Copperbelt – Good governance experts based on the Copperbelt have urged the Zambian Government to take immediate action to protect the interests of local contractors, suppliers, and communities amid growing dissatisfaction with mining companies operating in the region. Complaints from local stakeholders, including contractors, suppliers, and community members, have focused on the lack of business opportunities, jobs, and fair treatment from major mining firms.
Concerns have risen around the perceived preferential treatment given to foreign companies by prominent mining firms, such as Mopani and Konkola Copper Mines (KCM), over Zambian businesses. Local suppliers and contractors claim that they are being sidelined in favor of foreign entities when it comes to securing contracts, supplying goods, and employing workers. Furthermore, many local businesses are struggling with delayed payments, sometimes lasting up to 120 days, which has caused significant financial hardship.
Mr. Mulenga, a well-known good governance advocate, highlighted the urgency of the situation, stressing that the government must act swiftly to address the concerns raised by local stakeholders. He emphasized that the complaints regarding foreign preference in contracting, sourcing, and employment were valid and deserved immediate government intervention.
“Government action is urgently needed in response to the concerns expressed by Copperbelt suppliers, contractors, and other stakeholders about the activities of Mopani and KCM investors,” Mr. Mulenga said. “According to the suppliers, major mining firms are favouring foreign companies for business, disregarding corporate social investment in mining towns, putting local businesses last, and delaying supplier payments by up to 90 to 120 days. Economic stability is being threatened by this circumstance, and the Copperbelt’s population is becoming increasingly dissatisfied.”
Local businesses have also expressed frustration with the lack of corporate social responsibility (CSR) programs from mining companies. Despite the presence of vast mineral wealth in the region, many mining towns are reportedly missing out on essential investments in infrastructure, education, and healthcare. The absence of these investments is seen as a failure to support the communities that host these lucrative operations.
Mr. Mulenga further criticized the status quo, calling it intolerable for local contractors and suppliers to be excluded from major mining-related opportunities. He emphasized that foreign companies should not be prioritized over Zambian businesses, especially when local contractors have the expertise and capacity to meet the demands of the sector. Moreover, the delayed payments from mining firms have placed a strain on small and medium-sized businesses, preventing them from paying employees and reinvesting in their operations.
“It is intolerable for local contractors and suppliers to be excluded from significant involvement in mining-related operations. Foreign companies shouldn’t be given preferential treatment over Zambian companies, especially when there is local expertise and capacity,” Mr. Mulenga stated. “Additionally, small and medium-sized businesses are being severely hampered by late payments, which make it hard for them to maintain operations, compensate staff, and reinvest in expansion.”
Mr. Mulenga urged the government to take a more proactive approach to foster trust with local contractors, suppliers, and mining communities. He emphasized that the mining sector must be managed inclusively and responsibly, ensuring that the benefits of Zambia’s mineral wealth are shared equitably among all stakeholders, including local businesses and communities.
“The mining industry must be managed responsibly and inclusively for long-term economic stability and the advancement of the country,” he said. “They could have implemented local content if they so desired, but they have been holding off on doing so for much too long. To solve these issues, the government must act decisively.”
Mr. Mulenga called for several key interventions to address the issues at hand. He suggested that the government enforce local procurement limits to ensure that a significant portion of mining contracts are awarded to Zambian-owned companies. Additionally, he advocated for stringent payment rules that would mandate mining companies to settle payments with local suppliers within 30 days to prevent financial hardship for businesses.
Furthermore, he proposed the establishment of a Supplier Protection Fund or guarantee program to protect local companies from the devastating effects of late payments. He stressed the importance of ensuring that investments in the mining sector translate into visible and tangible benefits for the people of the Copperbelt.
“Investments in mining must yield observable advantages for the people of the Copperbelt,” Mr. Mulenga said. “By implementing laws that guarantee ethical corporate practices, prompt payments, and significant social investment, the government may safeguard nearby companies and communities. Inaction will only increase public annoyance and erode confidence in the Government and investors.”
As the Copperbelt region continues to grapple with these concerns, the call for government intervention grows louder. If action is not taken, the ongoing dissatisfaction from local contractors, suppliers, and communities may lead to further unrest, undermining the long-term sustainability of the mining industry in Zambia.