Zambia Association of Manufacturers call for greater local participation, fair cost structures in mining industry

The Zambia Association of Manufacturers (ZAM) has called for deliberate measures to bridge gaps between local industrial programmes and global standards to ensure Zambian manufacturers and contractors meaningfully participate in the mining value chain.

Speaking during the Chief Executive Officer Round table discussions at the Zambia Mining and Investment Insaka (ZAMII 2025) held at the Mulungushi International Conference Centre in Lusaka on Monday, ZAM President, Ashu Sagar, said the current structure of the sector left limited room for local players, particularly due to high operational costs and foreign dominance in production and procurement.

“There are still many gaps in the industry, especially when it comes to aligning our programmes with global standards,” he said.

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Sagar stated that: “We need to identify opportunities that build local capacity and enable Zambian companies to participate in high-value areas of the mining value chain.”

He noted that while some progress had been made in promoting local content, much of the production and supply chain remained controlled from outside the country.

“Why should local companies be expected to shoulder the same high costs as foreign mining houses, including insurance and other overheads? This imbalance raises questions about fairness and long-term viability,” Sagar said.

He further stressed the need for investment in science, research, and education to strengthen the sustainability of Zambia’s natural resources.

“The broader discussion must focus on securing our natural resources for future generations. We have the knowledge and workforce, but we need trust and systems that work efficiently for local industry,” Sagar added.

He expressed concern that around 70 percent of mining production remained under foreign control, limiting Zambia’s potential to retain value locally.

“There’s still a lot of work to be done on asset ownership, local empowerment, and the creation of a more inclusive and sustainable mining sector,” Sagar said.

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