Zambia’s new President Edgar Lungu on Monday retained Finance Minister Alexander Chikwanda, signalling his continuance of the policies of late President Michael Sata, whose death necessitated the election that has brought the former justice minister into power.

Lungu secured a narrow 48.3 percent victory in last week’s presidential poll, described by analysts as one of the tightest in Zambia’s history. He drew his support from Sata’s base and is expected to continue the populist policies of the late leader. However, those policies have been controversial, and in many instances pit the government against the private sector and foreign investors.

Edgar Lungu
Edgar Lungu

One of the hotspots of the public-vs-private sector battles are the past government’s increment of the mining royalty to 20 percent, which the mining companies said they could not afford and threatened to down tools. Lungu has, however, stuck to the new tax regime. In his inauguration speech, Lungu said his government will maintain the controversial tax despite fears that it could lead to mine closure and chase away investors. “The government’s desire to ensure companies pay the right taxes will continue,” said Lungu. The main opposition leader, Hakainde Hichilema, whom Lungu defeated by just 1.6 percent had promised to scrap the mining tax.

Lungu will rule Zambia for 18 months before the next general elections in mid-2016.

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