The Zambia Consolidated Copper Mines Investments Holdings (ZCCM IH) Board has hailed the Memorandum of Understanding (MoU) the firm has clinched with the Zambia National Commercial Bank (ZANACO).
ZCCM-IH and Zanaco on Wednesday signed the MoU in Kitwe aimed at fostering and providing growth opportunities that contribute to the participation of small and medium-sized enterprises (SMEs) in the mining supply value chain in Zambia.
The MoU further provides a framework of cooperation and collaboration between ZCCM IH and ZANACO to identify opportunities for increased local participation in the mining sector.
ZCCM IH Board Chairperson Dolika Banda said the MoU is a product of conversations arising from the mining indaba held a fortnight ago in South Africa on the need to foster partnerships that provide support to see a thriving mining industry in Zambia.
Ms. Banda said the cooperation between ZCCM IH and ZANACO will help identify opportunities for increased local participation in the mining sector.
“The signing of this MoU today is the culmination of conversations arising from the mining indaba held a fortnight ago in Cape Town on the need to foster such beneficial partnerships that provide support to see a thriving mining industry in Zambia. This MoU sets out terms of cooperation that goes beyond general corporate funding facilities availed by the bank, to include the identification of growth opportunities in the mining value chain and beyond,” she said.
“A key feature of this MoU is that it provides a platform aimed at fostering and providing growth opportunities for small and medium sized enterprises (smes) in the mining value chain sector of Zambia. This cooperation will help identify such opportunities for increased local participation in the mining sector predominantly, and this resonates with the government’s agenda of building a resilient and sustainable mining industry anchored on investments that deliver benefits to all Zambians,” Ms Banda said.
Ms. Banda said there is a need for local people to participate in building a resilient and sustainable mining industry anchored on investments that deliver benefits to all citizens.
“This agenda cannot be complete without local participation in the sector. We want to see our smes play a critical role in our mining value and supply chains. Together with Zanaco, we are in alignment with the government’s call to build and promote linkages aimed at promoting value addition in the mining sector. ZCCM IH will leverage Zanacos’ financial capacity, its physical and digital footprint, and its endeavour and commitment in providing the support in creating these linkages. Our own philosophy of sustainable growth and value creation mirrors theirs, and is why we are sure that by working together we can do and achieve great things for the benefit of our shareholders and all stakeholders,” she said.
Ms. Banda added that ZCCM IH is encouraged and determined to respond to the growing demand for copper, cobalt and other strategic minerals on the metal market.
“The MoU we are signing today will ensure that suitable bank products, financial support and capacity building through financial literacy training programs among others, are provided to qualifying smes in the mining value chain. This we believe will equip smes with the necessary tools and resources to actively participate in the industry and gain value to expand their businesses, create jobs and contribute to the social-economic development of our country. Let me conclude by saying that our goal is to build such strategic partnerships and encourage local participation in the mining sector’s value chain.”
“We are further encouraged and determined to respond to the growing demand for copper, cobalt and other strategic minerals, the need for value addition and beneficiation to our minerals, as well as to governments’ audacious goal to take the country’s annual production levels from the current 830,000 to 3 million metric tons in the next ten years,” she concluded.
Zanaco Board Chairman Patrick Wanjelani asked players in the mining value chain to take advantage of the opportunity and help Zambia attain its vision of becoming a middle income country.
