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Smart Zambia Develops System to Penalise Non-Compliant Mining Firms

Government’s electronic division, Smart Zambia Institute, has developed a digital content management system for the mining sector that will automatically penalise companies that fail to meet local content requirements.

The system is part of efforts to increase Zambian participation in the mining industry.

Last year, Government introduced a Local Content statutory instrument requiring mining firms to allocate at least 20 percent of their annual procurement budget to local suppliers, with the target set to rise to 40 percent within five years.

The policy is intended to support local manufacturing, create employment, and ensure citizens benefit from the mining sector, with Smart Zambia advancing its implementation through digital solutions.

Smart Zambia National Coordinator Percy Chinyama said the system has been designed to monitor in real time the share of business awarded to local suppliers and service providers.

He explained that the platform will automatically impose penalties on mining firms that exceed limits on foreign procurement or fail to meet the required local content thresholds.

Chinyama said the initiative aligns with government’s broader economic goals, including increasing copper production to three million metric tonnes annually and growing the economy to US$60 billion.

He added that the system is intended to address practical challenges by ensuring that digital solutions directly respond to issues affecting the sector.

Chief Technical Officer Kasali Musenge said digitisation in sectors such as mining has already contributed to reducing fraud and corruption by improving transaction traceability.

She noted that digital systems help ensure that economic benefits reach intended beneficiaries and support overall economic growth.

The platform forms part of government’s wider push to digitise public sector management systems, with a focus on improving transparency, strengthening enforcement, and reducing manipulation of procurement data.

Chinyama said training for mining companies on how to use the system has already started, and the platform will also provide data to guide policy decisions on local content compliance.

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