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Elias Mubanga, Minister of Small and Medium Enterprise Development, has reaffirmed Government’s commitment to ensuring that Zambian entrepreneurs fully benefit from the country’s rapidly expanding mining and investment landscape.
Speaking in an exclusive interview with Zambia Monitor in Lusaka on Monday, Mubanga highlighted that last year President Hakainde Hichilema approved the signing of a Statutory Instrument (SI) No. 68 of 2025 on Local Content, empowering the Ministry of Mines and the Ministry of Small and Medium Enterprise Development to enhance Zambian participation in major economic activities.
“Local content means we want our local entrepreneurs—our SMEs within the country—to be able to participate in the growth of our economy first and foremost,” the minister said.
“We know we have strong sectors such as mining, agriculture, tourism and others where our SMEs must be operating,” he added.
Mubanga who is also Acting Minister of Mines and Mineral Development revealed that a survey conducted through the Ministry of Mines showed a major imbalance in procurement distribution within the mining sector.
“When we looked at the survey, we found that mining firms spent about US$7 billion on procurement. But only 2.5 percent of that—just about US$50 million—went to our local entrepreneurs,” he explained.
“Out of US$7 billion, US$50 million is a drop in the ocean.”
This, he said, is why the Local Content SI was signed—to ensure a fairer share for Zambians as mining investments continue to rise, with multinational firms such as Vedanta already injecting significant capital.
The minister emphasized that the new SI mandated all mines to allocate at least 20 percent of their procurement to Zambian-owned SMEs.
“If, for example, a mine spends US$100,000, then 20 percent of that must go to local people. The SI is very clear,” he stressed.
“This year it is 20 percent. Next year we go to 25 percent, and in the next three years we want to reach 30 percent to 40 percent.”
He further stated that compliance was compulsory.
“It is law. If mines do not give contracts to our local contractors and suppliers, penalties will be enforced.”
To ensure local suppliers meet the quality requirements of the mining sector, the Ministry is running a nationwide capacity-building programme.
“When SMEs are given contracts, they must look at quality, standard, and lead time. If it says 30 days, they must deliver within 30 days,” the minister noted.
“If they fail, they risk being kicked out.”
Responding to concerns raised by the Mines Suppliers and Contractors Association regarding delayed payments from mining companies, Mubanga said Government was acting on the matter.
“We are engaging the mines. When they give contracts to foreign contractors, they even pay down payments. So why should local entrepreneurs have to wait three or four months?” he asked.
“If the agreement says 30 days, then they must be paid in 30 days,” he noted.
Mubanga also announced that Government was working jointly with major mines, including at Kalumbila mine, to implement a Supplier Development Programme.
“The mines, the contractors and the government must all work together to build capacity within local suppliers so that their goods and services meet mining-sector standards,” he said.
“We have already started working with Kalumbila mine, and we will extend this to all mining areas.”
Minister Mubanga concluded by reaffirming that increased mining production and rising copper prices presented a major opportunity for Zambians—but only if local participation was strengthened.
“The mines are making money. Investment has increased. So our people must benefit. Local entrepreneurs must be part of that value chain,” he said.
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