- Forward Linkages (Supplying Extractives’ Downstream Sectors)
- Policy Options
- Identifying Obstacles to Downstream Integration
Identifying Obstacles to Downstream Integration
At a Glance
- Consultation processes allow for potential investors to understand the position of government and the resources that government is prepared to commit to establishing downstream production.
- Consultations help to facilitate mutual understanding, and policies based on such understanding are far more likely to achieve defined objectives in supporting downstream production.
- In most cases, governments wanting to enhance downstream production will have to offer incentives and/or compulsions.
- Consultation alone may be sufficient to induce investment downstream in cases where the natural resource is unique, or at least replicated in very few situations.
- In deciding whether to enter into refining and further downstream processing, it is important to recognize that governments may achieve greater policy aims by focusing on other parts of the value chain, such as local procurement.
Governments contemplating supporting downstream production should consult with potential downstream investors so that they can identify the obstacles that are preventing or inhibiting them from investing. Based on this understanding, governments contemplating supporting downstream production should also ascertain what inducements or incentives to support investment in downstream activities intended to overcome these identified obstacles are likely to be most effective.
 Baissac et al., Zimbabwe’s Beneficiation Policy Part 1: Understanding the drivers and objectives, (Eunomix research, 2015), 32
 Mbayi, 2011, cited in Mike Morris, Rachel Kaplinsky and David Kaplan, One thing leads to another commodities, linkages and industrial development: a conceptual overview. MMCP Discussion Paper No. 12, (Open University, 2011), 28; Mike Morris and Raphael Kaplinsky and David Kaplan One Thing Leads to Another. Promoting Industrialisation by Making the Most of the Commodity Boom in Sub-Saharan Africa, (University of Capetown and the Open University, 2012), 252
- Zimbabwe's Beneficiation Policy Part 1: Understanding the Drivers and Objectives (Claude Baissac, Ferdinand Maubrey, JP van der Merwe, Jessica van Onselen)
- One Thing Leads to Another. Promoting Industrialisation by Making the Most of the Commodity Boom in Sub-Saharan Africa (David Kaplan, Raphael Kaplinsky, Mike Morris)
- Region Fails to Cut it in Diamonds (Roman Grynberg)
- Botswana Diamond Workers Bleed (Roman Grynberg)
- Export Restrictions on Raw Materials: Experience with Alternative Policies in Botswana (Jane Korinek)
- Linkages to the Resource Sector: The Role of Companies, Government, and International Development Cooperation (Columbia Center for Sustainable Investment, Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ))
This paper analyzes policies that contribute to the governance and management of the mineral sector in Botswana. Lessons from other ...
One Thing Leads to Another. Promoting Industrialisation by Making the Most of the Commodity Boom in Sub-Saharan Africa
The ''resource curse'' is challenged in this paper by presenting opportunities for promoting industrial development by building economic ...
This report provides in an depth case study on Zimbabwe's Beneficiation policy, particularly contrasting the country's efforts to those made ...
Linkages to the Resource Sector: The Role of Companies, Government, and International Development Cooperation
This discussion paper provides a theoretical framework and overview on existing literature relating to the topic of linkages in the resource ...