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The multiplier effect: How KCM’s growth is lifting Zambian businesses

As Konkola Copper Mines expands, the clearest test of whether that growth reaches ordinary Zambians is what happens to the businesses that supply it. Mining companies are often judged on tonnes and dollars. But for the hundreds of small and medium businesses that supply Konkola…

The multiplier effect: How KCM’s growth is lifting Zambian businesses

Picture: Zambia Monitor

As Konkola Copper Mines expands, the clearest test of whether that growth reaches ordinary Zambians is what happens to the businesses that supply it.

Mining companies are often judged on tonnes and dollars. But for the hundreds of small and medium businesses that supply Konkola Copper Mines, the more meaningful measure is simpler: are they getting more work, and are they being paid on time.

By that measure, the signs are encouraging.

As KCM’s procurement activity has increased in step with its production plans, hundreds of Zambian suppliers, contractors and service providers have benefited from expanded business opportunities and more reliable payment cycles. KCM estimates that this increased supplier activity has already supported approximately 1,200 additional jobs across the broader economy, jobs that exist outside the mine gate but depend directly on what happens inside it.

Costa Mwaba, President of the Association of Mine Suppliers and Contractors, says the effect runs through the entire value chain.

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“Mining has one of the strongest multiplier effects in the economy. When a major operation like KCM begins investing consistently again, suppliers are able to employ more people, acquire equipment and expand their businesses. The positive impact extends well beyond the mine itself,” Mwaba said.

This is the growth model President Hichilema described in his address to the nation: a larger economy that creates more for every Zambian to share. For a transport contractor in Chililabombwe or a hardware supplier in Chingola, that growth does not arrive as an abstract statistic. It arrives as a bigger order, a longer contract or a payment that lands on time.

It is also, in a practical sense, the fastest route from a mine site to a Zambian household. A supplier with a signed contract can plan around a payment schedule. A business owner who can plan has the confidence to hire, to invest in a second truck or a bigger workshop, and to take on more staff of their own.

That confidence compounds. Every additional supplier contract supports jobs that never appear on KCM’s own payroll but exist entirely because of its production. It is a market for a local entrepreneur, capital for a growing business and, in the President’s own words, opportunity for a woman in business.

As KCM works toward its share of the national three million tonne target, its procurement book is becoming one of the more visible ways that target turns into opportunity for Zambian owned businesses, long before the copper itself leaves the country.

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Source: Zambia Monitor — Read more

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