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Association of Mine Suppliers and Contractors President, Coster Mwaba, says the enactment of Statutory Instrument (SI) No. 68 of 2025 will help retain economic value in Zambia by boosting local procurement, job creation and domestic manufacturing.
“When you procure locally, you are creating jobs, generating taxes, and building industries here at home. But when you import everything, you are exporting opportunities. That 20 percent local content translates into real income, employment, and business growth for Zambians,” Mwaba said.
He described the statutory instrument as a long-overdue milestone in the country’s local content agenda, noting that it marked the culmination of nearly 15 years of sustained advocacy by local suppliers and contractors.
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“We must commend the government for having the courage to sign onto local content. This is something we have been advocating for over the past 14 to 15 years. Our engagement on this matter dates back to 2010, and today it has finally become a reality,” he said.
Mwaba told Zambia Monitor in an interview that SI No.68 compels mining companies to prioritise Zambian-owned suppliers, a move he said would significantly benefit local contractors who had historically struggled to access procurement opportunities.
He said the Association of Mine Suppliers and Contractors was engaging mining houses to ensure they realign their procurement systems in line with the new law, which sets an initial local content threshold of 20 percent, with gradual increases over the next decade.
“We don’t have much time. Years are moving very fast. Mining houses must realign their procurement practices to comply with SI No. 68 of 2025, especially for goods and non-core services that are clearly meant for citizen-owned companies,” Mwaba said.
He noted that early indications showed a positive response from the industry.
“Almost all mining houses are aligning themselves with the SI. Even mining firms with foreign ownership have engaged government and are holding discussions on how to adjust their procurement systems accordingly,” he said.
However, Mwaba urged local suppliers and contractors to rise to the occasion by delivering quality goods and services at competitive prices.
“Now that opportunities have been extended to us, it is also time for local suppliers and contractors to raise the bar. We must supply quality products, price competitively, and honour delivery timelines. We cannot quote for jobs we cannot execute,” he said.
On challenges, Mwaba acknowledged that lack of trust and perception issues had previously limited access for local suppliers.
“One of the major barriers we faced was perception. There was a belief that local suppliers could not meet quality or pricing standards. SI No. 68 of 2025 helps address this by making local participation mandatory, starting at 20 percent,” he said.
Addressing concerns over delayed payments, Mwaba said while SI No. 68 of 2025 does not legislate payment timelines, the issue remains critical for supplier sustainability.
“Payment terms are contractual and vary from supplier to supplier, which makes it difficult to legislate. However, this law raises expectations, and we are appealing to mining houses to also improve payment practices,” he said.
He warned that delayed payments disrupt supply chains and negatively affect production.
“If you delay paying a supplier, you disrupt the next stage of production. That supplier still has employees, overheads and obligations to meet. Delayed payments affect the entire value chain,” Mwaba said.
He expressed hope that the same commitment shown in embracing local content would extend to building fair, reliable and sustainable business relationships between mining companies and Zambian suppliers.
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