Ministry of Mines sheds more light on Local Content Regulations, as Zambian firms to get 20% of procurement budgets

The Ministry of Mines and Minerals Development has introduced new regulations requiring mining companies to significantly increase procurement from local Zambian suppliers, in a move aimed at strengthening the country’s mining value chain and promoting inclusive economic growth.

The Local Content Statutory Instrument (SI), signed by Minister, Paul Kabuswe, under the Geological and Minerals Development Act of 2025, will take effect on January 1, 2026.

Under the regulations, mining firms must allocate at least 20 percent of their procurement budgets to local suppliers for core goods and services within six months of the SI’s commencement.

This threshold would progressively rise to 25 percent after one year, 35 percent within two years, and 40 percent within five years.

The SI also provided for exclusive reservation of certain goods and services for local companies and encourages the subdivision of large contracts into smaller lots to allow broader participation by Zambian businesses.

To ensure compliance, mining companies will be required to submit a Local Supplier Development Programme to the Ministry and update annual records on local participation.

Companies that failed to comply would face penalties as prescribed under the Act.

In a statement issued on Saturday, Ministry of Mines and Minerals Development Principal Public Relations Officer, Shamwinda Tembo, said the regulations reflected government’s commitment to empowering local businesses.

“The Local Content Regulations are a deliberate step to ensure that Zambian suppliers and service providers take an active and growing share in the mining value chain.

“By progressively increasing local procurement thresholds, the Ministry aims to foster enterprise growth, create more jobs, and retain greater economic value within the country,” Tembo said.

Tembo added that the Ministry would work closely with mining firms, supplier associations, and other stakeholders to ensure smooth implementation ahead of the January 2026 enforcement date, with the long-term goal of building a competitive and resilient mining supply industry that drives industrialization and national development.

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