ZAM says local content regulations should serve more as blueprint for building industrial capacity

The Zambia Association of Manufacturers (ZAM) has advocated that the newly approved Local Content Regulations go beyond procurement requirements to serve as a blueprint for building industrial capacity and strengthening domestic supply chains.

In a statement issued in Lusaka on Friday, ZAM President, Ashu Sagar, emphasized the importance of ensuring that the law empowers communities in mining regions.

Sagar said the mandatory publication of procurement plans and supplier development support would enhance transparency and accountability in the mining sector.

“While penalties for non-compliance and full monitoring access for the Ministry of Mines will ensure enforcement,” he said.

He welcomed the approval of the regulations under the Geological and Minerals Development Act of 2025, describing it as a landmark achievement in Zambia’s economic transformation agenda.

Sagar said the regulations, signed into law on October 14, 2025 by President Hakainde Hichilema, are expected to reshape the mining sector by compelling companies to source more goods and services from Zambian-owned suppliers.

“The move will unlock long-overdue opportunities for local businesses, stimulate domestic investment, and create thousands of jobs across the country,” he said.

He explained that the legislation set clear targets for local sourcing, starting at 20 percent by 2026 and increasing to 40 percent by 2030, while reserving non-core services such as catering, transport, uniforms, and security exclusively for Zambian firms.

Sagar said the policy reflected ZAM’s core values, particularly through its Proudly Zambian Campaign, which promotes the production and consumption of locally made goods.

“Successful implementation will depend on strong collaboration between government, mining companies, and industry stakeholders to support supplier development, improve access to financing, and raise technical standards,” he added.

Sagar stressed that the time had come for Zambia to stop exporting raw potential and start building value locally, noting that the regulations mark “the beginning of a new era where Zambia’s resources fuel Zambian prosperity.”

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