Local Content In Zambia: Turning Intent Into Impact

Zambia is redefining what “local content” really means moving beyond company registration to genuine economic empowerment for its citizens. This article dives into the heart of Zambia’s mining sector, exposing the gap between reported local procurement and actual benefits to Zambian-owned firms. With only 2.5% of mining inputs sourced from Zambian companies, the need for stronger legislation, SME support, and skills development is urgent. Drawing lessons from South Africa, DRC, and West Africa, the piece outlines a bold roadmap anchored in the Minerals Regulation Commission Act no.14 of 2024. It’s a call to action for government, private sector, and citizens to turn policy into prosperity making the Zambian citizen truly valuable in supply chains and industrial growth.

Local content is a big headline in Zambia today. It features in speeches, policy frameworks and strategies across both the public and private sector. At Policy level, the Government has shown commitment through the National Local Content Strategy (2018–2022) and more recently by supporting Local Content legislation in the Minerals Regulation Commission Act no.14 of 2024 which reflects a clear will to institutionalise and enforce participation of Zambians in key value chains. The term “local content” is sometimes misunderstood, reduced to registration of companies or domiciling of foreign firms, while the true essence—value creation and benefits for Zambian citizens—remains to be fully unlocked. The mining sector as the backbone of Zambia’s economy offers the clearest example. To debunk myths, we must interrogate the numbers, clarify misconceptions, and outline a way forward that builds on the progress already being made.

What Local Content is Not

At first glance, Zambia’s mining sector seems to have achieved notable progress. According to the African Development Bank (AfDB), mining houses report that 84% of their procurement is “local” (AfDB, 2019). But a deeper look reveals that only 13% represents true local procurement—goods manufactured in Zambia or services delivered by genuinely Zambian-owned firms. In fact, only 2.5% of goods and services are supplied by Zambian-owned companies (AfDB, 2019)

These statistics have adverse effects. When a foreign-owned distributor imports mill balls through Lusaka, it is counted as “local procurement.” But when a Zambian engineer in Solwezi manufactures the same product, employing artisans and sourcing raw materials locally, the economic multiplier effects are significantly different. Both are recorded as “local,” yet only one builds industries, creates jobs, and supports value chains. Debunking local content therefore starts with clarity: it is not simply about registration or Statements; it is about increased Local participation in procurement, ownership, value addition, labour and skills transfer.

What Local Content Means for Citizens

For citizens, local content is more than a statistic—it is jobs, business opportunities, and citizen benefit for economic development. According to the International Council on Mining and Metals (ICMM) it was estimated that Zambia’s mines spend US$1.8 billion annually on manufacturing-related inputs. Yet, of this, only US$100 million—just 6%—went to local manufacturers (ICMM, 2014, cited in MCTI, 2018). The rest ended up abroad. In plain terms, for every kwacha spent on inputs, 94 ngwee went to foreign suppliers while only 6 ngwee stayed with Zambian firms. This externalisation could explain why Zambia has failed to build strong mining-linked industries despite over a century of copper production. Local content should mean that Zambian SMEs in Ndola or Kitwe fabricate mill liners, process chemicals, or assemble electrical components for the mines. Instead, these opportunities are routinely lost to imports. Pleased to recognise the Manufacturing plant for Mill Liners, Screen media and Slurry pumps recently set up near Chambishi MFEZ, this is a positive step towards changing this narrative. The AfDB estimates that if fully localised, five opportunity clusters—metallic components, electrical goods, industrial minerals, chemicals, and core services—could generate US$1.2 billion annually (AfDB, 2019). That could mean factories in Kabwe producing valves, workshops in Kitwe repairing engines, and SMEs in Lusaka blending chemicals.

