Zambia Tells Copper Miners to Buy Local While Courting UAE Investors
Zambia · MINING
Key Facts
- —The country Zambia is a landlocked southern African nation of about 22 million people. Its economy, about US$29 billion in 2025, is smaller than Iceland’s and runs on copper.
- —Why it matters Zambia is Africa’s second-largest copper producer after Congo. Copper feeds power grids and electric vehicles, so the rules on who supplies its mines matter to global investors.
- —Why now President Hakainde Hichilema won a second term in the 13 August election and is on his first foreign trip since, courting investors in the United Arab Emirates.
- —What happened On Monday, 28 September, in Abu Dhabi, he told the head of Mopani Copper Mines’ majority owner that miners must fully apply the local content rules.
- —The numbers In force since 1 January 2026, the rules reserve all non-core mine services for local firms and set a 20 percent local share of core procurement, rising to 40 percent.
- —What it means for you Foreign firms selling catering, security or haulage to Zambian mines lose that market; mine investors must budget for more local sourcing and supplier training.
- —Still open The mines ministry reports about 90 percent compliance, but no audit results are public and it is unclear how mines will reach the 40 percent target.
On his first trip abroad since re-election, Zambia's president told a Gulf mine owner that copper firms must buy more locally.
Zambia, a southern African country of about 22 million people, lives off copper. On Monday its president told a major foreign mine owner that the industry must fully honour the local content law.
President Hakainde Hichilema made the point in Abu Dhabi, capital of the United Arab Emirates (UAE). He met Ali Rashed Alrashdi, chief executive of International Resources Holding (IRH), which controls Mopani Copper Mines.
What happened in Abu Dhabi
Hichilema arrived in Abu Dhabi on Monday, 28 September, for a two-day working visit. He came at the invitation of the UAE president, Sheikh Mohamed bin Zayed Al Nahyan.
It is his first foreign trip since the 13 August general election gave him a second term. He was sworn in on 1 September after a vote the opposition has challenged.
IRH, a company based in Abu Dhabi, bought 51 percent of Mopani in March 2024. ZCCM-IH, Zambia's state mining investment company, holds the other 49 percent.
The partnership is under strain. In a letter dated 18 September, reported by Bloomberg on the day of the meeting, ZCCM-IH accused IRH's Delta Mining unit of failing to provide agreed equity funding, letting Mopani take on debt without approval and missing output targets. IRH said it was addressing the issues through normal shareholder talks.
After the meeting, Hichilema said both sides stressed that mining companies must give full effect to Zambia's local content rules. The aim, he said, is that more Zambians take part in and benefit from mining.
“Raising copper production to three million tonnes a year is central to our Grow Zambia agenda,” he wrote on his official Facebook page. “Mopani Copper Mines is key to reaching that target.”
The visit programme also includes talks with Sheikh Mohamed, the signing of memoranda of understanding and a Zambia-UAE business and investment forum. Mining and mineral processing are listed among the priority areas.
What the local content rules require
The rules are set out in Statutory Instrument No. 68 of 2025, a regulation issued under Zambia's mining law. They took effect on 1 January 2026.
Mines must source a rising share of core goods and services from Zambian-owned and citizen-empowered companies. The share starts at 20 percent and rises to 40 percent.
All non-core services, from catering to security and haulage, are reserved for local companies. Zambian bidders also get a price preference when contracts are evaluated.
Mining firms must also invest in developing future local suppliers. Companies had to file their first compliance reports with the Ministry of Mines and Minerals Development by 15 April 2026.
How the mines are responding
The ministry says uptake has been encouraging. Its permanent secretary, Hapenga Kabeta, told the state-owned Zambia Daily Mail this month that compliance stood at about 90 percent.
Kabeta said Konkola Copper Mines and First Quantum Minerals, a Canadian miner, have set up departments dedicated to local content. He also acknowledged “teething challenges” that the industry and government are still working through.
In June, Clayson Hamasaka, the presidency's communications chief, said First Quantum spent US$2.14 billion on Zambian suppliers in 2025. He said Barrick's Lumwana mine sourced 73 percent of its purchases locally in the first half of 2025.
Those figures come from the government and the companies. They have not been checked by an independent audit.
Why copper makes this a global story
Zambia is Africa's second-largest copper producer after the Democratic Republic of Congo. Copper is essential for power grids, electric vehicles and renewable energy.
That draws investors from China, the West and the Gulf, all competing for access to the Copperbelt. Local content rules shape how each of them structures its Zambian operations.
Hichilema's target of three million tonnes a year would require large new investment. His message in Abu Dhabi was that more output must also mean more contracts for Zambian businesses.
Zambia is part of a wider African push to keep mineral value at home, as covered in Africa: The New Scramble. Other states use export limits, local processing rules and procurement quotas.
Who gains and who loses
Zambian suppliers of catering, security, haulage and other non-core services gain a protected market. Foreign contractors that held those contracts lose that business.
Mine owners face higher compliance costs and must build supplier-development programmes. Several offer vendor financing to help local suppliers deliver contracts, according to the consultancy PwC.
Sokwani Chilembo, head of the Zambia Chamber of Mines, has called for balance. He wants tighter rules applied with enough care to keep mining “attractive, stable and competitive.”
Martin Lokanc, a senior mining specialist at the World Bank, has warned of a different risk. Quotas can reward local “middlemen” who simply import goods without adding value.
What to watch next
The first test is whether mines meet the 20 percent core procurement share this year. Published audit results would show whether the 90 percent compliance figure holds up.
Investors should watch for any easing of the rules if local suppliers cannot meet demand. Kabeta has already urged Zambian firms to compete on quality, price and timely delivery.
The outcome of the UAE visit also matters. Any deals signed in Abu Dhabi will show how Gulf money fits Zambia's demand for local participation.
Frequently Asked Questions
What is Zambia’s local content law for mining?
It is Statutory Instrument No. 68 of 2025, a set of regulations in force since 1 January 2026. It sets local procurement targets for mines and reserves non-core services for Zambian firms.
How much must mines buy from Zambian companies?
The rules start at 20 percent of core mining goods and services from local companies, rising to 40 percent. Non-core services such as catering, security and haulage are fully reserved for local firms.
Why did Hichilema raise the issue in Abu Dhabi?
Mopani Copper Mines is 51 percent owned by International Resources Holding, an Abu Dhabi company. Hichilema told its chief executive that miners must fully apply the local content law as output rises.
Does the law affect foreign investors?
The rules do not bar foreign mine owners, but they must source more from Zambian suppliers and fund supplier development. Foreign contractors in reserved non-core services lose that business.
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