Minister of Mines says the putting in place a local content strategy in the mining industry will spur the growth of other sectors which will result in the achievement of a diversified and resilient economy.
Speaking at the at the stakeholders consultative meeting on local content strategy in Lusaka, Richard Musukwa says the country’s Seventh National Development Plan 7NDP is focused on building a diversified and strong economy of which the mining industry is one of the pillars to drive the agender.
Mr Musukwa says government has prioritized the mining sector to achieve economic diversification and job creation through local content because the sector has the potential to propel growth of other sectors such as manufacturing, trade and agriculture.
“It is important to mention that investors in the mining sector will also benefit from this strategy as they would be able to replace expensive imports with cheaper local products once local supply chains are fully developed,” Mr Musukwa said.
Mr Musukwa said the ministry of mines and minerals development with the support from the African development bank undertook a study to identify low hanging fruits among small and medium enterprises capacities can be strengthened and in turn lead to wealth and job creation for many Zambians.
“this meeting is very important because it will set the tone for local content initiatives in the mining sector covering topical issues such as training, employment of Zambians, manufacturing and local procurement of goods and services to support the mining sector,” He said
“The strategy is meant to enhance local content along the value chain which will benefit Zambians as millions of dollars are spent annually on goods and services which are imported into the country”
Hs said in 2017, a framework for local content policy for the mining sector in Zambia was developed of which some of the recommendations included to create an inventory of available standards and identify industry standard needs for selected mining inputs.
Mr Musukwa also said the framework recommended the development of a costed local content implementation work plan that can be monitored and identify raw materials for manufacturing inputs.
He adds that the frame work also recommended for the identifcation of gaps in the existing legal and policy frameworks that hinder local content in the mining sector and further recommend a framework for local content policy for the mining sector in Zambia.
“These resolutions were researched, articulated and documented for possible development into workable solutions in order to come up with a vibrant local strategy for the sector that will benefit the country,” Mr Musukwa said.
He adds that in line with the African mining vision to which Zambia subscribes, the African mining vision strongly advocates for local content development in the mining sector. the focus should not only be on improving mining regimes by making sure that mining companies pay appropriate taxes, but on integrating mining in the local economy as well. this means that the country should negotiate contracts with mining companies and stipulate local inputs for operations thus the need for a local content strategy.
Mr Musukwa has since commended the Africa Development Bank for supporting the mines ministry to embark on the local content.