ZIPS Signs MoU with Mine Suppliers to Boost Zambian Businesses Under Local Content Rules
The Zambia Institute of Procurement and Supply (ZIPS) has signed a memorandum of understanding (MoU) with mining suppliers and contractors to strengthen local content implementation and increase the participation of Zambian businesses in the mining sector.
The agreement, involving the Association of Mine Suppliers and Contractors of Zambia and the National Union of Mine Suppliers and Contractors (NUMISCO), seeks to improve supplier capacity, promote professional procurement practices and expand access to mining procurement opportunities for local businesses.
The partnership will facilitate joint training programmes, research, knowledge sharing, supplier development initiatives, policy advocacy and stakeholder engagement to support the implementation of Statutory Instrument (SI) No. 68 of 2025 on local content.
Speaking at the signing ceremony, Ministry of Mines and Minerals Development Permanent Secretary Hapenga Kabeta said the initiative was important as the Government pursued its target of producing three million metric tonnes of copper annually by 2031.
Dr Kabeta said increased mining production should translate into industrial development, job creation and greater retention of mineral wealth within Zambia.
Represented by Minerals Regulation Copperbelt and North-Western Provinces Regional Coordinator Yoram Chulu, he said the local content regulations established progressive procurement thresholds for qualifying Zambian companies.
The thresholds start at 20% in 2026, rise to 25% in 2027 and are expected to reach 40% by 2031.
The regulations also reserve 100% of procurement for non-core mining goods and services for qualifying local companies.
In addition, qualifying Zambian suppliers receive a 15% evaluation advantage when competing for tenders involving core mining goods and services.
Dr Kabeta urged local businesses to strengthen their technical expertise, quality standards, financial management and delivery capacity to compete effectively for the available opportunities.
Copperbelt Province Permanent Secretary Lawrence Mwanza encouraged suppliers and contractors to participate in stakeholder meetings and training programmes, warning that poor attendance could prevent businesses from benefiting from the opportunities created by the regulations.
Meanwhile, ZIPS President Daniel Kabamba identified limited capacity among suppliers and procurement professionals, alongside poor attendance at training sessions, as persistent challenges to effective local content implementation.
Mr Kabamba called on mining companies to establish structured supplier development programmes to help local businesses meet industry requirements and compete for contracts.
NUMISCO President Nyambe Chikurune said the MoU would provide a platform for stakeholders to address complaints collectively, monitor implementation progress and develop solutions to challenges facing local suppliers.
The partnership is expected to strengthen collaboration between procurement professionals, mining companies and local suppliers as Zambia seeks to ensure that increased mining investment generates wider economic benefits for domestic businesses.
