**Copperbelt**: Experts in good governance are calling for immediate actions from the Zambian government to protect local contractors and suppliers amid complaints of limited opportunities in the mining sector, highlighting the preferential treatment of foreign companies and significant delays in payments impacting local businesses.
Copperbelt-based experts in good governance have called on the Zambian government to take immediate action to protect the interests of local contractors, suppliers, and communities amidst ongoing complaints related to the mining sector. Reports indicate that local stakeholders have expressed significant dissatisfaction regarding the limited business opportunities and job availability in the industry.
Mr. Mulenga, a representative of these governance experts, articulated the grievances of local contractors and suppliers, asserting that their concerns about mining companies—particularly Mopani and KCM investors—favouring foreign entities over Zambian ones are warranted. Speaking to the Lusaka Times, Mr. Mulenga outlined that “government action is urgently needed in response to the concerns expressed by Copperbelt suppliers, contractors, and other stakeholders.” He elaborated that major mining firms are prioritising foreign companies for contracts and employment, which undermines local businesses and leads to delayed payments of up to 90 to 120 days.
The lack of economic stability stemming from this situation has become a pressing issue, fostering increasing dissatisfaction among the Copperbelt’s population. According to Mr. Mulenga, the government must adopt a proactive approach to regain the confidence of local contractors, suppliers, and mining communities. He stated, “It is intolerable for local contractors and suppliers to be excluded from significant involvement in mining-related operations.” He further stressed that foreign companies should not have preferential treatment over Zambian enterprises, especially considering the availability of local expertise and capacity.
Compounding the situation, Mr. Mulenga noted that small and medium-sized enterprises are being acutely affected by late payments, which hinder their ability to maintain operations, pay employees, and invest in future expansion. The lack of substantial corporate social responsibility (CSR) initiatives by mining companies has also deprived local communities of essential investments in vital sectors such as healthcare, education, and infrastructure.
Mr. Mulenga elaborated on the need for responsible management of the mining industry for the long-term economic stability and development of Zambia. He highlighted that the government has delayed implementing local content policies and stressed the necessity for decisive governmental action to remedy the ongoing issues. “To solve these issues, the government must act decisively,” he asserted.
He recommended several measures, including the enforcement of local procurement thresholds to ensure that a significant portion of mining contracts are awarded to Zambian companies, alongside stringent payment regulations mandating that mining firms settle payments with suppliers within 30 days. To further safeguard businesses against late payments, Mr. Mulenga proposed the establishment of a Supplier Protection Fund or guarantee programme.
In conclusion, he emphasised the need for investments in the mining sector to yield tangible benefits for the Copperbelt communities. He urged the government to enact laws that enforce ethical corporate practices, timely payments, and meaningful social investment, warning that inaction could escalate public frustration and erode trust in both the government and investors in the mining sector.
Source: Noah Wire Services
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