Duma Calls for Policy Shift to Unlock Zambian Business Potential

By Alain Kabinda

Policy Analyst Zondwayo Duma has called for a fundamental shift in Zambia’s economic policies to ensure that local businesses benefit more meaningfully from the country’s abundant natural resources.

Mr Duma says Zambia’s mineral and land wealth has not translated into broad-based prosperity for citizens, raising questions about how the country attracts investment, develops local enterprises and distributes economic opportunities.

In a media statement, Mr Duma said the continued existence of poverty in a resource-rich country required serious reflection on the policy choices that have shaped Zambia’s economic development.

He said Government must move beyond simply attracting external investors and place greater emphasis on building the capacity of Zambian-owned businesses to participate in major economic sectors.

Mr Duma said local content policies should not be limited to encouraging companies to procure goods and services from Zambian suppliers.

He argued that local enterprises must have the financial, technical and productive capacity to compete effectively for contracts generated by major investments, particularly in the mining and natural resource sectors.

“Local content policies must extend beyond procurement to ensure that Zambian companies have the genuine capacity and capabilities to participate,” he said.

According to Mr Duma, this requires deliberate supplier-development programmes that equip local businesses with the skills, technology, financing and standards necessary to compete.

He said Government should therefore take an active role in developing suppliers rather than leaving local companies to compete against established international firms without adequate support.

The policy analyst said Zambia's economic transformation would depend heavily on the growth of strong domestic enterprises capable of participating in regional and international value chains.

He said institutions such as the Zambia Development Agency and the Citizens Economic Empowerment Commission should be refocused to become stronger drivers of industrialisation and local business development.

Mr Duma argued that these institutions should do more than facilitate investment and empowerment programmes, but should help create an environment where Zambian companies can expand, innovate and compete.

He said stronger domestic businesses would allow more economic value to remain in Zambia through employment creation, local procurement, tax revenues, skills development and reinvestment.

Mr Duma said Zambia’s policy framework has historically placed significant emphasis on attracting external investors, while domestic business development has received comparatively less attention.

He said foreign investment remains important to economic development but should be structured in a way that creates opportunities for local enterprises to grow alongside major investors.

Without deliberate intervention, he warned, Zambian businesses risk remaining marginal players in sectors based on the country's own natural resources.

This, he said, could perpetuate an economic model in which Zambia exports its resources while importing many of the goods, technologies and services required to exploit them.

Mr Duma’s concerns come amid continued discussions around how Zambia can extract greater economic value from its natural resources.

He said the country needs policies that encourage value addition, industrial development and stronger domestic supply chains rather than focusing primarily on the extraction and export of raw materials.

For businesses, this could create opportunities across manufacturing, mining supply chains, agriculture, logistics, technology and other supporting industries.

A stronger local supply chain could also reduce the amount of money leaving the country through imports while creating new markets for Zambian producers and service providers.

Mr Duma said Government has a critical role to play in creating the conditions under which local businesses can grow.

This includes ensuring that institutions responsible for investment promotion and economic empowerment are equipped to identify gaps in local industries and help businesses close them.

He said supplier development should be treated as an economic development strategy rather than simply a procurement requirement.

“Government must take an active role in supplier development if local enterprises are to compete effectively,” he said.

Such an approach, he argued, would enable local businesses to move from being small contractors and suppliers to becoming competitive companies capable of serving large domestic and international markets.

Mr Duma warned that failing to address the structural weaknesses affecting local enterprises could continue to limit the impact of Zambia’s natural-resource wealth on ordinary citizens.

He said the disconnect between a country rich in land and minerals and citizens who continue to experience poverty must be urgently addressed.

For the private sector, the issue is ultimately about creating a more inclusive business environment where investment generates opportunities throughout the economy rather than concentrating benefits among a limited number of companies.

Mr Duma said honest dialogue on policy shortcomings was necessary to identify practical solutions and deliver sustainable economic transformation.

He stressed that Zambia needs meaningful reforms rather than promises if it is to achieve inclusive growth and shared prosperity.

The challenge, he said, is not whether Zambia possesses sufficient resources to become prosperous, but whether its economic policies can effectively transform those resources into competitive Zambian businesses, jobs, industrial capacity and lasting wealth for citizens.