“Forced Local Ownership Will Scare Investors, Hurt Economy – Top Economist Warns

Prominent economist Yusuf Dodia has issued a stern warning against renewed calls for local content legislation that would force foreign investors to cede equity stakes to Zambians, describing the proposal as a threat to the country’s economic stability.

Speaking at a business forum in Lusaka, Dodia argued that such measures would undermine investor confidence, trigger capital flight, and derail Zambia’s fragile economic recovery.

“Legislating ownership in a free-market economy is not just misguided,it’s dangerous,” he said. “Zambia abandoned state-controlled business models decades ago for a reason. We cannot now demand foreign investment while simultaneously creating an environment of uncertainty.”
The push for local content laws has gained traction in recent months, with some advocacy groups and trade unions arguing that Zambians are not benefiting enough from foreign-owned enterprises, particularly in mining, agriculture, and retail.

However, analysts caution that similar policies in the past led to economic stagnation. In the 1980s, Zambia’s reliance on parastatal companies resulted in inefficiency, debt accumulation, and eventual collapse, prompting the shift toward liberalization in the 1990s.

“We must learn from history,” Dodia said. “Countries like Nigeria and Malaysia implemented local content rules within heavily regulated economies. Zambia no longer operates that way. Forcing equity transfers now would send entirely the wrong signal to investors.”

With regional competition for foreign direct investment (FDI) intensifying, economists warn that aggressive policy shifts could make Zambia a less attractive destination. Neighboring countries such as Tanzania and Mozambique have been actively streamlining regulations to attract capital.

“Investors have options,” Dodia noted. “If Zambia introduces unpredictable ownership rules, businesses will simply take their money elsewhere. The consequences—job losses, reduced tax revenue, and slower growth would be severe.”

Rather than imposing equity requirements, Dodia proposed a more sustainable approach to economic inclusion:

• Enhancing skills development to prepare Zambians for high-value roles in foreign firms

• Encouraging public-private partnerships that facilitate knowledge and equity transfer without coercion

• Improving the business environment through stable policies, tax incentives, and regulatory clarity

“Empowerment should come from capability, not confiscation,” he said. “If we want Zambians to own more businesses, we must first equip them with the skills and capital to compete.”

The debate has sparked sharp disagreements among citizens. Some argue that foreign firms exploit Zambia’s resources without adequate local benefit, while others fear that aggressive policies could backfire.

“These companies profit from our land and labour Zambians deserve a fair share,” said a trade union representative.

But a Lusaka-based entrepreneur countered: “Ownership without expertise is meaningless. We need partnerships, not forced takeovers.”

As the government weighs its options, Dodia urged policymakers to prioritize long-term stability over short-term political gains.

“The choice is clear: either we embrace policies that attract investment and create jobs, or we chase away capital with populist demands,” he said. “Zambia’s future depends on getting this right.”

With economic recovery still uneven, the decision on local content laws could determine whether Zambia moves forward or repeats the mistakes of the past.

In a shocking turn of events, Zambia’s only CAF-certified stadium, the Levy Mwanawasa Stadium in Ndola, was vandalized by furious Nkana FC fans following a controversial penalty decision in the highly charged Kitwe Derby against Power Dynamos. The incident has sparked outrage among football authorities, stakeholders, and fans, raising concerns over hooliganism and stadium security in Zambian football.

The heated match between Nkana FC and Power Dynamos took a dramatic turn late in the game when the referee awarded a penalty to Power Dynamos after an alleged foul in the box. Nkana supporters vehemently disputed the decision, claiming it was unjust and cost their team a crucial result.

As tensions boiled over, a section of Nkana fans began hurling objects onto the pitch, disrupting play. After the final whistle, the situation escalated, with enraged supporters damaging stadium seats, breaking barriers, and smashing advertising boards. Security personnel struggled to contain the chaos as police were forced to intervene, firing tear gas to disperse the crowd.

The Levy Mwanawasa Stadium, Zambia’s only venue certified by the Confederation of African Football (CAF) to host high-profile international matches, suffered significant damage. The vandalism has raised fears over the country’s ability to host future continental games, including CAF Champions League and Africa Cup of Nations qualifiers.

Football Association of Zambia (FAZ) president Andrew Kamanga condemned the violence, stating, “Such acts of hooliganism have no place in football. We will work with law enforcement to identify and punish those responsible.”

