A LAW to compel all exporters to repatriate all export earnings back to Zambia as a way of completing an export transaction will help curb capital flight, says Private Sector Development Association (PSDA) chairperson Yusuf Dodia.
Mr Dodia said in an interview that it was high time for Government to follow international best practices on how to curb capital flight by regulating export earnings.
“Zambia is one of the few countries which have no law to compel exporters to bring back export earnings into the country.
“We tried to put up SI number 55 some few years ago but I think Government was under pressure to revoke it because of the huge international pressure to allow capital to continue to leave the country,” he said.
He said Government should put its foot down and demand that capital earnings continues to remain in the economy like many other countries with regulations.
“Many other countries in the world have a regulation and a law that when you export any product, export earnings must come into the country in order to complete an export transaction, so for Zambia this is something that we need to turn around.
“These are some things that we must try and sort out and it is time for the nation to put our foot down and demand that Zambia’s capital continues to remain in the economy,” he said.
Mr Dodia said Zambia’s capital flight started in the colonial error where the country was viewed as a source of raw materials with returning interest. He explained that such behaviour had not changed because Zambia was still seen as a source of raw materials, hence losing colossal sums of money through capital flight.
“Zambia at the time was seen as a place one can get resources and this has not changed. This has continued into post-independence Zambia where the mines were owned by Government and the Anglo American Corporation,” he said.