The President of the Association of Mine […]

The President of the Association of Mine Suppliers and Contractors (AMSC) in Zambia, Costa Mwaba, has raised concerns over foreign companies allegedly restructuring their shareholding to bypass the recently enacted Statutory Instrument No. 68 (S.I. 68).

The regulation, which came into effect on January 1, 2026, requires both large and small-scale mines to reserve at least 20% of their annual procurement budget for core mining goods and services sourced from local suppliers, a threshold set to increase over time.

 Mwaba stated that some companies, previously foreign-owned, have hastily reclassified themselves as Zambian-owned by transferring minority shares to local citizens raising concerns that this change allows them to qualify for contracts and benefits intended for genuinely local businesses under S.I. 68.

 “We are urging government agencies, including security wings and the Zambia Revenue Authority (ZRA), to thoroughly vet these companies,” said Mwaba.

“If a company was 100 percent foreign-owned before S.I. 68, and suddenly 25 percent is now held by Zambians, we need to verify that those shares were legitimately purchased, that proper taxes were paid, and that the new shareholders have the financial capacity to make such investments.” Mwaba cited concerns about instances where individuals with limited means, such as domestic workers, may be listed as shareholders with substantial stakes, raising questions about the authenticity of these transactions.

He advocated for a policy of naming and shaming companies found to be exploiting loopholes, arguing that such actions undermine the government’s efforts to empower local suppliers and defeat the purpose of the S.I. Mwaba also called out mining houses that deliberately sidestep the regulation by importing goods and services that should be procured from Zambian-owned businesses.

 He urged the government to impose punitive measures on offenders to deter similar practices and ensure the intended benefits of the law are realized.

“The supply chain must be respected, from manufacturer to wholesaler, retailer, and finally the consumer,” Mwaba emphasized.

“We need to support local suppliers and contractors to build value addition over time. Only then will Zambian businesses truly benefit from the policy.”

Article by Tyndale Muchiya