Facilitating Linkages Between Extractive Companies and Local Businesses
At a Glance
To boost local procurement, it is important to address key information gaps. For example, local businesses may lack detailed knowledge of tenders and upcoming opportunities, even as extractive companies may not know the capacity of local businesses.
Supplier portals offer an effective means of connecting buyers and sellers.
A careful analysis of companies’ qualification processes and requirements can help address barriers and identify ways to incentivize local purchasing.
- New Matching Guinea’s Entrepreneurs with a Larger Marketplace (International Finance Corporation)
- Procuring from SMEs in Local Communities: A Good Practice Guide for the Australian Mining, Oil and Gas Sectors (Mary-Anne Barclay, David Brereton, Ana Maria Esteves, Daniel Samson)
- Local Content: A Guidance Document for the Oil and Gas Industry (International Petroleum Industry Environmental Conservation Association)
- Supplier Self-Service: 5 Ways to Make Your Supplier Portal a Success (Payment Works and Shared Services)
- Best Practices for Designing Your Partner Portal Home Page (Channeltivity)
- Recording and Presentations from World Bank ELLED CoP Webinar on Supplier Portals (World Bank Extractives-led Local Economic Diversification Community of Practice (ELLED CoP))
This blog post describes Guinea’s Supplier and Partnership Marketplace, a digital platform that aims to connect small and medium ...
Facilitating connections between buyers and sellers is often the first step toward unlocking local supply opportunities. To do this, it is necessary to address information gaps that exist between local businesses and (often multinational) extractive companies. For example, local suppliers may lack knowledge of tenders and upcoming opportunities at the same time that extractive companies lack knowledge of existing local businesses.
Extractive companies’ qualification processes sometimes impose requirements that are beyond the capability of local suppliers. A careful analysis of such requirements can help to address these barriers, as well as to identify ways to incentivize local purchasing. For example, in Chile supplier prequalification requirements and certification support were harmonized across the 11 mining companies in the Atacama mining cluster and the Atacama Region Development Corporation in an effort to reduce the cost of doing business for both buyers and suppliers. These methods are discussed further in subsequent subtopics.