Govt vows to go tough on suppliers who breach newly signed Local Content Statutory Instrument

Mines and Minerals Development Minister, Paul Kabuswe, has cautioned local suppliers and contractors not to embarrass the government by failing to meet standards under the newly signed Local Content Statutory Instrument (SI), which reserves 40 percent of mining business for Zambians.

Signed last week, the SI makes it mandatory for mining companies to contract local suppliers, employ Zambians, and invest in domestic enterprise development across the mining value chain.

The regulation aims to close the gap between foreign capital and local economic participation by compelling companies to move away from import-heavy procurement models that have long excluded Zambian suppliers from major mining contracts.

The Local Content SI also includes provisions to enhance transparency, monitor compliance, and penalise companies that sideline local businesses without valid reasons.

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Speaking during the closing ceremony of the 2025 Zambia Mining and Investment Insaka on Friday, Mr Kabuswe stressed that the new law would be implemented strictly.

“The local content will be implemented to the letter. Suppliers should do their part and take time to read the document,” he said.

He urged leaders of supplier and contractor associations to ensure compliance among their members, warning that poor performance could undermine government efforts to empower local businesses.

“They should not embarrass the government by failing to deliver quality services,” he added.

Kabuswe also announced plans to tour the Copperbelt and other provinces to engage local businesses on the new regulations.

Commenting on the SI, Musamu Resources Ltd Founder and Executive Chairman, Sixtus Mulenga, said the regulation provided a framework for meaningful growth in the mining sector.

“This SI creates synergy between foreign and local players, putting a solid framework for growth,” Mulenga said.

He added that the law would encourage joint ventures, leading to knowledge transfer and industrialisation.

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