SI on local content not progressive-FQML
Written by newsroom on May 8, 2021
First Quantum Minerals FQML has charged that the Statutory Instrument on Local Content ,is not a progressive piece of legislation, as it forces mining companies to channel up to 50% of foreign direct investment to local suppliers.
Speaking during the Mining Local Content Conference sponsored by Prospero Zambia and the Zambia Association of Manufacturers in Kitwe on Thursday, FQM Head of Government Affairs, John Gladstone argues that with such legislation in place, business activities of foreign investors are massively constrained and are forced to invest in areas that do not deliver.
Mr. Gladstone says that Zambians should not be patronized by convincing them that foreign investors will have no choice but to invest in them as the only way Zambia will develop is through investment under an enabling business environment.
He has since implored Government not to force economic development from investment through legislation as it will only scare off investors who are interested in making massive investments in the country.
However, Association of Mine Suppliers and Contractors President Augustine Mulenga, stated that the Mines and Minerals Development Act has the right provisions in Section 20 but lacks means of regulation hence the need for the SI on local Content to strengthen it.
He adds that the Statute should be supported, so that local suppliers and contractors are well positioned in both the country and the region.
And Ministry of Mines Director on Special Assignment Rodney Kalota says; government wants to give consensus to the SI on local content as it levels the playing field for Zambian suppliers and contractors in the mining sector.
He added that it was sad that multinational companies had no problem applying local content requirements in developed countries but are against the same being done in Zambia.