Further to this, true local content builds economic resilience. A Zambian supplier base means more taxes paid locally, stronger linkages and a buffer against foreign exchange shocks. For citizens, this is not policy jargon—it is food on the table, school fees paid, and improved livelihoods. Local content then, should mean high value contracts for SMEs, more jobs for welders, technicians, engineers and stronger forward and backward linkages in our economy. This is exactly what government’s Local Content Strategies and Laws should be seeking to entrench — ensuring Zambians benefit more from their mineral wealth – “Make the Zambian Citizen Valuable”

Regional Best Practice

Zambia can draw lessons and encouragement from regional peers while adapting solutions to its own context. Noteworthy is that local content policies in most countries are a legal requirement to empower local SMEs to supply to the mines, create jobs and facilitate the transfer of valuable skills and knowledge (Tordo et. al., 2013). South Africa: Mining Charter III South Africa’s Mining Charter III stands as one of the continent’s most advanced frameworks. Mandates 70% of goods and 80% of services from South African firms and 30% black ownership in mining rights and companies, embedding equity as part of empowerment (Kasolo, 2024).

The Charter has had its challenges, particularly in enforcement and product verification, but it demonstrates that clear thresholds tied to ownership and manufacturing can drive empowerment. Studies showed that achieving these targets could retain R200 billion annually within the South African economy. Lesson for Zambia: Set quantified, percentage-based targets tied to value addition and ownership, not just registration.

Democratic Republic of Congo: Mining Code (2018)

The DRC’s revised Mining Code takes a bold approach. Subcontracting contracts are reserved for companies controlled by Congolese shareholders. Mining houses must sign community development agreements, linking extraction directly to local benefits. Lesson for Zambia: Tie eligibility for supply particularly for non-core goods and services contracts to genuine Zambian ownership and embed community development obligations in mining agreements. West Africa: Ghana, Guinea, Nigeria

·       Ghana mandates annual local content plans and performance reports, including employment quotas and procurement targets.

·       Guinea reserves exploration permits for Guinean nationals or majority-owned local firms.

·       Nigeria’s oil and gas sector requires 100% local ownership in certain service categories and enforces succession planning for expatriates.

Lesson for Zambia: Enforcement must go hand in hand with clear definitions, mandatory reporting, and succession planning. Taken together, these regional benchmarks show that Zambia’s current framework— based largely on strategy documents and weak enforcement—falls short. To close the gap, Zambia must borrow the best practices: quantified procurement thresholds, ownership linked incentives, community agreements, and strong monitoring systems.

Way Forward for Zambia: The mineral regulation commission Act no.14 of 2024 states as a prerequisite for a mining company to be issued with a mining license they must undertake to promote Local Content by prioritising local companies in supply and value chains and employment of local people. The progress made through Zambia’s National Local Content Strategy and the Government’s intent to consider and support Local Content legislation provides a strong foundation. Building on this, the following steps are key:

1.      Re-Definitions – Clearly distinguish between domicile and ownership/ value addition to ensure statistics reflect true local benefit.
2.           Strengthened Legislation – Finalise and operationalise the Local Content legislation to set percentage-based thresholds, require annual reporting, and empower regulators with enforcement mechanisms.
3.     SME Support – Scale up supplier development, access to financing and technology transfer so that local firms can meet industry standards.
4.       Skills Development – Integrate succession planning to ensure skills transfer through Joint Ventures and partnerships, while aligning universities and colleges with mining sector needs.
5.      Link to Industrial Policy – Use mining procurement as an anchor for industrialisation, ensuring more copper and minerals are processed locally rather than exported raw.

Conclusion

Graduating Local content discussions from Intentions to impact is not about criticising stakeholders, it is about reconciling views. The progression of the National Local Content Strategy and Local Content Legislation shows that the political will is present. The private sector has also demonstrated readiness to engage. Citizens too, are eager to participate significantly. The challenge and opportunity to transform intent into impact. With legislation, enforcement, SME support, and skills development, Zambia can turn local content into a true engine of industrialisation and prosperity. Key takeaways – Let us make the citizen valuable in the supply & value chains— government, private sector and citizens must work together— local content can cease to be a far-fetched pipe dream and instead become the bridge between Zambia’s mineral wealth and inclusive national development.