LACK OF BUSINESS OPPORTUNITIES FOR LOCAL COMPANIES AT LUMWANA, KALUMBILA AND KANSANSHI MINES SADDENING
…as Local Contractors makes an appeal to President Hakainde Hichilema
Lumwana, Wednesday, July 5, 2023 ( Smart Eagles Correspondent)
More local suppliers have complained over the alleged lack of adequate business opportunities for local companies at Lumwana, Kalumbila and Kansanshi Mines in the North Western Province.
Last month, local Contractor Mundia Lubinda wrote an open letter to President Hakainde Hichilema urging the Government to look at the issues surrounding TradeCorp, a South African company dominating supply of goods to Lumwana Mine.
Mr. Lubinda charged that Lumwana has been giving preference in all supply contracts to TradeCorp at the expense of local suppliers.
In reaction, another local supplier Sitali Mweemba has issued a media statement asking the government to ensure that local entities are not sidelined from business by foreigners at Lumwana Mine.
Mr. Mweemba said President Hakainde Hichilema should intervene directly in the issues at Lumwana to ensure that local businesses are not killed by lack of business opportunities in the mining sector.
He said it was unfortunate that even the contracts of supplying things like bathing soap were being given to foreign firms from South Africa.
“Your Excellency Mr. HH is warmly welcomed to the Copperbelt. Thank you so much for assisting Zambia this time to achieve the debt restructuring target with the Creditor through your efforts and your concerted efforts are appreciated. Allow me to beg you sir, please look into the suppliers complaints while you are on the Copperbelt. We need your assistance in assisting our suppliers with problems related to TradeCorp and white Foreign owned company supremacy at Lumwana,” Mr. Mweemba said.
“Lack of business opportunities for local suppliers, in Zambia, the SMEs industry is dying since there are not enough business prospects. While this is going on, our white Foreign owned businesses are expanding as a result of mining companies’ favouritism. Trading practices that favour a white-owned company over a local supplier are obviously unjust. Let me mention Tradecorp in Lumwana as an example of one such business. This company, sir, is a single source at almost every level, but no one has the guts to voice their displeasure. Should we permit such a thing to occur under your watch, Sir? Your Excellency Sir, South Africa, the DRC, and Tanzania all defend their own businesses and industries. But why is Zambia being exploited? Small and medium-sized businesses (SMEs) continue to be crucial to the nation’s economic progress, as you correctly observed,” he said.
“How can local SMEs succeed when foreign-owned businesses are given 90% of the market share in Lumwana, Kalumbila, and Kansanshi?How many Zambian/local suppliers have profited from S3 at Kansanshi?Your Excellency, you need to pay attention to what is happening in Kansanshi and Lumwana.The mines, sir, are becoming more and more inaccessible to the Local vendors. Nearly all of Lumwana’s supply needs, including repairs, are met by TradeCorp. By utilizing FQM SA to buy commodities for Zambia, Kansanshi is essentially giving Zambian businesses nothing.”
Mr. Mweemba said there is need for the Government to bring sanity in the mining sector.
“Institutions that manage businesses on behalf of the Governments (IDC, ZCCM-IH, etc.) are of relevance to us because they promote the private sector. Even the North Western mines would not lock us out in the manner in which they do if the government had more influence over our mines,” he said.