The Ministry of Mines and Minerals Development’s […]

The Ministry of Mines and Minerals Development’s Permanent Secretary, Dr. Hapenga Kabeta, has stated that the performance report on Zambia’s local content law for mining companies remains confidential nearly nine months after its implementation.

The local content law, enacted through Statutory Instrument No. 68 of 2025 and effective from January 1, 2026, requires mining firms to allocate a minimum of 20% of their annual procurement expenditure for core goods and services to local suppliers.

This requirement will rise to 25% after one year, 35% within two years, and 40% within five years.

Responding to an inquiry from the Zambian Business Times (ZBT) regarding the performance of the local content law from January to June 2026 and the availability of related reports to the public, Dr. Kabeta confirmed that a report was generated following the first quarter submissions.

 However, he emphasized that this report is currently not available for public dissemination.

“We have shared the feedback with the mining companies. The system we use allows companies to register and submit their reports freely, and it provides them with feedback on their compliance,” Dr. Kabeta explained.

He noted that the Ministry is withholding the report due to misunderstandings among stakeholders in the mining sector, often stemming from a lack of clarity on certain legal provisions.

“Some companies that have operated in Zambia for many years remain classified as foreign entities under the law, despite considering themselves local. The system has identified such cases,” Dr. Kabeta said.

He further highlighted that many mining companies’ ICT infrastructure providers are predominantly foreign-owned, which does not align with the objective of the local content law.

“We expect companies providing these services to be locally owned and to meet the prescribed shareholding thresholds,” he added.

 Dr. Kabeta stated that the Ministry plans to make the report public towards the end of the year. Depending on the progress made, the Ministry may also recognize companies that demonstrate the highest compliance and those that have contributed the most significant payments to local suppliers under the local content regulations.

Article by Tyndale Muchiya