Zambia stands at a pivotal moment as it prepares to pass its first-ever Mining Local Content Bill. This landmark legislation will legally require and compel mining companies to prioritise local goods and services, employ Zambian workers, and invest in community development. As the country moves toward this new framework, the bill has the potential to boost industrialisation, generate employment, create a more sustainable economy. Given that mining contributes nearly 70% of Zambia’s export earnings (ZEITI, 2023), ensuring that more of these revenues benefit local industries is essential for long-term growth.
For decades, Zambia’s economy has relied heavily on exporting raw minerals like copper and cobalt which account for the majority of its foreign exchange earnings. However, limited local participation has resulted in minimal economic benefits for domestic industries. The World Bank reports that the country’s mining sector has remained largely foreign-dominated, with a supply chain that heavily depends on imports, reducing opportunities for local businesses.
According to a 2023 report by the Zambia Chamber of Mines, local entities primarily facilitated through the Zambia Consolidated Copper Mines Investments Holdings (ZCCM-IH), now hold significant stakes in several major mining operation. The government’s supportive policies, coupled with the upcoming local content bill, are expected to accelerate this trend by providing a stronger regulatory framework. However, some mining firms argue that local industries lack the capacity to meet the quality and quantity demands of large mining operations. Local companies also cite weak regulatory oversight of past local content policies. To fully realize the potential of these policies, the government must enforce strict compliance whilst providing incentives that empower local businesses to expand their capabilities and participate effectively in the mineral supply chain.
Moreover, Zambia can draw valuable lessons from other African nations. Botswana, for instance, has implemented policies that prioritise local empowerment and economic diversification, particularly in sectors like mining and tourism. Similarly, South Africa mandates its Department of Trade and Industry to designate specific industries where tenders prescribe that only locally manufactured products with a prescribed minimum threshold for local production and content are considered. These measures have not only spurred socioeconomic growth but also increased investment in local communities.
Undoubtedly, local procurement is a powerful tool for wealth distribution. In 2023 alone, large-scale mining companies in Zambia spent an estimated USD 2.5 billion on procurement, covering everything from mining equipment to materials and services. To maximise this opportunity, supplier development programs must align with these demand areas. For example, the Zambia Association of Manufacturers (ZAM) is actively connecting local producers of personal protective equipment (PPE) with mining firms. Select mining companies have also taken independent initiatives to support and develop local suppliers, fostering competitiveness among businesses that manufacture safety gear such as overalls, vests, jackets, and boots.
Beyond procurement, there are valuable opportunities for local entrepreneurs. Zambia’s artisanal mining sector, comprising an estimated 80,000 to 100,000 miners, makes a significant contribution to the economy. However, many of these miners face challenges due to limited access to modern tools and technology. Enhancing their productivity and product quality is possible through the provision of improved hand tools, geological dyes for surveys, and moulds for metal smelting.
Recognising this potential, the Zambia Association of Manufacturers (ZAM) is collaborating with Action Aid Zambia, Action Aid Netherlands, and the Small Scale Miners Association of Zambia (SSMAZ) on a project aimed at improving working conditions, expanding market access, enhancing livelihoods, and strengthening the voice of artisanal and small-scale miners in Zambia. These efforts are part of a broader strategy to localise the mining sector and promote inclusive development.
Aligning Zambia’s goal of increasing mining production to 3 million metric tons with greater local participation is both a moral obligation and a strategic necessity. If increased output is met with a commensurate rise in local content, the spill-over benefits to the broader economy and micro-economies in mining communities will be substantial. By learning from successful global models and adapting them to Zambia’s unique context, the nation can unlock inclusive growth, build economic resilience, and ensure that mining’s benefits extend far beyond extraction—paving the way for sustainable development that truly uplifts local communities.
The Author is Assistant Policy Analyst at the Zambia Association of Manufacturers
