Social & Economic Expenditures

These consist of all contributions made by extractive companies to promote local development and to finance social projects in line with the EITI requirements 6.1. The standard encourages MSG to apply a high standard of transparency to social payments and transfers, the parties involved in the transactions and the materiality of these payments and transfers to other benefit streams, including the recognition that these payments may be reported even though it is not possible to reconcile them. The contributions can be made in cash or in-kind. This category includes inter alia: health, school, road, market gardening infrastructure, projects related to the promotion of agriculture and the grants provided to the population.

It is noteworthy that there are no legal or contractual provisions for mandatory social payments in Zambia. However, the voluntary social payments were included in the 2021 EITI scope through unilateral disclosure of mining companies.