Can local Zambians own mining companies?

Zambia’s mining sector remains the backbone of the country’s economy, driving exports and foreign exchange inflows. Yet, concerns persist among experts that most mining companies are foreign owned, limiting the value Zambia derives from its mineral wealth.

Mining expert Edward Simukonda believes that increasing local ownership in the sector is not only possible, but essential for Zambia’s long-term economic benefits. Speaking to the Zambian Business Times (ZBT), Simukonda emphasized that targeted investments in small-scale miners could significantly enhance local participation and national earnings from mineral exports.

 “Looking at the kind of money allocated through the Constituency Development Fund (CDF), if part of these resources were directed to small-scale miners to mechanize their operations, it would yield positive results,” Simukonda said.

 He noted that small-scale miners already contribute to production, pay taxes, and support the economy, but with greater financial backing, their impact could be much more substantial. Simukonda pointed out that although small-scale miners are making some gains, the lion’s share of mineral export value still goes to foreign-owned companies.

 “We are not even the ones producing these minerals that are being exported, because most of them are foreign owned and government shares are minimal. The value the country is getting is only favourable for now,” he remarked.

He added that empowering local miners with access to capital and technology would position Zambia to derive greater long-term benefits from its mining sector. “Supporting small-scale miners is a direct way to increase local participation in the industry and ensure more profits stay within the country,” Simukonda concluded.

Article by Justine Phiri

Zambia’s mining sector remains the backbone of

Luapula records 60% in CDF uptake

Luapula Chamber of Commerce, Immediate past President, Emmanuel Munsanje has rated the uptake of the Constituency Development Fund (CDF) in Luapula Province at six out of ten despite increased allocations.

 Speaking in an interview with Zambian Business Times – ZBT, Munsanje said while many youths and community members had benefited from empowerment funds, not everyone had fully implemented the projects they proposed.

 A check by the Zambian Business Times – ZBT on the rollout of CDF under the new dawn administration revealed that the fund has expanded from K1.6 million per constituency before 2021 to K25.7 million in 2022, K28.3 million in 2023, K36.1 million in 2024, and now K40 million per constituency in the 2026 national budget.

 The expanded fund has since become one of the government’s flagship decentralization programs targeting community projects, youth and women empowerment, bursaries, skills development, rural infrastructure, and small business financing. However, concerns are now emerging in some provinces over repayment culture, project monitoring and whether the rapid expansion of the fund is translating into sustainable economic transformation at the community level.

He told ZBT that while the uptake of the fund in Luapula had generally been positive, implementation gaps remained visible among some beneficiaries. “It has been okay because a lot of people have been applying and they have been getting the CDF, although others are left out, but generally the trend has been very good,” said Munsanje.

 He added that the empowerment component had helped uplift some youths and cooperatives through livestock and small business projects across the province. “Those who applied for chickens, we see the chickens; those who applied for goats, we see them and many other businesses, so it has really pushed a lot of people from where they were to the current position,” he said.

Meanwhile, Munsanje disclosed that repayment of empowerment loans still faced challenges, partly driven by political perceptions surrounding election cycles, although authorities were reportedly pushing beneficiaries to repay gradually. “People sometimes think maybe the government will change after elections and become reluctant to pay back, but authorities are pressing them, and they are paying little by little,” he said.

Article Phillip Sinkala

Luapula Chamber of Commerce, Immediate past President,

Did you know that Zambia’s USD $6.2 reserves are held in Switzerland?

The Bank of Zambia – BoZ has revealed that the Gross international reserves had increased to a historic high of USD6.5 billion in February, mostly supported by foreign exchange purchases.

 Speaking during the 2026 first quarter media briefing attended by the Zambian Business Times-ZBT, BoZ Governor Dr Denny Kalyalya, however, said Reserves closed the quarter at USD6.2 billion, equivalent to 5.2 months of import cover.

 Dr Kalyalya noted that the observed decline in March 2026 was largely on account of Government payments (USD114.7 million) related to fuel procurement, need by the Bank of Zambia to support the market (USD106.5 million), and Government debt service (USD40.1 million).

The Governor noted that this was USD700 million higher than the December 2025 reserve stock of USD5.5 billion, equivalent to 4.8 months of import cover Meanwhile, when responding to a Zambian Business Times-ZBT, enquiry during the Q4 2025 briefing BoZ Governor clarified the management of the country’s USD reserves, emphasizing that the majority of these assets are held with reputable international financial institutions rather than domestically.

When asked by ZBT about the proportion of US dollar reserves held domestically versus abroad, Governor Kalyalya explained that the majority of Zambia’s reserves are not held within the country but are invested in foreign institutions, primarily in Switzerland.

“The question of where our reserves are held is fundamentally about how money works in the global financial system. In reality, when people refer to having money in the bank, what they actually possess is a record of their claim on the bank, not the physical cash itself. Similarly, for central banks, reserves are not kept in treasuries within the country. Instead, they are invested where they can generate value and returns.” “When we talk about reserves, it’s important to recognize that the actual funds are not physically stored in Zambia.

 Instead, these reserves are invested abroad, where they can generate returns,” Kalyalya noted when responding to a ZBT question. He emphasized that central banks including from others nations, including Zambia’s, typically deposit reserves with international institutions such as the Bank for International Settlements (BIS) in Switzerland.

 Dr Kalyalya explained that these deposits not only safeguard the reserves but also allow them to earn interest, contributing to the country’s financial stability. “When the need arises to use these reserves, we withdraw and allocate them as necessary. This is standard practice among central banks globally. The only asset typically held domestically is gold. But these others, they are invested in different places. There is a bank which is a bank for all central banks in the world. This is the bank for the international settlements in Switzerland and that’s where most of these reserves are held.”

 He added that holding reserves domestically would not yield interest or financial benefits. “If we held all our reserves locally, they would not generate the value or interest we require. By investing them internationally, we ensure that our assets are working for us. This practice is common among countries globally, with gold being the exception, as it is often physically held by central banks.” Dr Kalyalya told ZBT.

 He further clarified that the reserves are readily accessible for use, with withdrawals made as needed to support national financial obligations. He concluded by emphasizing that this approach is designed to maximize the utility and safety of Zambia’s reserves while supporting the country’s economic stability and growth.

Article by Karen Ngulube

The Bank of Zambia – BoZ has