Incentives for local mine suppliers coming
GOVERNMENT has assured mine suppliers of its intent to promote local content in order to curb unfair competition with foreign firms.
Mines and Natural Resources Minister, Richard Musukwa, said his ministry would incentivise local contractors and suppliers through the issuance of a Statutory Instrument (SI).
The SI would give effect to the provisions of the Mines and Minerals Act number 20.
Mr Musukwa said that countrywide consultations were held last month to ensure that the contents of the proposed SI were discussed with all stakeholders.
“A number of stakeholders made valuable submissions that have been incorporated in the draft SI that is being finalised by the Ministry of Justice,” he said.
The Minister said that the SI would not only guide the mines but all the players in the Zambian mining value chain.
He observed that a lot of appeals had been made by the contractors and suppliers for Government’s intervention because procurement was deemed to support foreign firms.
The Minister said that the cry was valid as the report issued last year revealed
SI would not only guide the mines but all the players in the Zambian mining value chain.
that out of the estimated US$4 billion expended per annum in the procurement of goods and services in the mining value chain, less than 10 percent benefited Zambian suppliers.
“I therefore want to ensure all the suppliers of goods services that Government was not just a pro poor one
but has moved to ensure that the proposal under section 20 is implemented to promote the local content strategy of Government,” he said. Mr Musukwa stated that it was Government’s desire to see more goods in the mining sector manufactured in the country to promote industrialisation.