In August 2025, the Government of Zambia unveiled a new framework mandating direct sharing of mineral royalties with provincial and district authorities. The reform responds to longstanding grievances in mining regions such as the Copperbelt and North-Western Province, where communities have often complained that the benefits of copper and cobalt wealth remain concentrated in Lusaka. Under the new policy, a fixed percentage of royalties collected by the central government will be automatically allocated to subnational governments, earmarked for infrastructure, health, and education programs.
Provincial leaders welcomed the move, framing it as a long-overdue correction to decades of fiscal centralization. Civil society groups, however, cautioned that unless funds are distributed transparently and managed with accountability, the reform risks entrenching local patronage networks rather than delivering real community benefits. Mining companies expressed measured support, noting that the policy could strengthen trust with host communities, provided it is accompanied by clear rules and effective oversight.
This reform has implications beyond Zambia’s borders. By tying mining revenues more directly to visible improvements in local services, the government aims to stabilize its social license to operate in regions where extractive projects face mounting social pressures. If successfully implemented, the policy could provide a template for other African producers balancing global demand for critical minerals with local demands for tangible benefits, reinforcing Zambia’s reputation as a reformist mining jurisdiction.
Issue Profile – Zambia Royalty-Sharing Reform
Lead Actor: Government of Zambia, Ministry of Finance & Ministry of Mines and Minerals Development
Focus: Mandated sharing of mineral royalties with provinces and districts to address regional grievances
Update (Aug 2025): New fiscal framework allocates a fixed percentage of royalties to subnational governments, targeting health, education, and infrastructure
Strategic Significance: Designed to rebuild social trust in