By Mercy Chewe
A consortium of local suppliers in the Copperbelt and Northwestern Provinces has joined various stakeholders calling for the quick enactment of the local content law in Zambia in a bid to enhance national development.
Local content requirements are a type of trade protection mechanism that depends on the law to create requirements for international companies and forces them to produce or rent a certain amount of goods and services domestically.
Consortium Secretary Kazhila Samukonga said the local content law when in enacted will lead to job creation, boost the domestic private sector, facilitate technology transfer and build a competitive local workforce.
Mr. Samukonga declared that it will be important to enact a local content law before operations like those of KCM (Konkola Copper Mines) are revived.
“It will be important to enact a local content law before operations like those of KCM (Konkola Copper Mines, presumably) commence. This approach aims will ensure that local communities benefit more directly from the economic activities and investments of such operations. In short more Zambian SMEs should be given the chance to grow. Here are some reasons why enacting a local content law as soon as possible can be beneficial: Clarity and Preparation: Enacting the law beforehand provides clarity to both investors and local stakeholders about the expectations and requirements regarding local participation. It allows businesses to plan and prepare accordingly, potentially avoiding conflicts or misunderstandings later,” he said.
Mr. Samukonga highlighted maximizing local benefits, setting of standards and utilization opportunities as the other benefits of the pending law which is still in draft form.
“Maximizing Local Benefits: By establishing local content requirements early on, the government can maximize the opportunities for local businesses, labor, and suppliers to participate in the supply chain and benefit economically from the project. This can lead to job creation, skills development, and overall economic growth in the region. Setting a Standard: Having a local content law in place before operations begin sets a standard for future projects and investments. It demonstrates the government’s commitment to ensuring that natural resources and economic activities contribute to sustainable development and local prosperity. Avoiding Missed Opportunities: Delaying the enactment of local content laws until after operations start may result in missed opportunities to negotiate favorable terms for local participation. It could also lead to a situation where initial contracts and agreements are already in place, potentially limiting the scope for local involvement,” he stated.
Mr. Samukonga said the government should balance the interest of foreign investors and that of locals for sustainable development and long-term success.
“We do know the FQML is opposed to the introduction of the law. The question is, what are they scared of, if this will benefit both the locals and them? Once enacted, effective implementation and monitoring mechanisms are crucial to ensure compliance and maximize the benefits for local communities. This may involve capacity building, transparency in procurement processes, and regular evaluation of the law’s impact. Again, do not get the locals wrong, we also want the government to balance the interest of investors and that of locals for sustainable development and long-term success,” he said.
