FQM Financing Deal to Boost Zambian Suppliers…

The Association of Mine Suppliers and Contractors has welcomedFirst Quantum Minerals (FQM)’s initiative to support the growth of Zambian-owned companies in the mining sector. Association PresidentCOSTA MWABAsays an agreement between FQM and leading commercial banks will give local suppliers access to affordable financing, enabling them to expand their businesses and compete more effectively with foreign firms. Last week, FQM signed a Memorandum of Understanding withZANACO, First National Bank (FNB), ABSA, Stanbic and Inde Creditto develop and deliver financing solutions for Zambian-owned companies.

MWABA says the arrangement will allow participating banks to assess the risk of Zambian suppliers against FQM’s credit rating, which could help reduce borrowing costs and make financing more accessible. He says the initiative will also enable local companies to grow by addressing challenges suppliers face in securing financing to fulfil orders. FQM spent about2 billion US dollars on goods and services last year, highlighting the potential market for Zambian-owned businesses within the mining supply chain.

MWABA says the financing arrangement will further help local suppliers and contractors meet the compliance requirements set by FQM. He says increased participation of Zambian-owned companies in the mining value chain will contribute to job creation, increased tax revenues and improved skills development.