Honorable Ministers, Distinguished Guests, Ladies and Gentlemen,
It is a great honor to address you today at the Zambia International Anti-Corruption Conference. And I regret that can’t be with you this year in Kitwe. I had to remain in Lusaka to receive a high-level visit from my Government.
This year’s theme, “Collaborative Partnerships for Combatting Corruption in Extractive Industries,” is both timely and crucial as Zambia’s mining sector is picking up pace. Sweden like Zambia is a country that has built its economy on natural resources, and we are one of Europe’s leading mining countries. Did you know that more than 90 % of Europe’s entire iron ore production comes from Sweden?
For a number of years, Sweden has increasingly been focusing on sustainable and responsible mining here in Zambia. Sweden is a world leader in innovative and sustainable solutions in the mining sector. And we have world leading businesses supplying equipment and solutions that benefit the Zambian mining sector.
Ladies and gentlemen,
Sweden and Zambia share a commitment to private sector development, trade, and economic growth. Our countries both see that a vibrant private sector is the backbone of sustainable development. We both strive to create environments where businesses can thrive, innovate, and contribute to our economies. Zambia’s ambition for private sector driven economic growth is commendable and we support the ambitions of the Government to bring in more investment and increase trade, not least regionally.
Corruption is a threat to these shared goals. It is a global menace to investment and a significant risk that global businesses increasingly need to take into consideration when doing business. Corruption is however not only a risk for investments, as well as a hindrance to development. It is a major contributing cause of poverty and an impediment to the deepening of democracy and enjoyment of human rights.
Ladies and gentlemen,
Corruption undermines the business environment by creating uncertainty and increasing the cost of doing business. It distorts market mechanisms, leading to inefficiencies and unfair competition. For accountable and transparent foreign investors, the presence of corruption can be a deterring factor as it erodes trust and confidence in a market.
Studies show a direct link between the level of corruption in a country and measurements of the competitiveness of its business environment. The negative economic impact of corruption is estimated to equal nine times the value of global Development Assistance (ODA). Nine times all ODA. There is something to reflect on.
In essence, corruption makes it difficult for businesses to plan and invest long-term.
Another critical issue for foreign investment is the existence of red tape and burdensome administrative procedures. These barriers not only slow down business operations but also provide opportunities for corrupt practices to flourish.
Therefore, the Zambian government’s emphasis on ensuring that administrative processes are streamlined and that unnecessary regulations are removed, are essential steps towards creating a more business-friendly environment. This includes for instance the introduction of the Zambia Integrated Land Administration System (ZILAS) in May 2023. This has resulted in significant progress in improving land management services across Zambia. ZILAS has been designed to streamline land-related services. It allows Zambians and foreign nationals with property in Zambia to apply for land services and make payments online, reducing the need for in-person visits. This system minimizes human interaction, cuts down on corruption risks, and lowers the overall cost of land transactions in Zambia.
Another example is the work of the Patents and Companies Registration Agency (PACRA) towards online public access to information on beneficial owners of companies. This will provide important data that can be used to stem corruption.
Let me take this opportunity to commend the Government for having regulations that require that all registered companies declare their beneficial owners. And at the same time express my hope that the government will ensure that these regulations are adhered to without exception.
One important reform is of course also the Access to Information Act, enabling citizens to request and obtain information about government activities. Not only is this good from a societal point of view, but also economically, as transparency and accountability level the playing field for all, including economic actors.
The full operationalization of the ATI as well as the review of the Anti-Corruption Act are among the ongoing reforms that will also be useful in addressing corruption within the business environment.
We support continued efforts in easing administrative burdens, not least for businesses. Sweden will continue to work hand in hand with Zambia as a partner to promote an ease-of-doing business agenda.
Ladies and gentlemen,
Sweden has for 60 years been supporting Zambia and made significant contributions over the years in both Zambia and the region to promote good governance and combat corruption. We work closely with Zambian partners, including civil society, and international organizations to support anti-corruption efforts. Because it is only when working together that we can create conditions that attract and retain foreign and domestic investments.
Sweden’s work includes support to the Office of the Auditor General, to Transparency International Zambia, to the media through BBC Media Action, and also to various civil society organisations working on transparency and accountability through Action Aid Zambia. In total, this support amounts to more than 125 MZMW annually.
We also have a keen interest on interventions that seek to promote the independence of the judiciary, strengthening public administration, land administration, public procurement and natural resource governance. All of which are areas that are vulnerable to corruption and ultimately lead to an unfavourable business environment when corruption occurs.
Ladies and gentlemen,
The extractive industries hold great potential for driving sustainable development if managed responsibly. Sweden advocates for sustainable and responsible mining practices that prioritize environmental sustainability, social responsibility, and economic benefits for local communities. I know how important this is to the Zambian people and communities around mining areas. Again, Sweden itself is a major mining economy and Swedish communities and Swedish citizens – just like Zambians – want to benefit economically from our resources.
The wonderful thing is that through consistent, transparent, and enforced regulations, Sweden has demonstrated for decades that you can have an attractive investment environment while also doing right by your citizens.
And so, Sweden advocates for mining practices and regulations that benefit local communities while providing an attractive investment climate here in Zambia.
By promoting transparency and accountability in the extractive sector, we can ensure that the wealth generated from natural resources contributes to the broader development goals of Zambia.
Sweden is committed to being a prioritized partner for the green and digital transition globally. This involves promoting sustainable practices, reducing environmental impact, and leveraging digital technologies to drive innovation and efficiency including in extractive industries. By ensuring that sustainability in all its forms – environmental, social and governance – is at the heart of the Zambian mining industry, we can ensure more economic growth that does not come at the expense of the environment and communities affected.
Increasing trade and the presence of Swedish businesses in international markets is a key objective for Sweden, and we wish to see even more investments in Zambia by Swedish businesses.
Therefore, all efforts that Zambia is making to fight corruption and burdensome administrative practices, will effectively aide Swedish businesses to expand their footprint in Zambia and thereby contribute to economic development and ensuring that their investment is bringing economic and social development to the country.
We see the potential in Zambia. And we are working hard to attract even more Swedish investments into this country, both in the mining sector but also elsewhere.
Let me conclude by appreciating the excellent work TI-Z is doing. Your dedicated work on anti-corruption plays an important role in raising awareness and proposing solutions to issues that are crucial for Zambia’s development.
Thank you so much for your attention and I wish you all a very fruitful conference!
