FQM, Inde Credit team up to finance Zambian SMEs in the mining supply chain

15 Views First Quantum Minerals Zambia and Inde Credit have partnered to make it easier for Zambian-owned suppliers and contractors to access finance and compete in the mining sector. The collaboration was announced as part of efforts to support implementation of SI 68 of 2025 — the Local Content Regulations — which push for greater […]

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First Quantum Minerals Zambia and Inde Credit have partnered to make it easier for Zambian-owned suppliers and contractors to access finance and compete in the mining sector.

The collaboration was announced as part of efforts to support implementation of SI 68 of 2025 — the Local Content Regulations — which push for greater participation of Zambian companies in mining value chains.

Speaking during an interview with Financial Insight Zambia, Inde Credit CEO Peter Bwalya explained that the partnership will help reduce both the risk and time involved in lending to SMEs.

Because the facility is anchored to FQM as the buyer, banks can underwrite loans using FQM’s purchase orders and invoices rather than relying only on the supplier’s own credit history.

He said Inde Credit will offer two main products: receivables-based financing, or invoice discounting, and order financing. The model will also allow for direct payments to suppliers in future, which reduces the risk of misinformation for both the business and the lender.

With this structure, Inde Credit expects to offer more favorable interest rates and faster approvals. That means suppliers can deliver quality products on time, meet demand, and scale their operations.

Bwalya said the bigger vision is to help healthy SMEs grow into medium and eventually large corporates. “Inde Credit makes Zambian businesses work” by addressing the funding gaps that hold them back, he added.

FQM framed the initiative as more than just financing. It’s about ensuring suppliers and contractors have the working capital to thrive, deliver within good turnaround times, and contribute to Zambia’s mining growth targets.

The announcement comes as FQM continues to push industrialization in North-Western Province through Kansanshi, Trident, and the Kalumbila Multi-Facility Economic Zone. Officials say developing a strong local supplier base is central to that strategy.

Both parties signed the agreement at a ceremony attended by FQM and Inde Credit executives, with a handshake sealing the deal to support Zambian businesses in the mining value chain.

Meanwhile, this is not the first time for FQM to pen deals aimed at opening lines of credit for SMEs in the mining value chain.

The mining giant most recently, signed agreements with five banks to help Zambian-owned mining service providers access cheaper and faster financing, in what the company says is a direct response to a long-standing gap in the local mining value chain.

The mining firm inked Memorandums of Understanding with Zanaco, First National Bank, ABSA, and Stanbic Bank. The aim is to develop financing products specifically tailored for Zambian companies that supply goods and services to FQM’s operations.

Speaking at the ceremony, FQM Zambia Country Director Anthony Mukutuma said the deals go beyond a typical banking arrangement. He argued that while jobs, taxes and royalties dominate discussions on mining’s contribution, the supply chain remains Zambia’s biggest missed opportunity.

He noted that FQM spent more than $2 billion last year alone on local suppliers. The challenge, he said, has not been lack of demand, but lack of affordable finance. High borrowing costs and strict lending requirements have made it difficult for local firms to compete with better-resourced international contractors.

The new financing model is built around Statutory Instrument No. 68 of 2025 — the Local Content Regulations. Under the rules, eligible Zambian companies will be able to access invoice discounting, order financing and industrial term loans tied to their contracts with FQM.

What makes the arrangement different is how risk is assessed. Instead of judging each small supplier on its own balance sheet, the banks will use FQM’s credit rating as the anchor. That, officials say, lowers the risk and cost of lending.

The process will also be supported by digital platforms that can verify invoices and purchase orders in real time, allowing banks to approve loans faster than with traditional collateral-based lending.

Zanaco CEO Dr. Mukwandi Chibesakunda said the bank’s involvement fits into its wider goal of supporting private sector growth and inclusive economic transformation. She linked the initiative to government’s copper production targets, citing Ministry of Mines data showing 8% year-on-year growth and a national ambition to hit 3 million metric tonnes annually by 2031. Achieving that, she said, will require a local supply base that can scale.

Analysts say the MOU will test whether local content policy can translate into real financing at scale. Supply-chain finance anchored to a big buyer is common in other markets but has been rare in Zambia’s mining sector. If it works, the model could be copied by other mining houses and extend beyond FQM’s supplier network.

The move also fits into FQM’s broader industrialisation plans in North-Western Province, centered on Kansanshi, Trident and the Kalumbila Multi-Facility Economic Zone. The company says developing local suppliers is now a core part of that strategy, not just a CSR project.