Zambia to strictly enforce SI 35 of the Citizens Economic Empowerment Act

The Zambian government is deeply concerned by the ongoing practice of exporters and importers engaging foreign transporters to move goods by road within Zambia—an abrogation of the law.

In a press statement issued on 7 May 2024, in Lusaka, Ministry of Small and Medium Enterprise Development (MSMED), Permanent Secretary Subeta Mutelo noted that exporters and importers are abrogating the Citizens Economic Empowerment (Transportation of Heavy and Bulk Commodities by Road) (Reservation) Regulations, by engaging foreign transporters to move goods by road within Zambia.

Subject to the Railways (Transportation of Heavy Goods) Regulations, 2018, a person who intends to transport a commodity by road shall give preference to a local road transporter in accordance with these Regulations.

Section 3 (1) of the Act

Subeta further noted that the Regulations that apply to producers, manufacturers, or users of raw materials for a commodity, such as oil suppliers, also extend to other businesses, such as logistics companies, clearing and forwarding companies, and oil marketing companies. And that this also includes transportation by road of a commodity to a person’s plant, industry, or place of business.

A person who intends to export a commodity referred to in the Schedule, from the Republic to another country, shall ensure that at least fifty percent of the commodity is transported by a local road transporter.

Section 4

Subeta has since urged all businesses involved in the export and import of goods in Zambia to follow the law, failing which MSMED, in collaboration with other law enforcement agencies, will take action to ensure that the culprits are brought to justice and that local transporters are given business preference as provided for by the Act.

While the government assures all transport sector players that it is taking serious steps to ensure that contracts for transporting heavy and bulk commodities by road are awarded to local transporters, MSMED has also instructed authorised officers to enforce the Act to benefit Zambians.