Micro Small Medium Enterprise (MSMEs) Development in Lumwana

Lumwana Copper project

Barrick Gold corporation owns and operates Lumwana Copper Project (Lumwana Mining Company) and the Lumwana Estate,

In 2005 Environmental Impact Assessment (EIA) conducted identified 8 potential Impact areas,

To manage the anticipated social impacts of the project and the Estate, Lumwana Mining Company developed the Social Sustainability Management Plan (SSMP).

Copper Project potential Impacts

2005 EIA Identified 8 Potential impacts which included:

Employment,

Population influx and secondary development,

Safety and local communities traditional right of way,

Compensation for loss of crops,

Increased vehicle traffic,

Loss of local culture and customs,

Potential increase in HIV/AIDS infections,

Sustainable Social and Economic development in Lumwana.

Vision for

Community

Relations

Engage:

Mitigate Impacts:

Purpose: To help the business secure and maintain access to resources by proactively engaging with local communities, mitigating social impacts and sharing the benefits of mining.

The Community Relations Vision is:

“Operating with community support”

• Social Risk • Social Impacts• Cultural Heritage• Resettlement• Community Safety • Contractors• Social Closure • Influx and TIMS• Indigenous

Peoples

• Stakeholder Engagement

• Grievance Mechanism

• Social Obligations• Indigenous

Peoples • Community Development

• Local Employment • Local Procurement

Share Benefits

Location Map of LMC Footprint and Nearby

Communities

Business Development

STRATEGIC OBJECTIVES

Alternative livelihoods - Agri Food Innovators (AFI), SME development

Local Financial services inclusion - Influencing Financial and other service providers to support savings, credit, insurance & other financial products for local economic development.

Promotion of local procurement opportunities and support provision in offering opportunities – Local Contractor development program

The Agri-Food Innovators

Program (AFI)

The Agri-food innovators~ (AFI) Programme is LMC’s vehicle to facilitate Agriculture Development Programme in the sub region of North-western Province

It is the point of convergence for Agriculture activities in the three chiefdoms of Mumena, Mukumbi and Matebo.

Enterprise incubation:

Mutanda Dairy

Initiative:

Partnership between Barrick Lumwana and YAPYA Youth Investment Trust of Zambia (YAPYA) to empower young women take up dairy enterprise as a business.

EXPANSION AND SUSTAINABILITY

WIN : (Wealth Creation through Irrigation in North-Western province)

Barrick Lumwana committed US$ 400,000 as match with EU

Product value

Capacity for 3,500 (1,500 for Lumwana catchment area) households to enter commercial horticultural production.

Sustainable “last-mile” input supply chains for smallholders close to small-scale producers.

Producer linkage to markets for their produce.

Smallholder farmer link to sources for microfinance for investment in horticultural production.

Farm business Advisors/Agro dealership linkages(Nutri Aide).

Support for Community provision of

microfinance services

Financial Literacy: Understanding financial behaviors and developing intermediation training programs on how to manage money.

Financial Inclusion: Delivery of financial Services to areas where people have no access to formal financial services (Financially excluded people),

Micro Credit : Lending & recovery of small amounts of money to small business

Promotion of local procurement opportunities

GEO category:

C1 Principal origin/office in one of the Chiefs area i.e. Mumena, Matebo and Mukumbi

C2 Principal office is based in North Western Province except immediate impact area i.e. Chief Mumena, Mukumbi and Matebo area.

C3 Principal office is based anywhere in Zambia except North Western Province

NL Principal office is not based on Zambian ground

SADC Principal office of company is based in SADC member country excluding Zambia

Key assumption in

defining local

NL

C3

C2

C1

Long term objective is to promote development of Lumwana and regional markets.

Focus being:

Narrow the current industry preference focus on National and foreign supply content

Inclusive of and sharing benefits with C1 SMEs

Opportunity description

Wire Fencing C2+ C1

Light duty simple slab work C1+ C1

Simple light duty bridge construction C3+ C1-C2

Plumbing works C2+ C1

Wall construction C3+ C1

Simple building construction C3+ C1

Uphosltery and HV seat repairs C3+ C1

Construction Labour Hire C3+ C1

Concrete and shed construction C3+ C1

Residential Housing Construction C3+ C1-C3

Bridge Construction C3+ C1-C3

Ordinary conrete office construction C3+ C1-C2

Prefab office construction NL C1-C2

Heavy Duty Slab works NL C1-C3

Specialised Painting (sand blasting, specialised Galvanising) C3+ C1-C2

Sewerage works C3+ C1-C2

Local SME partnership constraints

Lack of capacity in small industries to meet industry standards,

Information gap between local SMEs, Government and large companies,

Government policies and systems for industry development

Access to technology and capital

lack of knowledge of the local market by buying firms. lack of buying firm confidence in suppliers within the regions

Lack of supplier capability technology, capital, skill e.t.c

Lack of enabling business environment; land, water, electricity, access to market for other other supporting inputs i.e. skilled labour, stationary e.t.c.

Perception of buyer to local supplier

Suppliers exposure to mine opportunities and operations

Low influx rate of investors from surrounding more developed (C3 & SADC) regions into C1 & C2

Lack of incentive to set up within the region

Local SME challenges

a. lack of knowledge of the local market by buying firm

b. lack of buying firm confidence in suppliers within the regions c. lack of supplier capability technology, capital, skill e.t.cd. lack of enabling business environment; land, water, electricity, access to market for other other supporting inputs i.e. skilled labour, stationary e.t.c.e. Perception of buyer to local supplier f. Suppliers exposure to mine opportunities and operationsg. low influx rate of investors from surrounding more developed (C3 & SADC) regions into C1 & C2 f. Lack of incentive to set up within the region

Scope of SME development mix

Conclusion

Wealth Creation by the promotion of New Industrydevelopment /Local Business development throughpartnerships is the Anchor in:

Increasing disposable income and,

Creating jobs for the Local communities.