Kagem delivers ZMW 38 million (USD 1.5 million) dividend to the IDC
Kagem Mining Limited (Kagem) has handed over ZMW 38 million (USD 1.5 million) to the Industrial Development Corporation (IDC).
The funds represent dividends from 2023 to the government’s investment arm, which owns 25% of the shares in what is believed to be the world’s largest producing emerald mine, and underscore Kagem’s ongoing commitment to contribute to Zambia’s economic development.
The handover highlights Kagem’s continued dedication to striving towards responsible mining practices and transparent financial management and reinforces the company’s commitment to adhering to the ‘G-Factor for Natural Resources’ model championed by its parent company Gemfields.
IDC chief executive officer, Mr Cornwell Muleya, commended Kagem’s consistency in delivering value in the gemstone sector saying, “The record of Kagem has been impressive and it has been consistent.
You have been one of those key investments which has always produced a return, not only for the IDC but also for the people of Zambia.
You have a been a pioneer in the mining sector here in Zambia, not only in terms of your contribution in relation to the ‘G-Factor for Natural Resources’ but also in developing the gemstones industry in Zambia.
You have built your position as number one in this field, making Zambia proud and by extension making the IDC proud because we are your partner and the shareholder on behalf of the Zambian people.”
Kagem has been at the forefront of adopting the ‘G-Factor for Natural Resources’, a pioneering measure that reveals the percentage of a mining company’s revenue paid to the Zambian government in primary and direct taxes and dividends, clearly showing how the country has benefited from its natural resources.
For 2023, a total of ZMW 732 million (USD 28.3 million) was received by the Zambian government from Kagem’s revenue, which amounts to a ‘G-Factor for Natural Resources’ figure of 31%.
Dr Sixtus Mulenga, Chairman of Kagem Mining Limited, highlighted the significance of this initiative, “The implementation of the ‘G-Factor for Natural Resources’ has made the investment environment in Zambia more conducive and attractive to both local and international investors.
By openly sharing the amount of wealth generated from our natural resources, we create an environment of trust and accountability, essential for long-term investment and sustainable growth.”
Dr Mulenga commended the Zambian government’s ongoing efforts to foster an investor-friendly climate through the implementation of transparent and accountable policies.
“We applaud the Ministry of Mines and Minerals Development, Ministry of Finance and National Planning and other relevant bodies for their steadfast commitment to creating a conducive environment for businesses to thrive. As these policies continue to evolve, the future of investment in Zambia looks bright and promising.”
Kagem’s Chair also implored other investors in the country to embrace the ‘G-Factor for Natural Resources’, enhancing the transparency and accountability of their operations.
“Adopting the ‘G-Factor for Natural Resources’ is not just a good business practice; it is a commitment to the people of Zambia, ensuring that our natural wealth translates into tangible improvements in their lives.”
The ZMW 38 million (USD 1.5 million) contribution from Kagem will support the IDC and the Government of Zambia in funding projects critical to national development.
These funds will likely be allocated to sectors such as infrastructure, education, and healthcare, driving progress and improving the quality of life for Zambians.
“At Kagem we believe that responsible management of our natural resources is key to sustainable development,” Dr Mulenga emphasised.
“This contribution is testament to our unwavering commitment to good natural resources stewardship and our dedication to contributing to Zambia’s economic and social fabric.”
Kagem Mining Limited remains committed to striving towards transparency, legitimacy and integrity, coupled with responsible practices, and looks forward to continuing its contributions to Zambia’s prosperity.
