President Hakainde Hichilema has reaffirmed the government’s commitment to ensuring that Zambians play a greater role in the country’s mining industry by targeting 40% local participation through the implementation of strengthened Local Content Regulations.

The reforms are designed to increase opportunities for Zambian-owned businesses, contractors and service providers while ensuring that a larger share of the economic value generated by mining remains within the country.

Under the new regulations, mining companies are required to progressively increase procurement from local suppliers. The framework begins with a minimum local procurement threshold of 20%, rising to 25% after one year, 35% after two years, and ultimately at least 40% within five years.

The policy also introduces a procurement preference for qualifying Zambian-owned businesses and encourages mining companies to invest in supplier development programmes that improve the competitiveness of local enterprises.

Speaking on the reforms, President Hichilema said the objective extends beyond increasing employment. The government wants mining communities and local entrepreneurs to participate more meaningfully across the mining value chain through contracts, engineering services, logistics, manufacturing, construction and other supporting industries. The policy seeks to ensure that Zambia’s mineral wealth creates sustainable businesses and economic opportunities for citizens alongside increased mineral production.

The reforms form part of a wider strategy to modernise Zambia’s mining sector as the country works toward increasing annual copper production to three million tonnes. Alongside investment incentives, geological surveys, railway expansion and improvements to the investment climate, local content has become a central pillar of the government’s mining policy. Officials argue that stronger domestic participation will help create resilient local supply chains while reducing dependence on imported goods and services.

Industry stakeholders have generally welcomed the policy but acknowledge that achieving the 40% target will require significant investment in local supplier capacity. Mining companies will need reliable local partners capable of meeting international standards for quality, safety, pricing and delivery. At the same time, local businesses will be expected to strengthen governance, technical expertise and financial capacity to compete for larger contracts.

If effectively implemented, the Local Content Regulations could reshape Zambia’s mining economy by ensuring that growth in copper production translates into broader economic development. Beyond increasing exports, the policy has the potential to stimulate manufacturing, engineering, logistics and professional services, creating a stronger industrial base that supports long-term economic diversification while making Zambia’s mining success more inclusive.