LUSAKA - The Association of Mine Suppliers and Contractors has welcomed First Quantum Minerals (FQM)'s plan to support the growth of Zambian-owned companies.
Association President Costa Mwaba said the agreement between FQM and leading commercial banks would provide suppliers with access to affordable financing.
Last week, FQM signed a memorandum of understanding with Zanaco, First National Bank (FNB), Absa, Stanbic and Inde Credit to develop and deliver financing solutions for Zambian-owned companies.
Mr. Mwaba said the agreement would help local companies compete favourably with foreign firms.
He said the arrangement would allow banks to assess the risk of Zambian suppliers against FQM's credit rating, thereby reducing interest rates.
Mr. Mwaba said local companies would be able to grow as suppliers would no longer struggle to secure financing for their orders.
FQM spent US$2 billion on goods and services last year.
Mr. Mwaba said the arrangement would also help local suppliers and contractors meet the compliance requirements set by the Canadian mining company.
He said increased participation of Zambian-owned companies in the mining value chain would create jobs, boost tax revenues and improve skills.
Source: ZNBC | By: Arnold Tutu