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The view from below: ‘lock-in’ and local procurement in the African gold mining sector

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  • Hanlin, Rebecca
  • Hanlin, Christopher

Abstract

Through linkage creation, commodity extraction has the capacity to support local industrial production and capabilities building. Drawing on the experience of supplying inputs into the East African gold mining industry, this paper examines the constraints experienced by local suppliers arising from the purchasing procedures of large mining corporations and specialist construction companies contracted to construct these mines. Lead firms become locked-in to particular ways of working which minimise the opportunities that local suppliers have in providing products and services. After reviewing the situation for local mining suppliers in East Africa, the paper examines ways in which lead firms, the suppliers themselves and others (governments and industry associations) can better support local supplier involvement.

Suggested Citation

  • Hanlin, Rebecca & Hanlin, Christopher, 2012. "The view from below: ‘lock-in’ and local procurement in the African gold mining sector," Resources Policy, Elsevier, vol. 37(4), pages 468-474.
    • Handle: RePEc:eee:jrpoli:v:37:y:2012:i:4:p:468-474
    DOI: 10.1016/j.resourpol.2012.06.005
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    Cited by:

    1. Parker, Rachel & Cox, Stephen, 2018. "How the globalisation and financialisation of mining Majors affects linkage development with local engineering and technology suppliers in the Queensland resources industry," Resources Policy, Elsevier, vol. 58(C), pages 125-130.
    2. Weldegiorgis, Fitsum S. & Dietsche, Evelyn & Franks, Daniel M., 2021. "Building mining's economic linkages: A critical review of local content policy theory," Resources Policy, Elsevier, vol. 74(C).
    3. Wegenast, Tim & Beck, Jule, 2020. "Mining, rural livelihoods and food security: A disaggregated analysis of sub-Saharan Africa," World Development, Elsevier, vol. 130(C).
    4. Narula, Rajneesh, 2018. "Multinational firms and the extractive sectors in the 21st century: Can they drive development?," Journal of World Business, Elsevier, vol. 53(1), pages 85-91.
    5. Judith Fessehaie & Zavareh Rustomjee & Lauralyn Kaziboni, 2016. "Can mining promote industrialization?: A comparative analysis of policy frameworks in three Southern African countries," WIDER Working Paper Series wp-2016-83, World Institute for Development Economic Research (UNU-WIDER).
    6. Geenen, Sara, 2019. "Gold and godfathers: Local content, politics, and capitalism in extractive industries," World Development, Elsevier, vol. 123(C), pages 1-1.
    7. Macatangay, Rafael Emmanuel “Manny”, 2016. "Optimal local content requirement policies for extractive industries," Resources Policy, Elsevier, vol. 50(C), pages 244-252.
    8. Lema, Rasmus & Bhamidipati, Padmasai Lakshmi & Gregersen, Cecilia & Hansen, Ulrich Elmer & Kirchherr, Julian, 2021. "China’s investments in renewable energy in Africa: Creating co-benefits or just cashing-in?," World Development, Elsevier, vol. 141(C).
    9. Lema, Rasmus & Hanlin, Rebecca & Hansen, Ulrich Elmer & Nzila, Charles, 2018. "Renewable electrification and local capability formation: Linkages and interactive learning," Energy Policy, Elsevier, vol. 117(C), pages 326-339.
    10. Judith Fessehaie & Zavareh Rustomjee & Lauralyn Kaziboni, 2016. "Can mining promote industrialization? A comparative analysis of policy frameworks in three Southern African countries," WIDER Working Paper Series 083, World Institute for Development Economic Research (UNU-WIDER).
    11. Vincent Géronimi & Claire Mainguy, 2020. "Exploitation minière et développement : des effets toujours controversés. Introduction," Mondes en développement, De Boeck Université, vol. 0(1), pages 7-29.
    12. Takam Tiamgne, Xavier & Kalaba, Felix K. & Nyirenda, Vincent R., 2022. "Mining and socio-ecological systems: A systematic review of Sub-Saharan Africa," Resources Policy, Elsevier, vol. 78(C).
    13. Ben Radley, 2020. "The End of the African Mining Enclave? Domestic Marginalization and Labour Fragmentation in the Democratic Republic of Congo," Development and Change, International Institute of Social Studies, vol. 51(3), pages 794-816, May.
    14. Kragelund, Peter, 2017. "The making of local content policies in Zambia's copper sector: Institutional impediments to resource-led development," Resources Policy, Elsevier, vol. 51(C), pages 57-66.
    15. Olle Östensson, 2017. "Local content, supply chains, and shared infrastructure," WIDER Working Paper Series 096, World Institute for Development Economic Research (UNU-WIDER).
    16. Olle Östensson, 2017. "Local content, supply chains, and shared infrastructure," WIDER Working Paper Series wp-2017-96, World Institute for Development Economic Research (UNU-WIDER).
    17. Michael Nassen Smith & Carilee Osborne & Zunaid Moola & Ben Turok, 2019. "South African gold mining and local procurement in Tanzania and Ghana," WIDER Working Paper Series wp-2019-80, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Gold mining; Value chains; Supply chains; Linkages; East Africa; Local procurement;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy

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