Navigating mine supply and service provision in neoliberal Zambia: Tracing processes of indigenous capital formation among former ZCCM employees

Abstract

Following the privatization of Zambia Consolidated Copper Mines (ZCCM), some former employees utilized their training, skills and retrenchment packages to start their own mine supply and servicing businesses. Drawing upon over 150 interviews and 4 consultative workshops conducted over a span of five years (2015–2020) with mine suppliers and service providers, government officials, civil servants, and mine procurement staff, this article examines the trajectories and challenges faced by these former ZCCM employees. It finds that the post-privatization economic environment largely benefited the mining companies, with few opportunities afforded for local mine suppliers and service providers. Contrary to the expectations of the World Bank and others, the supposed benefits to host countries derived from private ownership of large-scale mines and the shift in the global mining industry from vertical integration to outsourcing have been minimal. Some Zambian mine suppliers and service providers have responded to this situation by transitioning into public infrastructure construction or demanding the implementation of local content measures. These nascent capitalists have (re)turned to the state to either fund or facilitate their continued growth. However, the continued fiscal dependence of the Zambian economy on copper mining and mounting public indebtedness may preclude these strategies.