Mulenga Cries For Locals Mine Benefits

Copperbelt-based good governance experts have urged the Government to act urgently and safeguard the interest of local contractors, suppliers, and communities on the Copperbelt amid complaints against mining firms.

Local contractors, suppliers, and communities have been protesting over inadequate business opportunities and jobs in the mining sector.

Mr. Mulenga said complaints that mining firms prefer to deal with foreign entities when it comes to supplying; contracting and employing workers were genuine.

“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. 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,” Mr. Mulenga said.

He said there is a need for the Government to be proactive in order to earn confidence from local contractors, suppliers, and mining communities.

“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. 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. These problems are made worse by the lack of substantial corporate social responsibility (CSR) programs, which deprive mining communities of vital investments in healthcare, education, and infrastructure,” Mr. Mulenga said.

He said the mining industry must be managed responsibly and inclusively for long-term economic stability and the advancement of the country.

“They could have implemented the 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. In order to guarantee that a significant percentage of mining contracts are given to Zambian-owned companies, it should first enforce local procurement limits. Second, in order to avoid financial hardship for nearby companies, stringent payment rules that mandate mining companies complete payments with suppliers within 30 days must be implemented.”

“In order to protect companies from late payments, the government should also set up a Supplier Protection Fund or guarantee program. Investments in mining must yield observable advantages for the people of the Copperbelt. 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,” Mr. Mulenga concluded.