Funded by UKAID, the Private Enterprise Programme Zambia (PEPZ) is a five-year programme that builds and strengthens the capacity of Zambian small and medium enterprises (SMEs) in the private sector in order to create jobs and contribute to the diversification of the economy.
PEPZ is being implemented through targeted interventions that identify and support entrepreneurs with the attitude and willingness to become more competitive.
Context of assignment:
There are political and commercial pressure’s to increase the local content of manufacturing inputs into Zambian mines. The government as part owners through ZCCM and the recently appointed Mines and Mineral Development Minister Richard Musukwa have been vocal regarding the lack of Zambian manufacturing inputs into the mines. There should also be a commercial advantage through shortened supply chains in sourcing from local manufactures, provided they meet the necessary standards. This PEPZ facilitated project has been initiated to support the increase in local content into the mines. There is a need on the one hand to improve the quality of the supply SME’s and on the other hand develop the mines to recognize that Zambian SME’s with the right support and purchasing structures can be suppliers of first choice. It is recognized that bridging this gap between demand and local supply will not be easy with mistrust and miss understandings on both sides. The objective therefore is to build the capacity of the Copperbelt chambers of commerce in order that they can be the link between their SME members and the mines. The chambers will identify suitable SME candidates that require capacity building in manufacturing best practice. There have been a number of previous initiatives that have attempted to develop an increase in local content of manufactured goods into the mines, with varying degrees of success. This initiative will only work with the “willing” who are prepared to put in a share of their own resources, in addition this initiative will not be “doing things” to the SME’s. The SME’s will therefore be expected to be “doing things” themselves by make improvements with help and support from external experts through the chambers and PEPZ.
Objectives of assignment
The objective of this assignment is to develop a road map for interventions that will lead to an increase in local procurement into the mines. The consultant will need to have a clear understanding of the stakeholders their constraints and the role that they play in securing an increase in local content. They will work alongside PEPZ and the co facilitator giving guidance that they in turn can support the key stakeholders building capacities where appropriate to the end of the project.
Scope of work:
We are looking for an experienced consultant who can support the Zambian team in gaining a clear understanding of the issues in increasing mining local content in Zambia. Understanding and developing strategies to overcome constraints in the system and possible quick wins.
- Hold preliminary meetings with individual mine companies to have clarity in understanding their current position/challenges with local procurement. To get their buy-in to the initiative and process and to set out the benefits.
- Establish a steering group with reps of mine companies, chambers, suppliers to agree the approach and project plan. This meeting would include agreement on project aims, process, organisations/individuals to involve, time plan, scoping etc. – including for example agreement on the meaning of ‘local content’ (eg. not just local brokering of goods manufactured outside Zambia).
- Detailed discussions with individual mine companies to understand what they are doing already on local procurement, their objectives, what has worked, what has not worked, opportunities for increasing local procurement (including quick wins), their perception of challenges and actions needed to increase local procurement.
- Benchmarking of mine companies’ activities on local procurement against best practice and use of existing tools such as IFC’s local procurement self-assessment toolkit.
- Discussions with suppliers and potential suppliers to get their views on accessing procurement opportunities, challenges they face, skills gaps already identified and actions to increase local procurement in future.
- Discussions with chambers and other stakeholders with an interest in increasing local procurement. This would map out interested stakeholders, feed into who does what in the action plan and help ensure that the PEPZ project is not working in isolation.
- Gather information / case studies on good practice in local procurement – from Zambia and elsewhere
- Prepare a workshop briefing paper providing information gathered from the above discussions. Discuss the draft briefing paper with the steering group and plan the workshop.
- Hold workshop – present the briefing paper and feedback from discussions and then use the workshop to agree a vision and action plan, with commitment from different bodies to deliver the actions.
- Road map develop a road map for follow on action
- Set up a steering group representative of the key stakeholders of the project.
- Develop a top level road map that all stakeholders have bought into.
- Structure the programme that will get “buy in” from the key stakeholders
- Design with the key stakeholders the structure of the steering group and the proposed workshops.
Experience and qualifications:
- Extensive experience in the extractive industries particularly in sub-Sahara Africa. Experience in local content and development of local supply chains linked to major mining projects. Experience in the application of local procurement self-assessment toolkits.