PRESIDENT Hakainde Hichilema has given the green light to a new regulation that will compel mining companies to channel more of their spending into the local economy by prioritising Zambian businesses and workers.
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The newly signed local content Statutory Instrument (SI) introduces legally binding requirements for mining firms to contract local suppliers, employ Zambian nationals and invest in the development of domestic enterprises across the mining supply chain.
Speaking when he officially opened the Mining and Investment Insaka in Lusaka today, President Hichilema said the law is part of a broader agenda to ensure Zambians benefit more directly from the country’s vast mineral wealth.
The regulation aims to close the gap between foreign capital and local economic participation by forging companies to shift away from import-heavy procurement models that have long excluded Zambian suppliers from major mining contracts.
He emphasised that this shift should not be viewed as hostile to investors, but as a move toward sustainable, mutually beneficial partnerships.
“Genuine investors will see this for what it is, a step toward stronger collaboration and long-term stability. Local empowerment is good economics,” he said.
The Local Content SI also includes provisions to improve transparency, monitor compliance and penalise companies that sideline local businesses without cause.
In turn, local suppliers are expected to maintain high standards and build the capacity needed to meet industry demands.
The President also cautioned against abuse of the system, saying that government will not defend those who win contracts but fail to deliver.
“You can’t expect to live lavishly by signing contracts and not deliver value. That undermines everyone, including the mining companies we want to grow with,” he warned.
In a bid to support this transformation, the Head of State called for an investment in supplier training programmes and encouraged partnerships between local and international firms to close capacity gaps.
Speaking at the same event, Minister of Mines and Minerals Development Paul Kabuswe pointed to Zambia’s anticipated six percent economic growth as a reflection of investor confidence and sound economic management.
“We have moved from decline to momentum. Operations that had stalled are now contributing again and that signals a sector getting back on its feet,” added Kabuswe.
By Sharon Zulu
Kalemba October 9, 2025
