Building the Capacity of Local Businesses
At a Glance
- To address key gaps in facilitating connections between buyers and suppliers, businesses may develop basic training and skills development programs that are public, private, or joint public and private.
- Basic training may include addressing questions such as: what is procurement and what does it do, who uses it and how often, what are the needs of extractive industry sites, what are tenders, what are technical specifications, and how are procurement decisions made?
- Skills development may involve a company drawing on its own personnel to provide direct training for prospective suppliers or the community at large. This can be especially useful during the early development phases when the project impact and training budgets are smaller.
- Supplier development includes specific businesses from which the extractive industry site procures goods or services.
- Enterprise development, by contrast, typically applies to all businesses in the community.
- Creating the Foundations for a Linkage Program in a Rural Setting: Lessons Learned from the Early Stages of the Ahafo Linkages Program in Ghana (International Finance Corporation, Newmont Ghana Gold Ltd.)
- Anglo American Corporation's Zimele Enterprise Program (African Development Bank, African Natural Resource Center)
- Developing a Transparent System for Local Contracting, A Manual for Practitioners Based on the eProcurement Experience in Chad (International Finance Corporation, Esso Exploration and Production Chad, Inc.)
- Developing SMEs through Business Linkages, A Manual for Practitioners Based on the MozLink Mentorship Experience in Mozambique (Mozal Aluminum, International Finance Corporation)
- IFC Local Supplier Development Program Factsheets (CommDev: Enhancing Benefits to Communities)
Creating the Foundations for a Linkage Program in a Rural Setting: Lessons Learned from the Early Stages of the Ahafo Linkages Program in Ghana
This resource analyzes the initial stages of the Ahafo Linkages Program and offers guidance on how to create a local procurement unit within ...
This report illustrates ways to extract value from extractives projects using corporate initiatives to promote SMEs. Looking specifically at ...
This resource examines the links between the oil and gas industry and the Sustainable Development Goals (SDGs), supporting a shared ...
These guidelines serve as a practical policy tool to increase women’s economic empowerment in African countries through increased ...
This case study focuses on means of developing backward linkages between oil companies and local firms in Kazakhstan, creating a business ...
This policy brief examines barriers to women’s economic empowerment in Sub-Saharan Africa, with the aim of mobilizing private-sector ...
Beyond facilitating the connection between buyers and suppliers, there often remains a need to build the capacity of suppliers. Procurement priorities for extractive industry companies include cost, quality, delivery time, and codes of conduct within the suppliers themselves. To address gaps that businesses may have to meet these priorities, programs that are public, private, or joint public and private may be developed. Basic training may include helping suppliers to understand the procurement process and needs of a company, addressing questions such as: what is procurement, what does procurement do, what does the extractive industry site need, how often and who uses it, what are tenders, what are technical specifications, and how are decisions made in procurement?