Zambia cuts its losses
Zambia has introduced a number of controls on money flowing across its borders in an attempt to reduce tax losses. Currently, the Zambian government estimates that it loses around US$ 2 billion in taxes every year as a result of tax avoidance and transfer pricing by foreign firms. The government has taken tentative steps to reduce these losses by implementing stricter monitoring of financial flows and requiring greater justification by firms for their overseas financial transfers. The government has a difficult balancing act to perform as it continues to seek foreign direct investment while pushing for a greater share of profits to be reinvested within its borders in acknowledgement of rising nationalist sentiment.