Access to Finance
At a Glance
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Access to finance is an important element of expanding the capacity of local supply chains.
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Efforts to address suppliers’ access to finance may be coordinated by the extractive industry itself or included in government policies to foster local procurement. International financial institutions also have a role to play.
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A first step is to understand the factors that affect local firms’ ability to access both extractive industry procurement contracts and to finance.
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To determine the most suitable ways to boost local suppliers’ access to finance, extractive companies and policy makers must also consider factors such as market distortion and the risk of dependency; also, they should avoid the duplication of institutions or services.
Key Resources
Topic Briefing
To expand their capacity, local suppliers require adequate access to finance. Governments and the extractive industry itself can improve suppliers’ access to finance in many ways. International financial institutions also have a role to play. The first step of any effort in this direction is to understand suppliers’ specific financing challenges and needs, as well as the for local suppliers the first step is to understand their challenges and needs, and obstacles that affect their ability to access extractive industry procurement contracts.