Mines and Minerals Development Minister Hon Richard Musukwa
Mines and Minerals Development Minister Hon Richard Musukwa

Zambia is planning a law to compel mining companies to give local suppliers a fair share of procurement, Mines Minister Richard Musukwa.

Mr. Musukwa said during a meeting with suppliers, labour unions and other officials on the proposed law that the mining sector imported goods and services worth over $4 billion annually but only 10 percent went to local suppliers.

“This is a mismatch and must not be entertained. Mining investors have been a darling of foreign contractors,” Musukwa said, without specifying how much the government wanted miners to procure locally.

Zambia’s comparative advantage is in mining, and the government needs to ensure that the mining industry drives growth in other sectors of the economy, Mr. Musukwa added.

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22 COMMENTS

  1. Those plans are pipe dreams.

    Enact them first otherwise everyone will ridicule you.

    Never give a man credence when he constantly tells you what he plans to do / when realistically at his level he cools out of employment in his case in less than 24 months

    Thanks

    BB2014,2016

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    • LT editor this Mines Minister Richard Musukwa had a Q&A session …tell us what was discussed about KCM not this!!

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    • Why they allow the PF ministers to say anything???
      Why not just close everything until October 2021?

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    • In developed countries they would be thinking of automatic offers for student placements, apprenticeships for young people 16 year and over, gap years ..these dull ministers like Fossil Chikwanda are only thinking of lining their pockets throw proxy companies.

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  2. We have ridiculous situations where they can’t even buy nuts and bolts locally. Flat as our economy is, we still produce some.

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    • Knowing PF this is another ill-thought law without thinking things through like that 20% on govt construction projects where they can not enforce and regulate as they are compromised. I bet you all he is saying is 10% goes to middlemen not Zambian manufacturers…cadres and PF ministers buying nuts and bolts from a supplier in China at 100% profit markup nothing to do with value addition.

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  3. This is a sad state of affairs….of Zambia was run by any other race apart from Africans , this would never have been allowed to happen.

    They were busy concentrating on looting the borrowed monies and forgot to build industries to supply the mines ?

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    • These daft people like Lazy Lungu and this former Primary School tutor Richard Musukwa are incapable of thinking at that level..just look where Lungu is today he has moved to Kaputa from Kabwe where he was opening a small hotel owned by a foreigner I mean how does a hotel in Kabwe even benefit the people there who are unemployed.

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  4. Mines will be forced to buy procurements from PF and their cadres !!!!!!!!!!!!!!! This is non sensical !!! Where in Zambia can you buy the machinery required by Mines ??? The goods will be imported by Cadres and sold at 2000% mark up making it unviable to mine in Zambia !!!!!!!!!!!!!!!!!!! bye bye investors, hello mass increase of joblessness !! Viva PF !

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    • You are an idio..t . And don’t understand business. These mines buy from foreign suppliers who are not even manufacturers. This can be doneby us Zambian businessmen who have established good relations with manufacturers. And eventually start producing some of the inputs locally. We have to positive and very optimistic about our country. This is not about PF or UPND

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  5. Easier said than done, YOU WILL CREATE THE LAWS THAT YOU UNDERMINE THROUGH YOUR OWN CORRUPTION!! What has been happening to the local content law in the construction sector? When people complain that they have not benefited from the Mining boom,is bcoz there are no multiplier effects especially to promote manufacturing! MR.MUSUKWA,IF YOU ARE SERIOUS WITH WHAT YOU ARE SAYING,THEN YOU MUST START BY ENGAGING WITH LOCAL MANUFACTURERS TO IDENTIFY WHAT CAN BE PRODUCED LOCALLY AND COMPEL MINERS TO START SOURCING THOSE INPUTS LOCALLY!!

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  6. Good you read my recent article on how to utilize mines supply chain.Laws can be enacted but problem is enforcement.Also engage the mines and negotiate for captive suppliers relocation as there are capacity issues locally.

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  7. That language has always been spoken in Zambia, when will some one come and interpret it to be heard.

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  8. I am not sure why a new law needs to be passed when there is existing legislature i.e. The Mines and Minerals Act No 11 of 2015

    Section 20(1) states:

    A holder of a mining right or a mineral processing licence shall, in the conduct of mining operations or mineral processing

    operations and in the purchase, construction, installation and decommissioning of facilities, give preference to the —

    (a) materials and products made in Zambia; and

    (b) contractors, suppliers and service agencies located in Zambia and owned by citizens or citizen-owned companies.

    As the other colleague our biggest challenge lies in enforcement and unless otherwise this mandate is quite clear. The challenge is then on us to ensure that we the products required at the right time, at the…

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    • The ministers know that Zambians are not only docile and gullible but have a poor reading culture …I mean he knows he can say something and some people will think its a new initiative just like ACC has powers that can make corrupt elements think twice about stealing but they dont enforce them. You will be also shocked at what bills Bo Lubinda is going to propose in Parliament from NDF which include proposals like turning DEC into one national secruity body so FIC falls under it and that way no reports are published to it or any trend reports issued everything will be kept under the carpet. Zambians are not aware of this …they are simply passive drinking beer in the bar.

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  9. Engagement through dialogue and workshops can help. The quality of service and the time of delivery tend to dictate against selection of local suppliers. A company must be assisted in reducing foreign procurement but forced. Procurementmust be approached by sector. The mines can dialogue between themselves and devise effective ways of supporting local suppliers in a win win scenario.

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  10. Oh no! It’s not Zambian Suppliers he has in mind! It is about himself and his political clan! This is politicizing of business! Politics and business should never mix!
    Zambian Supplies quote to kill! They quote at astronomical prices! I remember working as Procurement officer in one of the mines where local prices were 100 times over the prices in South Africa and no after sale service like you are selling tomato? Unless Professionalism and fair pricing is also addressed, mining will be a dead Industry soon! Don’t be parasites on other people’s businesses! Open your own mines and get Your own Zambian suppliers and see how your cost of doing business will turn out!

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    • Is the same with road contracts …you will be surprised when you read previous AG Reports over the last 10 years of the names of companies sub contracted by RDA, even auto-mechanic are listed on the works as usual doing shamble works!!

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  11. Trouble with Edgar’s cabinet is they think many new laws are the solution to all the problems! Even when the laws already exist, they want to re-enact them? What a bunch of time wasters? Is it not the bad reading culture of our MPs that is causing this? I think only people who have done law should be allowed to stand as MPs! We cannot afford to have a Parliament of ignoramuses at law making conflicting laws for the country! It’s a recipe for anarchy! The current business climate in Zambia requires some level of deregulation!

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  12. Why Zambia is a big joke is that these same Ministers and connected cadres all want to be suppliers and contractors when they know nothing about this business. One cadre spent 3 months trying to know what a clinical thermometer was and where he could find plenty because he had been given a tender. Is that a joke?

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  13. Good plan but you must be aware of China’s model of development, they source everything from toothpick to excavator from China. This business model does not benefit countries like ours. Its time we realized that China is here to create market and jobs for their people and not locals

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