Zambia: Upstream linkages— Limits to the effectiveness in government supply-side interventions

The document examines Zambia's efforts to leverage local content in its mining industry through policies like the Mines and Minerals Development Act and the Citizens Economic Empowerment Act. It highlights a critical gap: while service companies are clearly defined, there is no specific definition of the value-added required for goods to be considered 'made in Zambia'. This omission, combined with a lack of specific targets and quotas, has hindered enforcement and compliance. Consequently, despite various supplier development initiatives such as the IFC Copperbelt SME Suppliers Development Program and the Zambia Mining Local Content Initiative, up to 95% of goods and services locally procured by the mining industry remain imported.

• Zambia lacks a precise definition for the level of local value-added required for goods to be designated as 'made in Zambia', which creates significant obstacles for the enforcement and compliance of procurement regulations.
• Despite legal mandates requiring mining license holders to prefer Zambian products and contractors, the absence of specific quotas and targets makes these regulations difficult to enforce, potentially due to the political influence of importing and mining interests.
• Government supply-side interventions and supplier development programs have seen limited success in increasing local procurement, with data indicating that as much as 95% of goods and services procured locally by the mining industry are actually imported.
• Zambia has implemented several initiatives to boost local capacity, including the Zambia Mining Local Content Initiative (ZMLCI) launched in 2012 and the IFC Copperbelt SME Suppliers Development Program (CSSDP) from 2007–2010, the latter of which provided business diagnostics, financing proposals, and training for SMEs.

APA

Nickerson, E., & Klimova, E. (2018). Zambia: Upstream linkages— Limits to the effectiveness in government supply-side interventions. International Institute for Sustainable Development. https://www.iisd.org/sites/default/files/publications/case-study-zambia-upstream-linkages.pdf

Chicago

Nickerson, Emily, and Eva Klimova. Zambia: Upstream linkages— Limits to the effectiveness in government supply-side interventions. International Institute for Sustainable Development, 2018. https://www.iisd.org/sites/default/files/publications/case-study-zambia-upstream-linkages.pdf.

Wikipedia

{{cite report |last1=Nickerson |first1=Emily |last2=Klimova |first2=Eva |title=Zambia: Upstream linkages— Limits to the effectiveness in government supply-side interventions |publisher=International Institute for Sustainable Development |date=2018 |url=https://www.iisd.org/sites/default/files/publications/case-study-zambia-upstream-linkages.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nickerson2018zambia, author = {Nickerson, Emily and Klimova, Eva}, title = {{Zambia: Upstream linkages— Limits to the effectiveness in government supply-side interventions}}, institution = {International Institute for Sustainable Development}, year = {2018}, url = {https://www.iisd.org/sites/default/files/publications/case-study-zambia-upstream-linkages.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }