local content in west africa : challenges and...

23
Local content in West Africa : challenges and advances IGF Annual General Meeting Geneva, October 2017

Upload: dinhcong

Post on 12-May-2018

218 views

Category:

Documents


2 download

TRANSCRIPT

Page 1: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Local content in West Africa : challenges and advances

IGF Annual General Meeting

Geneva, October 2017

Page 2: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 2

Outline

Context

Challenges

Advances

Page 3: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 3

Supporting LC policy in West Africa

2009 2010 2011 2012 201520142013

Mali

Burkina F. / Ghana

Regional WA: Senegal /Guinea / Ghana

WALPIBurkina F. - Liberia

Côte d’Ivoire

2016 2017

Guinea

Burkina F. / Ghana / Mali / CI

World Bank & Kaiser EDP

Page 4: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 4

Gold

Bauxite /alumina

Iron ore

Mineral sands

Zinc

Manganese

Uranium

Phosphates

Diamonds

Copper

Coal

MAURITANIAMALI NIGER

BENIN NIGERIA

TOGOGHANA

COTE D’IVOIRE

LIBERIASIERRA LEONE

GUINEA

GUINEABISSAU

SENEGAL

Significant mining activity

Page 5: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 5

Mining company value-added

Kinross

Page 6: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 6

LC policies: international examples

Page 7: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 7

Challenging LC context

• Infrastructure

• Economic structure

• Skills / HR

• Capital / Financing

• Business environment

Page 8: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 8

Challenges: economic structure

Page 9: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 9

Challenges: skills / HR

Data from UNESCO Institute of Statistics, 2016

Page 10: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 10

Challenges: skills / HR

Data from Human Development Report 2015, UNDP

Page 11: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 11

Challenges: financing

Formal MSMEs

Data from IFC Enterprise Finance Gap Database (2011)

Page 12: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 12

Challenges: infrastructure

33.6032.14

25.05

19.84

17.91

15.06

12.3610.93

9.67

5.96

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

Mali Niger Senegal Benin CapeVerde

BurkinaFaso

Ghana Coted'Ivoire

Nigeria SouthAfrica

US

cen

ts p

er k

Wh

Data from Africa Infrastructure Country Diagnostic, AfDB

Electricity cost per unit, total (US cents per kWh)

Page 13: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 13

Challenges: infrastructure

Logistics Performance Index

Data from LPI 2016, World Bank Group

Logistics PerformanceIndex

Page 14: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 14

Challenges: business environment

Doing Business 2017 - SSADistance to Frontier scores

Doing Business 2017, World Bank Group

Page 15: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 15

1. Distinction in terms of

geography

2. Participation by

citizens

3. Extent of value-add taking

place locally

“Local-local”/“Localised”

National

Wider region

Ownership, management,

employment

Manufacturing or

delivering service locally

USING SPEND ON LOCALLY-REGISTERED FIRMS DOES NOT CAPTURE

THE TRUE SOCIO-ECONOMIC BENEFITS

Defining local

Page 16: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Locally-

registered

21.4%

47.2%

85.0%

Liberia

Burkina Faso

Brazilian mine

5.4%

4.6%

63.1%

20.0%

6.9%

75.0%

4.6%

3.0%

61.7%

Locally-owned

Local value add

and ownership

Local value add

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Defining local

Page 17: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 17

Some key principles for LC policy in WA

• Information sharing

• No universal approach

• Medium and long term

• Multi-stakeholder

• Involve subcontractors

Page 18: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 18

Practical guide (World Bank, 2015)

Page 19: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 19

Modules of the Guide (1 – 4)

Page 20: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Page 20

Modules of the Guide (5 – 8)

Page 21: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

• Purpose: – Reduce investment risk in target markets– Orient local content support programs

• Feature: provision of market data (not otherwise available)

• Mechanism– Data analysis at BGR‘s Department for international

Cooperation and the German Mineral Resources Agency (DERA)

– Advisory services by intermediary agencies (Chambers of Commerce or authorities in host countries)

Modelling of mining procurement data (BGR, 2017)

Page 22: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

BGR’s model: sample output

Page 23: Local content in West Africa : challenges and advancesigfmining.org/wp-content/uploads/2017/11/Session-14-Local-content... · Local content in West Africa : challenges and advances

Local content in West Africa : challenges and advances

IGF Annual General Meeting

Geneva, October 2017