Maximizing The Opportunities Pre Sented By The Local Content Si

Zambia’s Local Content Statutory Instrument presents significant opportunities for local entrepreneurs and SMEs to participate in the country’s mining supply chain. This article explores how the Local Content SI can provide access to mining contracts, supplier development and training programmes, financing support, and opportunities to build stronger business portfolios. It also highlights practical steps entrepreneurs can take to position themselves to benefit from the growing opportunities within Zambia’s mining sector.

BY WABWILA MUSONGOLE

In the past, the Copperbelt has been associated with illegal small-scale mining, and the infamous individuals who seemed intent on making lawless wealth generation the trend. Many youths became infatuated with the lifestyle exhibited and influence wielded by these groupings, causing the trend to grow all the more.

Thankfully, the province has recovered since that time. However, that experience served to underline an important fact: there should be accessible methods through which indigenous individuals can access wealth generated within their localities, lest the local communities rise up and create one outside the law.

According to statistics availed by the Ministry of Mines and Minerals Development, more than 5 billion USD is spent annually on mining procurement, of which only 15 to 20 percent is awarded to local companies and less than 1 percent goes to fully Zambian-owned enterprises.

Today, Zambia boasts official framework that favours local entrepreneurs and enterprises for provision of goods and services to mining firms and mining related companies.

THE LAW

In 2025, the government of Zambia introduced the Geological and Minerals Development (Local Content) (Preference for Goods and Services in the Mining Sector) Regulations under Statutory Instrument No. 68 of 2025, commonly known as the Local Content SI. This statutory instrument mandates mining companies to reserve a portion of their annual budget for Zambian suppliers.

Knowing that the law is a new arrival, the act provides for a gradual increase in that percentage, giving mining firms time and space to make the necessary adjustments since it was operationalized in January 2026.

Now that the foundation has been laid, we can unpack what these regulations mean, who they benefit, and the opportunities they provide.

SO WHAT?

The objective of this set of regulations is to benefit local companies by providing them with access to the wealth generated by mining activities, and retaining those proceeds within the Zambian economy.

Basically, this is a country-sized cash cow that every single entrepreneur in this country should milk. The onus is on the business entity to identify their niche and begin to prepare. Our desire is to outline some of the opportunities the SI provides.

1. It gives entrepreneurs (in various disciplines) access to wealth generated by local mining activities.

Oftentimes, a statement like this may sound purely motivational, but a peek into the Local Content SI proves how literal it is. (The document can be downloaded from the Ministry of Mines and Minerals Development website at no cost.) From page 6 to page 8, the act outlines the various goods and services that are necessary for mining firms to run smoothly.

Granted, under the first part of the list (the First Schedule), the technical jargon expected is everywhere. The second part (the Second Schedule), however, feels like a “no-entry fee” notice on the door leading to an A-list party.

Transportation, general cleaning and laundry, plumbing and other sanitary services are only a few of the numerous needs mining firms have.

These are services many individuals and entities provide every day! Government is telling you that every mining company you can think of now has a percentage of their budget set aside for you. There is, however, an emphasis on quality that must be highlighted. This SI is an open invite, but the fact remains that excellence is none-negotiable. That being said, do not hold back.

Additionally, if your SME is on the smaller side of the scale, there is no need to despair. The Local Content SI states that a contract can be subdivided between two or more business entities if one is unable to meet the demand of the mining company on its own.

If you are reading this and you’re not an entrepreneur, make it your personal challenge over the next few months – there is plenty of mineral cake to go around.

2. It gives entrepreneurs access to training programmes developed by mining firms to ensure local suppliers are equipped to meet their needs.

In case you are not yet convinced that the Local Content SI is for the average entrepreneur as much as it is for the business executive, this point is for you. This act mandates mining companies to prepare training courses called Supplier Development Programmes (SDPs) aimed at teaching local companies all they need to know in order to supply the firm in question.

These programmes are meant to assess supplier capacity, identify and address gaps through skills training and technology transfer, among other objectives.

Better yet, mining companies are tasked to provide working capital support for contract execution, and facilitate access to commercial financing. By now, you may have realized that entrepreneurship should genuinely be next on your list of hobbies to try out this year.

If you haven’t yet fallen off your chair, you might like to know that there are a number of mining firms that are doing well with regards to SDPs.

Nonetheless, it is worth mentioning that credible institutions such as the Zambia Chamber of Commerce and Industry (ZACCI) have pointed out that the business world should have seen more effort from mining firms to fulfill their mandate as stipulated by the act in the time that has elapsed since the Local Content SI was operationalized. The hope is that the pace at which progress is being made picks up in response.

3. It builds and elevates the portfolio of both the entrepreneur and business entity.

Being associated with a mining or mining related company is prestigious in its own regard. It raises eyebrows and comes with industrial “street cred.” It increases your credibility while letting onlookers and potential clients know that you are not small at all.

WHAT NOW?

At this point, all sorts of brilliant ideas may have come to mind, as they should. You may also be wondering where to start. Some simple guidelines may help you get the ball rolling:

• Read and understand the Local Content SI. Knowledge is power, and understanding makes that knowledge mean something to you.

• Join business associations. Being part of a group makes it easier to seek audience with necessary stakeholders, and even access the firms and organizations you are targeting. There is power in numbers.

• Be bold enough to approach or contact the Ministry of Mines and Minerals Development, as well as the Ministry of Small and Medium Enterprise Development, as their sole purpose is to facilitate your growth and put you in a position to flourish. Your questions need not be highly intellectual. A desire to learn paired with commitment is all you need.

We look forward to seeing local suppliers rising, shining, and reaping the benefits of the blank empowerment cheque that is the Local Content SI.