Facilitating Linkages Between Extractive Companies and Local Businesses

At a Glance
  • It is necessary to address information gaps that exist between these two sets of actors: either local businesses’ knowledge of tenders and upcoming contracts or extractive industry companies’ knowledge of existing local businesses.
  • Supplier portals, such as the ICN Gateway in Australia, ProjectConnect in Western Australia, or the Africa Partner Pool in Ghana, as well as industry trade shows and conferences, are effective ways of connecting buyers and sellers.
  • A careful analysis of company qualification processes and requirements can help to address important barriers and identify ways to incentivize local purchasing. 

Case Studies

Key Resources

Topic Briefing

Facilitating the connection between buyers and sellers is often the first steps towards unlocking local supply opportunities. To do so, it is necessary to address information gaps that exist between these two sets of actors – either local businesses’ knowledge of tenders and upcoming contracts or extractive industry companies’ knowledge of existing local businesses.

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Connecting buyers to sellers could take the form of supplier portals, which are often online. Examples of supplier portals include the ICN Gateway in Australia, ProjectConnect in Western Australia, or the Africa Partner Pool in Ghana. In addition, events such as trade shows and industry conferences can be used to provide opportunities for local businesses and extractive industry companies to connect. Both methods will be further explored in subsequent subtopics.

Extractive industry company qualification processes sometimes impose requirements that are beyond the capability of local suppliers. A careful analysis of such requirement 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.[1] These methods are also discussed in subsequent subtopics.

View footnotes

[1] IPIECA, Local content case studies, (London: IPIECA, 2016), 10