Nkana FC, one of Zambia’s most decorated clubs, could face severe penalties, including fines, a points deduction, or even playing behind closed doors. CAF regulations are strict regarding stadium safety, and further incidents could jeopardize Zambia’s standing in African football.

While some fans defended the protests as passion for the game, others criticized the destruction, emphasizing that such behavior tarnishes Zambian football’s reputation. Many have called for stricter security measures and better conflict resolution systems to prevent future outbreaks of violence.

As investigations continue, Zambian football authorities must address fan behavior and stadium security to prevent a repeat of such incidents. With the Levy Mwanawasa Stadium’s status at stake, the fallout from this derby could have long-lasting implications for the country’s football landscape.

For now, the focus shifts to repairs, disciplinary actions, and restoring order—ensuring that Zambia’s premier football venue remains a safe and respected ground for the beautiful game.

The Centre for Trade Policy and Development (CTPD) is concerned about the potential negative spillover effects on Zambia’s economy resulting from the ongoing trade war between China and the United States of America (USA). The two countries are
locked in a trade war that has seen both sides impose tariffs of over 100 percent on goods imported from the other— potentially causing the growth of the Chinese economy to slow down. This, in turn, may negatively impact Zambia’s economy which trades in
significant volumes with China.

The USA is the third largest importer of Chinese commodities (importing 14.8 per cent of China’s $3.4 trillion worth of global export in 2023). The US imports major commodities from China include electric batteries, heaters, motor vehicle parts and accessories,broadcasting equipment and computers. China in turn is one of Zambia’s biggest trading partners, only second from Switzerland. In 2024, Zambia’s exports to China stood at 21 percent or USD 2.4 billion. The majority of products that Zambia exports to China are mineral products that include copper, Sulphur and earth stones.

CTPD is concerned that as the trade war rages on, both China and the US will experience a significant reduction in trade volumes consequently hurting the two economies. Consequently, this can affect Zambia exports to China in several ways.
Firstly, China may directly reduce imports of copper and other minerals which it uses as a raw material in the production of motor vehicles and other electronics. Secondly, a sluggish growth in China’s economy has consequences that spill to its trading partners in ways that may not be easily predicted. Zambia’s narrow export profile may further expose it to higher risks. Moreover, the country’s exports is largely composed of raw materials of which over 70 percent are minerals. If China reduces demand for copper, prices will go down and Zambia’s mining sector will be hit hard.

CTPD calls on government to vigorously pursue policies that priorities value addition to minerals as well as agricultural commodities in order to broaden, not only the scope of goods but also the demand for Zambia’s products. CTPD further calls on the government to provide support to farmers and other stakeholders looking to trade through the Africa Continental Free Trade Agreement as this will provide an alternative avenue for foreign exchange earnings.

Issued by:
Barnabas Mwale (Mr)
Trade and Investment Researcher: Centre for Trade Policy and Development
(CTPD)

The Government of the Republic of Zambia has taken note of the recent public advisory issued by the United States Embassy in Lusaka regarding Zambia’s Cyber Security Act No. 3 of 2025.

While we appreciate the Embassy’s commitment to informing its citizens, we find it necessary to clarify misinterpretations presented in the advisory and to affirm Zambia’s continued commitment to rule of law, respect for privacy rights, and upholding of good governance principles.

The Cyber Security Act is intended to enhance the country’s cybersecurity framework in order to safeguard citizens, institutions, and the economy from growing cyber threats. It repeals and replaces the Cyber Security and Cyber Crimes Act No. 2 of 2021 and aligns with international best practices, including the Budapest Convention and the African Union’s Malabo Convention. Specifically, the objectives of the Cyber Security Act include:

• (a) Protecting critical information infrastructure essential to national security, economic stability, and public safety;
• (b) Establishing a coordinated framework for lawful interception under judicial oversight; and
• (c) Promoting data protection, cyber resilience, and lawful use of digital technologies.

Contrary to the advisory, the Act does not mandate anyone to proactively intercept any electronic communications and transmit such communication to the government. Section 37 of the Act explicitly prohibits random monitoring. Lawful interception under Section 29 can only be effected upon obtaining an ex parte order from a High Court judge similar to provisions of the United States’ Electronic Communications Privacy Act of 1986.

Further, any emergency interceptions under Section 30 must be followed by written judicial justification within 48 hours, and improper use of intercepted data carries serious criminal penalties.

