Foreign firms dodging Zambia’s local content law via shareholding changes – AMSC President

The President of the Association of Mine Suppliers and Contractors (AMSC) in Zambia, Costa Mwaba, has raised concerns over foreign companies allegedly restructuring their shareholding to bypass the recently enacted Statutory Instrument No. 68 (S.I. 68).

The regulation, which came into effect on January 1, 2026, requires both large and small-scale mines to reserve at least 20% of their annual procurement budget for core mining goods and services sourced from local suppliers, a threshold set to increase over time.

Mwaba stated that some companies, previously foreign-owned, have hastily reclassified themselves as Zambian-owned by transferring minority shares to local citizens raising concerns that this change allows them to qualify for contracts and benefits intended for genuinely local businesses under S.I. 68.

“We are urging government agencies, including security wings and the Zambia Revenue Authority (ZRA), to thoroughly vet these companies,” said Mwaba.

“If a company was 100 percent foreign-owned before S.I. 68, and suddenly 25 percent is now held by Zambians, we need to verify that those shares were legitimately purchased, that proper taxes were paid, and that the new shareholders have the financial capacity to make such investments.” Mwaba cited concerns about instances where individuals with limited means, such as domestic workers, may be listed as shareholders with substantial stakes, raising questions about the authenticity of these transactions.