The Association of Mine Suppliers and Contractors […]

The Association of Mine Suppliers and Contractors (AMSC) has called on the Zambian government to make public the local content compliance reports submitted by mining companies in the first quarter of 2026.

Speaking in an interview with the Zambian Business Times – ZBT, AMSC President Costa Mwaba stressed that public access to these reports is crucial for transparency and accountability, particularly in identifying companies that have awarded contracts meant for Zambian suppliers and contractors to foreign entities.

AMSC President emphasized that while mining firms have already submitted their reports to the Ministry of Mines as mandated by law, there is a need for the public and the association to have access to the reports.

 “We need to see which mines are non-compliant so we can analyze the situation and determine the reasons behind non-adherence, whether it’s due to capacity constraints, negligence, or deliberate action,” the President stated. “These statistics will enable us to inform the public and advocate for corrective measures based on sound evidence,” the association noted.

The Ministry of Mines and Minerals Development (MMMD) recently confirmed that most mining companies in Zambia, predominantly foreign-owned, have not met the requirements of the local content law, which took effect on January 1, 2026. The law mandates that mining companies allocate a minimum of 20% of their annual procurement expenditure for core mining goods and services to local suppliers, increasing to 25% after one year, 35% after two years, and 40% within five years.

Under the Local Content Statutory Instrument No. 68 of 2025, mining companies are also required to file progress reports within three months of the law’s implementation. However, the Permanent Secretary for MMMD, Dr. Hapenga Kabeta, revealed that compliance has been disappointing, with many foreign-owned firms misunderstanding the definition of a “local company” and misclassifying themselves due to their longevity in Zambia. This has resulted in penalties for non-compliance.

 AMSC President Mwaba reiterated that the association’s concerns are being validated by these ongoing reports. “There has always been a problem in the mining sector regarding support for local suppliers and contractors. If mining companies genuinely want to comply, they should verify the Zambian ownership of their suppliers through proper documentation,” Mwaba said.

He welcomed government efforts to penalize non-compliant firms, insisting that enforcement is essential to achieving the goals of the local content policy. Despite the challenges, Mwaba affirmed that Zambian suppliers and contractors have the capacity to deliver. “Financial institutions are ready to provide funding, and mining firms can collaborate with local businesses to fulfill their service needs,” he added

Article Tyndale Muchiya