Safeguards for Individual Rights

The Act incorporates robust safeguards to protect individual rights:

• (a) Privileged communications such as attorney-client and journalist sources, retain legal protection under Section 36;
• (b) The use or disclosure of intercepted data outside legal authority is punishable by up to 10 years’ imprisonment under Section 34;
• (c) Geolocation tracking without consent is prohibited under Section 31.

These provisions reflect Zambia’s adherence to due process, proportionality, and necessity in digital governance.

Standard Global Practices

Zambia’s requirement for electronic service providers to maintain lawful interception capabilities under Sections 39–40 of the Act is standard practice globally, including in the United States under laws such as section 103 of the Communications Assistance for Law Enforcement Act of 1994. These capabilities are strictly regulated, activated only upon judicial authorization, and are necessary to counter threats such as terrorism, money laundering, and cyber-enabled fraud.

Continued Commitment to Cooperation and Digital Rights

Zambia continues to uphold its international obligations and actively cooperates on transnational cybercrime under mutual legal assistance frameworks. We welcome partnerships and constructive dialogue with all diplomatic missions, including the U.S., on cybersecurity, digital rights, and capacity building.

The Government remains committed to promoting a safe, open, and democratic digital environment that supports innovation while safeguarding national security and civil liberties. We encourage all residents and visitors to read the law in full context and to engage constructively with our institutions for clarification.

For any further concerns and clarifications, the Ministry of Foreign Affairs and International Cooperation remains open for engagement.

Issued by:
Ministry of Foreign Affairs and International Cooperation
Republic of Zambia

A Digital Shield, Not a Sword: Understanding Zambia’s Cyber Law Beyond the Noise

By  Moses Joski Tembo

“The Cyber Security and Cyber Crimes Act is not about silencing citizens but protecting them. It does not empower mass surveillance; it enforces legal accountability. It does not hinder freedom; it defends it in a space that, until now, has remained dangerously unregulated.

Zambia is not walking backward but building digital resilience for its people, businesses, and democracy. So let’s rise above sensationalism and embrace responsibility. Your freedom is still intact. Your rights are still protected. And now, your digital space is finally defended.”

As Zambia steps confidently into a new era of digital advancement, the recently enacted Cyber Security and Cyber Crimes Act has become the subject of intense public debate, some of it misinformed, much of it politicized. While online narratives have painted the law as a tool for surveillance, the Government has issued a precise and measured response to restore factual clarity and public confidence.

Hon. Mulambo Haimbe, S.C., M.P., Minister of Foreign Affairs and International Cooperation states, “The Cyber Security law is not designed to infringe on the privacy of Zambian citizens or international visitors. It is intended to secure the country’s digital environment, enabling safety and innovation to thrive side by side.” This statement is more than a diplomatic reassurance; it reflects a carefully constructed legal framework to protect Zambians from growing online threats without compromising their constitutional freedoms.

At the heart of the law lies a strong commitment to due process. A court must authorize communication interception, leaving no room for arbitrary or unchecked surveillance. Sections 36 and 37 of the Act explicitly reinforce these protections, safeguarding privileged communications and prohibiting random monitoring. These provisions are not token gestures; they are legal guarantees that uphold the sanctity of privacy in a digital age.

The law further aligns with international standards of digital rights. It was drafted to address global best practices and incorporate mechanisms for accountability. Citizens who feel aggrieved by the misuse of the law have access to legal remedies, ensuring transparency and redress. The classification of “critical information,” often misunderstood, is clearly defined within national security protocols and applied only by authorised institutions under legal oversight.

Understanding the Act also requires acknowledging its practical benefits. Zambia, like many other countries, faces escalating cyber threats, from online child exploitation to phishing scams, identity theft, and cross-border digital crime. This law equips law enforcement with modern tools to respond to these challenges effectively and lawfully. Highly trained digital specialists, operating under court directives, will be able to track and dismantle cybercrime networks that exploit gaps in the current legal framework.

Moreover, the Act extends national protection into the digital realm. It reinforces Zambia’s ability to defend its citizens and institutions against cyber incursions, much like the military defends territorial borders. In doing so, it offers continuity of security in a landscape that has evolved far beyond the physical.

For the Zambian public, the question is not whether we need laws in the digital space but whether we are willing to allow criminals, extremists, and foreign actors to exploit our vulnerabilities unchecked. This legislation is not a retreat from freedom but a shield for progress, designed to preserve liberty and safety.

As the government moves forward with implementation, the call is for dialogue rooted in facts, not fear. The Cyber Security and Cyber Crimes Act represents a nation adapting to the realities of the 21st century. It is determined to grow, innovate, and defend its people online with the same strength it does on land, air, and sea.

