ZAMBIA Trends and Developments Contributed by: Joseph Jalasi, Mailesi Undi, Chama Simbeye and Wana Chinyemba, Dentons Eric Silwamba, Jalasi & Linyama Legal Practitioners
investors and the government enter into contracts. Government policies focused on “value addition” in mineral processing and energy minerals (especially lithium) are raising new regulatory issues involving royalty rates, transfer pricing, and tax incentives. Advisers have also observed closer scrutiny and stricter enforcement of exchange control and foreign exchange measures as the Bank of Zambia aims to stabilise the kwacha amid growing mining exports and FDI. Zambia Redefines Minerals, Jobs and Local Content The enactment of the Geological and Minerals Devel - opment Act, 2025, and the commencement order of the Minerals Regulation Commission Act mark the most comprehensive update to Zambia’s mining legal framework in ten years. The Geological and Minerals Development Act establishes an Artisanal and Small- Scale Mining (ASM) Fund aimed at formalising and supporting small-scale operators, implements man - datory quotas for local employment and procurement, and enhances regulations governing environmental and social responsibility. The newly implemented local content regime under the Geological and Minerals Development Act and its associated Statutory Instrument marks a decisive shift in Zambia’s mining legal framework towards deeper domestic participation. Mining rights-holders will soon be required to allocate at least 20% of procurement budgets to registered Zambian suppliers within six months of the SI’s commencement, increasing to 40% over five years. The Mineral Regulations Commission Act deals with mining rights, licences, large-scale mining in Zambia, gemstone mining, health and safety, environmen - tal protection, and geological services in respect of analysis, royalties and charges. Notably, the MRCA centralises other departments into one Commission by overhauling the previous positions of Director of Mines, Director of Geological Survey and the Director of Mining Cadastre. All of these departments are now centralised into one commission. The MRCA estab - lishes the Minerals Regulation Commission (MRC) which is a corporate body with perpetual succession, whose primary function is to regulate and monitor the
development and management of mineral resources in the Republic of Zambia. For mining lawyers and tax advisers, these reforms reshape how licences are granted, transferred, and renewed. Companies must now meet stricter local content and beneficiation obligations, which will influ - ence investment structuring, joint venture negotia - tions, and supply chain compliance. The ASM Fund also introduces opportunities for micro-finance and community enterprise develop - ment, but it will require new financial-legal instruments and accountability frameworks. Additionally, greater emphasis on environmental dis - closure, social impact audits, and community par - ticipation will expand the role of environmental law specialists and ESG advisers. For multinational investors, this evolving landscape heightens the need for stability clauses, dispute reso - lution readiness, and compliance monitoring to man - age sovereign and operational risk in long-term mining contracts. Data Protection Goes Live Zambia’s Data Protection Act, No 3 of 2021, has been been actively enforced since 2025 following the operationalisation of the Data Protection Commission (DPC). The DPC’s guidance and enforcement road - map began rolling out in early-to-mid-2025. Organisations that process personal data, such as banks, telecoms, employers, healthcare providers, HR service providers and tech platforms, now face immediate compliance obligations relating to lawful bases for processing, data subject rights, data protec - tion impact assessments, cross-border transfer rules, and breach notifications. Failure to comply carries regulatory sanctions, rep - utational loss and potential civil claims. The DPC is empowered to investigate and impose penalties. Courts and regulators will increasingly be asked to balance privacy rights with public interest and national security exceptions.
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