Traditionally, Zambia’s mining sector and the economy has been dominated by copper mining with poor downstream processing activities. Current copper exports are around 820,000 tonnes (www.mining.com 2025) and is expected to reach 3 million tonnes by 2031 under the National three (3) million tonnes Copper Production Strategy (www.mmmd.gov.zm). Zambia is also a major exporter of rough emeralds accounting for over 20% of world’s supply. Apart from existing mines there are also impressive green field investments in the mining sector for copper and other critical minerals like nickel, lithium, rare earths and manganese as well as uranium. Undoubtedly, these huge mine investments will result in a huge increase in the export of raw mineral products. Note that all major copper mining companies do not add any value beyond copper cathodes. Some limited value addition is undertaken by only five companies (namely ZAMEFA, Neelkanth, Uniflex, Doaba and Huasheng) producing wire cables and rods. About five percent of copper cathodes produced are processed into copper rods and cables locally (Kanyanga, K, and Kambani S 2019). Essentially all emeralds are exported as rough material.

Our discussion focuses on Zambia’s readiness to capture maximum benefits from these investments. Government policies have identified value addition and local content strategies as a way to capture these benefits such as Local content Strategy 2018-2022 as well as the 8th National Development Plant 2022-2026. In our context “value addition” means adding value to a mineral raw product by further processing it into the next stage of production with a corresponding increase in value. Value addition activities are anchored on producing finished or intermediate products. For instance, processing of copper cathodes into copper cables and other applications or the cutting and polishing of raw gemstones into jewelry or manganese into various Alloys used to make various products. Studies have indicated enormous increase in value as the product undergoes further processing. However, this requires an existence of a technological and industrial base that is also supported by responsive R&D capabilities. On the other hand, local content implies the extent to which local materials, labor and services are utilized in mining and production of copper and other minerals in Zambia.

What are the challenges to achieving significant benefits from mining?

It is evident that previous policy interventions did not go far enough in their implementation strategies. The country still has a very weak technological and industrial base and hence not in a position to maximize benefits that will arise from the expected increase in mineral production. Local actors in the value chain lack skills and financial capacity to undertake lucrative mining and downstream projects. Note that local content value chain is dominated by foreign interests.

So, what options does Zambia have in the short and long-term to ensure benefits from mining are maximized?
It is apparent that short term measures must focus on strengthening the local content in the sector by ensuring enhanced participation of local companies in the supply chain process. Challenges faced by local suppliers such as funding and technical capabilities must be addressed. With regard to value addition, it is apparent that this cannot be left to the private sector alone. Government must start to invest in R&D that promotes innovations and provide support to local companies with potential in value addition activities. Experience from elsewhere, citing South Korea, clearly demonstrates the key role government can play in promoting both local content and value addition. For instance, in South Korea, the state provided incentives, import protection and promoted industries that had high growth potential (Chansa F, Mubanga N, Mudenda D. Ndulo M, 2019).

In conclusion, Zambia cannot continue on the same trajectory as exporter of raw materials if it is to maximize benefits from its growing and century-old mining industry. The local content and value addition strategies must be pursued with clearly defined expected benefits in terms of local participation and must strengthen its R&D capabilities.

About the Author
The author is a Research Associate at Center for Trade Policy and Development (CTPD) under extractives. He has a PhD in Mineral Economics and lectures in Mineral Economics at the University of Zambia.