As I conclude, my fellow Zambians, let us develop the discipline to read, research, and genuinely understand before we react. In a digital age, misinformation is as dangerous as cybercrime itself. Let us not be swayed by those who weaponize public sentiment simply because they carry political grievances. There is a time for politicking, and there is a time for serious national reflection, and this moment demands the latter.

The Cyber Security and Cyber Crimes Act is not about silencing citizens but protecting them. It does not empower mass surveillance; it enforces legal accountability. It does not hinder freedom; it defends it in a space that, until now, has remained dangerously unregulated.

Zambia is not walking backward but building digital resilience for its people, businesses, and democracy. So let’s rise above sensationalism and embrace responsibility. Your freedom is still intact. Your rights are still protected. And now, your digital space is finally defended.

#CyberSafeZambia #KnowTheLaw #ProtectZambiaOnline #DigitalJustice #CyberShield #ZambiaSecured

President Hichilema Pardons GBM on Medical Grounds — A Move of Compassion, Not Politics

President Hakainde Hichilema has released former Defence Minister Geoffrey Bwalya Mwamba (GBM) from prison on medical grounds. GBM is among 13 inmates granted freedom under the presidential prerogative of mercy, a constitutional power that allows the Head of State to pardon or commute sentences based on various factors, including serious health conditions.

But beyond the legalities, this moment reveals something far greater it shows the true character of President Hichilema.

While the opposition rushed to the media, making noise and politicizing GBM’s health for their own gain, the President remained silent and focused. Unknown to many, he had already made his decision. He chose not to announce it prematurely, instead allowing due process to take its course. Like a seasoned and strategic leader, he let his actions speak louder than words, doing what was right, not what was politically convenient.

This release is not just about one man’s medical condition. It’s a message to the nation: that under President Hichilema, Zambia is governed with maturity, compassion, and deep wisdom. This is not the politics of hate, pain, or vengeance that we have become accustomed to. This is leadership that sees beyond party lines, that values human dignity even for those who once stood on the opposite side.

In a political climate often stained by bitterness and noise, the President’s quiet, calculated, and compassionate decision stands tall. The release of GBM, timed to coincide with his recovery, reflects a leadership style rooted in humanity not media pressure, not opposition theatrics.

The opposition, who are quick to speak ill and mislead the public, should take a moment to reflect. While they thrive on creating division and doubt, President Hichilema has proven yet again that real leadership is about unity, foresight, and love for country.

This may not be the last gesture of compassion from the President. And if this act is anything to go by, there’s more to expect from a leader who continues to redefine what it means to govern with heart and intelligence.

Global credit rating agency Moody’s Investors Service has revised Zambia’s economic outlook from stable to positive, signaling growing confidence in the country’s fiscal and economic recovery. The upgrade reflects sustained progress in reducing government debt, alongside stronger economic growth and continued fiscal reforms.

Debt Decline and Fiscal Consolidation Drive Optimism
In its latest assessment, Moody’s highlighted a steady reduction in Zambia’s government debt burden, attributing the improvement to disciplined fiscal policies and economic expansion.

“The positive outlook reflects Zambia’s declining debt levels, supported by stronger GDP growth and ongoing fiscal consolidation,” the agency stated. “The government has implemented credible measures to stabilize public finances, and we expect these efforts to persist, further enhancing debt sustainability.”

Reforms and Economic Recovery Gain Traction
Moody’s noted that Zambia’s economic reforms—including debt restructuring agreements and enhanced revenue mobilization—have contributed to improved fiscal stability. The country’s real GDP growth, projected at above 5% in 2025, has also bolstered investor confidence.

The rating agency’s upgrade follows Zambia’s recent successful debt restructuring under the G20 Common Framework, which has eased repayment pressures and freed up resources for critical public investments.

Implications for Zambia’s Financial Markets
A positive outlook from Moody’s is a key indicator for international investors, potentially lowering borrowing costs and attracting foreign capital. If sustained, this trajectory could lead to a future credit rating upgrade, further improving Zambia’s access to global financial markets.

Zambian authorities have welcomed the revised outlook, viewing it as validation of ongoing economic reforms.

While the outlook revision is a positive signal, Moody’s emphasized that continued debt management, structural reforms, and stable growth will be crucial for Zambia to secure a full ratings upgrade in the future.

Analysts suggest that further progress in diversifying the economy, improving governance, and sustaining investor confidence will be key to consolidating these gains.