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The recently enacted local content legislation in Zambia’s mining sector is expected to unlock major economic opportunities for domestic businesses, says Tobias Musonda, Director of Planning and Information at the Ministry of Mines and Minerals Development.
Musonda explained that the law differentiates between core and non-core goods and services.
He said while core goods and services will have minimum thresholds for local participation, non-core services — including cleaning, printing, and other support services — will be fully reserved for Zambian companies.
“This legislation is designed to stimulate domestic production and increase Zambians’ participation across the mineral value chain,” Musonda said during the launch of the 2025 PwC Zambia Mining Review Report on Friday on December 5, 2025.
He noted that before the law’s introduction, only two percent of mining procurement benefited local businesses.
Musonda said under the new framework, mining companies were required to allocate at least 20 percent of opportunities to local firms within the first six months, with targets rising to 40 percent over four years.
Speaking at the same event, Zambia Chamber of Mines (ZCM) Chief Executive Officer, Sokwani Chilembo, stressed that local businesses should strive to become full-service providers rather than just vendors.
“The goal is to offer reliability, confidence, and support with every product, creating jobs and shifting people from trading to value addition,” he said.
Chilembo added that the local content programme mandated mining companies to invest 5.05 percent of their turnover in developing local suppliers, regardless of company size or location.
He said companies could identify promising local businesses, guarantee them contracts, provide business development support, and facilitate access to discounted financing.
He said smaller mining companies and non-ZCM members can outsource compliance and supplier development services, ensuring opportunities were widely accessible across the sector.
“This is about execution. Proper implementation will generate more jobs, drive economic growth and industrialisation, and could even enable some companies to become export leaders in regional mining markets like the DRC, Malawi, and eventually Angola,” Chilembo stated.
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