged the potential negative impacts associated with the sector, including corruption, exploitation, environmental degradation, and human rights violations. He highlighted the concept of the “resource curse,” where the wealth generated from natural resources tends to benefit only a select few individuals while causing harm to the environment and society as a whole.
Dr. Hapenga Kabeta, the Permanent Secretary for the Ministry of Mines and Minerals Development, emphasized the importance of sustainable mining practices that prioritize environmental conservation and consider the well-being of future generations. Additionally, Mr. Edmond Shoko, the AFROSAI-E Manager for Regularity Audits, noted that the workshop received support from the African Development Bank and aims to enhance the capacity of the Supreme Audit Institution to effectively audit the extractive industries in Zambia.
Mr. Shoko underscored the necessity of returning to fundamental principles and ensuring that the benefits derived from mineral resources are distributed equitably among all members of society, rather than being concentrated in the hands of a privileged few. The workshop serves as a platform for fostering dialogue, collaboration, and strategic planning to address the challenges and opportunities within the extractive industries sector.
