By Arnold Tutu
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 says the agreement between FQM and leading commercial banks will 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 says the agreement will help local companies compete favourably with foreign firms.
He says the arrangement will allow banks to assess the risk of Zambian suppliers against FQM’s credit rating, thereby reducing interest rates.
Mr. MWABA says local companies will be able to grow as suppliers will no longer struggle to secure financing for their orders.
FQM spent 2 billion US dollars on goods and services last year.
Mr. MWABA says the arrangement will also help local suppliers and contractors meet the compliance requirements set by the Canadian mining company.
He says increased participation of Zambian-owned companies in the mining value chain will create jobs, boost tax revenues and improve skills.
