The Ministry of Mines and Minerals Development has announced new regulations compelling mining companies to significantly increase their procurement from local Zambian suppliers.
Principal Public Relations Officer, Shamwinda Tembo, said the move is aimed at fostering the growth of local enterprises, creating jobs and building a more resilient mining value chain.
Mr Tembo told the media that the Local Content Statutory Instrument (SI), signed by Minister of Mines and Minerals Development, Paul Kabuswe, under the Geological and Minerals Development Act of 2025, will come into effect on January 1, 2026.
He explained that under the new framework, mining companies will be required to allocate at least 20 percent of their procurement budget to local suppliers for core goods and services within the first six months of the SI’s implementation.
Mr Tembo noted that the threshold will progressively increase to 25 percent after one year, 35 percent within two years and a minimum of 40 percent within five years.
He added that the regulations also include provisions reserving certain categories of goods and services exclusively for Zambian companies, to maximize local participation in the mining sector.
“Large contracts will be subdivided into smaller lots to allow multiple local businesses to participate,” he said.
To ensure compliance, MrTembo said mining firms will be required to develop and submit detailed Local Supplier Development Programmes to the ministry and provide annual updates on the level of local company participation.
He warned that failure to adhere to the new requirements would result in penalties as specified under the Act.
“This initiative is part of the ministry’s commitment to supporting local industry growth and enhancing economic development through sustainable mining practices,” he said.
