In a significant step towards strengthening Zambia’s local mining supply chain, four leading commercial banks have partnered with First Quantum Minerals (FQM) to improve access to finance for Zambian businesses seeking to supply goods and services to the country’s mining industry.

The participating financial institutions—ZANACO, ABSA Bank Zambia, FNB Zambia and Stanbic Bank Zambia—have signed a Memorandum of Understanding (MoU) with FQM under the Local Content Financing Initiative, a programme designed to bridge the financing gap that has long prevented many local businesses from participating fully in the mining sector.

The initiative is expected to provide tailored financial solutions to Zambian-owned suppliers and contractors, enabling them to access working capital, purchase equipment, expand operations and successfully execute mining contracts.

Speaking during the signing ceremony in Lusaka, First Quantum Minerals Country Director Anthony Mukutuma said the partnership marks an important milestone in advancing Zambia’s local content agenda and ensuring that more Zambian businesses benefit from the country’s growing mining industry.

Mr. Mukutuma noted that while the Government’s Local Content Regulations have created new opportunities for indigenous businesses, access to affordable financing remains one of the biggest barriers preventing many companies from securing and delivering mining contracts.

He explained that numerous Zambian enterprises possess the technical expertise, skilled workforce and operational capacity to supply equipment, engineering services, transport, construction materials and a wide range of other products required by mining companies. However, many struggle to obtain the capital needed to invest in machinery, purchase inventory, hire additional employees and meet contract obligations.

According to Mr. Mukutuma, unlocking finance for local suppliers is essential if Zambia is to maximise the economic benefits of its mining sector.

“Mining should not only produce copper, create jobs, generate taxes and contribute mineral royalties. It should also stimulate the growth of thousands of competitive local businesses that form part of the mining value chain,” he said.

He further revealed that First Quantum Minerals spent more than US$2 billion on goods and services during the past year, emphasizing that an increasing proportion of that expenditure should be directed towards Zambian-owned companies.

Mr. Mukutuma added that strengthening local participation requires a collaborative approach between mining companies, financial institutions and Government to ensure local businesses have access to affordable and sustainable financing.

“The success of local content depends not only on procurement opportunities but also on the ability of suppliers to finance and execute those opportunities,” he said.

Speaking on behalf of the participating banks, ZANACO Chief Executive Officer Dr. Mukwandi Chibesakunda described the partnership as a strategic intervention that will enable more Zambian businesses to participate meaningfully in the country’s expanding mining industry.

Dr. Chibesakunda said Zambia’s ambition to increase annual copper production to three million metric tonnes by 2031 presents enormous opportunities for local enterprises, provided they are adequately financed to meet the demands of the sector.

She observed that many small and medium-sized enterprises (SMEs) have the capability to supply mining companies but often fail to secure larger contracts because they lack the financial resources needed to purchase equipment, build inventory and manage operational expenses.

Through the Local Content Financing Initiative, she said, ZANACO will provide tailored financing packages aimed at strengthening suppliers’ working capital, supporting equipment acquisition and enabling businesses to fulfil mining contracts efficiently.

Dr. Chibesakunda encouraged local suppliers and contractors to take advantage of the initiative, noting that stronger indigenous businesses will contribute to a more resilient mining industry while creating employment, promoting industrial growth and supporting Zambia’s broader economic development.

The partnership is expected to accelerate the implementation of Zambia’s local content policy by improving the competitiveness of domestic suppliers and increasing their participation in one of the country’s most important economic sectors. Industry stakeholders believe the collaboration between FQM and the four commercial banks could serve as a model for expanding supplier development programmes across Zambia’s mining industry, ultimately ensuring that more of the value created by mining remains within the local economy.