As Chinese mining investors continue to expand […]

As Chinese mining investors continue to expand their foothold in Zambia’s lucrative mineral sector, lifted by state-facilitated financing from their home government, growing calls are emerging for Zambia to adopt a comparable model in support of its own citizens operating in the industry.

The Federation of Small-Scale Mining Associations of Zambia (FSSMAZ) is questioning why Zambian miners, who operate on their own soil and hold rights to their own land, are systematically denied access to the kind of structured, government-backed financial support that foreign investors, mainly those from China and other nations, routinely receive.

“Look at the Chinese who are coming in. Some of them access loans from their government and repay them according to structured agreements tailored to their operations.

Why can’t Zambia offer the same to its own people?” said Joseph Mwansa, President of FSSMAZ, in an exclusive interview with the Zambian Business Times (ZBT). He noted that most of the foreign investors arriving in Zambia have benefited from statebacked financing mechanisms, including loans facilitated through government-linked institutions that enable them to establish and scale mining operations with relatively accessible capital.

 Local Zambian miners, by comparison, face tough barriers to financing, often lacking the collateral or credit history required by commercial lenders. He added that despite Zambia’s mining sector remaining the backbone of its national economy, accounting for more than 70% of the country’s foreign exchange earnings, the vast majority of that wealth continues to flow through foreign-owned operations, leaving local miners with limited means to compete, invest, or grow.

 Proponents of a Zambian state-backed financing model argue that the government could design a structured loan programme, with repayment terms calibrated to production cycles and prevailing commodity prices, that would give local miners a genuine and sustainable foothold in the sector.

 Such a model, they contend, would not only stimulate broader local economic participation but also reduce Zambia’s long-term dependence on foreign capital. Critics, however, point to Zambia’s ongoing debt restructuring challenges as a significant constraint on new government lending programmes.

 The country remains under considerable fiscal pressure following its 2020 sovereign debt default, limiting the government’s immediate capacity to introduce large-scale financing initiatives. Nevertheless, advocates insist that empowering local miners transcends financial considerations, it is fundamentally a matter of economic sovereignty.

 If Zambia continues to extend a more favourable operating environment to foreign investors than to its own citizens, the nation risks remaining a resource-rich country that reaps few of its own rewards.

Mwansa outlined the broader economic case for government intervention, highlighting a cascade of potential benefits. “Everything that we buy locally, the government collects tax on.

Beyond that, as production increases, it forces us to increase our working capacity, meaning more jobs, and a meaningful contribution to decongesting unemployment in this country,” he said.

He further argued that a thriving small-scale mining sector would generate tax revenues sufficient to fund national infrastructure development.

 “When the mines are doing well, they will be paying tax, and the government will have funds to spend. All corners of our country will see development because the mining sector is performing well.”

On the government’s ambitious target of three million metric tonnes of copper production, Mwansa revealed that FSSMAZ had received no formal communication outlining the expected contribution of smallscale miners toward achieving that goal. “I have not seen anything on my table, or through the media, indicating that the government has communicated directly to us what they want us to achieve,” he said, adding that information typically filters through to the federation informally, via media reports or occasional government-convened meetings, rather than through structured, direct engagement.

Despite this, FSSMAZ believes local miners have the capacity to contribute between 30% and 60% of the national production target, provided they receive the necessary machinery and capital injection. “If they help us with machinery and capital, we can definitely reach 40 to 60 percent,” Mwansa affirmed. “We have the capacity and the potential to contribute meaningfully to the nation’s economy.” Mwansa drew a pointed comparison between the mining and agricultural sectors, noting that far mers in Zambia have historically been able to progress from small-scale to large-scale operations through access to government-facilitated loans and subsidised inputs.

 No equivalent pathway exists for miners. “In agriculture, they give farmers loans and they benefit from structured support. It is easier for them to improve from small-scale to large-scale. But for small-scale miners, how do you grow when you are financially stagnant?” he asked.

He called on the government to formulate a clear policy framework that would enable artisanal miners to graduate to small-scale operations, and small-scale miners to eventually transition into large-scale producers.

 “If we can start moving in those directions, Zambia will be one of the richest countries in the world, not just on paper, but in reality,” Mwansa said. “The resources are there. What is missing is the political will to invest in the people who know this land best.’’

Article by Tyndale Muchiya