FQM courts five financiers to boost local suppliers in mining supply chain

50 Views LUSAKA – First Quantum Minerals Zambia is opening a new funding channel for local businesses, after bringing five financial institutions into its supplier programme to help Zambian companies finance mining contracts. The move announced Sunday ties directly into the government’s Local Content Regulations under Statutory Instrument 68 of 2025, which came into force […]

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LUSAKA – First Quantum Minerals Zambia is opening a new funding channel for local businesses, after bringing five financial institutions into its supplier programme to help Zambian companies finance mining contracts.

The move announced Sunday ties directly into the government’s Local Content Regulations under Statutory Instrument 68 of 2025, which came into force on 1 January 2026.

The law requires mining firms to steadily increase purchases from Zambian-owned businesses and to show how they are building local capacity.

FQM Zambia Country Director Anthony Mukutuma says the biggest obstacle for many local contractors has not been skills, but money to deliver.

“A lot of Zambian companies can do the work, but they get stuck when they need to buy materials or hire people upfront,” Mukutuma said. “We’ve now linked our suppliers directly to banks and a credit provider so that a confirmed FQM order can be used to unlock financing.”

The five partners are Zanaco, led by CEO Mukwandi Chibesakunda; Stanbic Bank Zambia, represented by Head of Corporate and Investment Banking Helen Lubamba; Absa Bank Zambia, represented by CFO and Regional Head of Strategic Tax Solutions Venus Hampinda; FNB Zambia, represented by Commercial and Business Banking Director Kabanda Lilanda; and Inde Credit Zambia, led by Managing Director Peter Bwalya.

How it will work is straightforward. When FQM awards a contract to a qualifying Zambian supplier, the company will share the order details with the partner financiers. The banks and Inde Credit will then use that contract as part of their assessment to provide loans, overdrafts or other facilities. The idea is to turn a purchase order into collateral, making it easier and faster for businesses to get capital.

Mukutuma said the structure is meant to prevent a common problem where local firms win tenders but cannot execute because they lack working capital and end up subcontracting to foreign companies.

“We want the money to stay here and the jobs to stay here,” he said. “If a business in Solwezi or Kalumbila gets an order, it should be able to walk into one of these institutions and get support to deliver.”

Government officials have been pushing mining companies to do more than tick boxes on local procurement. SI 68 sets annual targets and reporting requirements, and it expects measurable growth in the participation of Zambian suppliers. FQM says the financing platform is one part of a broader package that also includes supplier training, technical support and efforts to simplify bidding processes.

The bank representatives said the partnership makes commercial sense because mining contracts offer reliable payment streams.

Chibesakunda said Zanaco will look at both big and small enterprises. “From a transporter to a fabrication shop, if you have a real order we want to have that conversation,” she said.

Lubamba said Stanbic will draw on its experience financing mining projects across the region to tailor repayment schedules to project timelines.

Hampinda said Absa will combine lending with advisory services to help firms manage cash flow.

Lilanda said FNB will focus on growing mid-sized contractors.

Bwalya said Inde Credit will provide flexible short-term funding for businesses that need quick disbursements.

Analysts say access to finance has long been the missing link in Zambia’s local content push. Without it, targets on paper do not translate into real business growth. By anchoring loans to FQM contracts, lenders reduce their risk while suppliers get a foot in the door.

Mukutuma stressed that this is not a subsidy. The loans will be commercial, but structured around the realities of the mining sector. He urged suppliers to keep their records up to date and to engage early with both FQM procurement and the banks.

FQM also committed to tracking results and including them in its annual local content reports to government. The company said it will measure how many Zambian firms accessed funding, the value of contracts delivered, and jobs created.

Copper remains central to Zambia’s economy, and with investment picking up, demand for local goods and services is expected to rise. For that demand to benefit Zambians, companies need capital to scale.

“Local content only works if Zambian businesses can actually deliver,” Mukutuma said. “These five financial institutions are now part of making that happen.”