The Center for Trade Policy and Development – CTPD has noted the need by government to create a policy framework and conducive environment for small scale miners and energy sector players to thrive as they play a critical role in contributing to the overall national economic development.
CTPD Executive Director Isaac Mwaipopo says small scale miners play a critical role to the country’s development hence the need to help revamp their businesses in the mining sector by creating strong linkages.
Speaking at the close of the Zambia International Mining and Energy Forum – ZIMEF in Lusaka on June 14th, 2019, Mwaipopo said most of the challenges that the country is facing including the creation of jobs and widening of the tax base can be realized through effective linkages and the contribution of [local businesses such as] small scale miners, suppliers and contractors.
He revealed that through surveys undertaken by the center, small scale miners are lacking information on how the sector operates and take advantage of existing support hence the need to improve the flow of information to enable them benefit from already existing financial support.
Speaking at the same event, an expert in oil and gas T Chikwanda also noted the need to strengthen the bond between bigger mining players and small scale miners. Chikwanda said there is a weak linkage between the bigger and multinational mining players and local SME’s hence the need create capacity development and skill transfer.
And Ministry of Trade Director for Industry John Mulongoti said the local businesses which is the majority of SME sector is important in contributing to the country’s economy as it has the majority of entrepreneurs. He said government has invested in SME’s by forming corporatives to support them in services delivery, trainings and skill enhancement and in improving their businesses.
‘Government has been working with SME’s by improving their business and work culture and through the trainings that they undergo, some of them have started getting contracts from the mining houses’ he said. He however did not name the ones that had gotten contracts.
Zambia’s Mining, oil and gas sectors are dominated by big multinational players with no clear policy on local companies and SME’s linkages to ensure that some values and skills transfers are attained. This remains a challenge as there is no regulatory requirements for local content or even guidance for say x% of the procurement to be done by local Zambian businesses.
