Mining Local Content SI
According to a recent report commissioned by the African Development Bank (Lombe, 2019), the Zambian Mining industry consumed an estimated $2.4bn worth of selected goods and services in 2017. Locally manufactured goods and resident service provision only accounted for 10.6% of total purchases. Goods and services procured from Zambian owned firms only accounted for 2.1% of total purchases.
To rectify this, the Ministry of Mines and Minerals development has proposed to amend a deficiency in the Mines and Mineral development Act no. 11 of 2015 (section 20) with Explicit Local procurement targets.
This mining local content SI will inevitably come pass, however for reasons that remain unclear, no survey on local capacity to supply the mines is available. Effectively the procurement percentages in the SI will be arbitrarily imposed. According to BRRA and the Business Regulatory Act (2014), a regulatory impact assessment should be carried out to ascertain capacity but unfortunately in light of recent legislation this is plausibly unlikely.
For this reason, please find a mine supply list below where mine suppliers are requested to indicate the goods or services (e.g. cleaning services or Mill balls) they can supply as well as a recommended procurement percentage. We have an open window to proactively make submissions to the ministry of mines before this SI goes to cabinet.
Kindly download the suppliers template below and send back a filled in supply template with recommended percentages to kampambashula@gmail.com/ research-2@zacci.co.zm
Your assistance in helping us serve you the business community is appreciated.
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