MINING & MINING SERVICES

Increasing the sustainable and inclusive economic impact of mining in Zambia

Commercial mining activities generate a series of economic impulses that reverberate across Society. These activities can be complemented by well designed supplier development and social investment programs implemented by the mine in partnership with local government and non-government actors.

A key challenge facing the sector is a lack of local integration as well as local community development.

Through intervention partnerships, Prospero aims to address the following sector-wide constraints:

Capital

Most mining service SMEs lack access to investment finance and working capital. Owing to high interest rates and the inability of banks to extend SMEs short- and long-term finance, this places major pressure on SMEs to successfully compete with larger firms, which in effect limits their growth capabilities.

Mining CSR budgets have typically been applied to quick impact projects with short-term benefits rather than investing in growth SMEs.

Capacity

Many SMEs lack the resources to prepare sound business and investment proposals, and access mentoring and support structures from the private sector and government institutions, which would greatly improve their capacity to access finance.

Connections

SMEs lack awareness of opportunities and strong connections to the mining markets. It is very difficult for them to penetrate the market when competing with well established preferred suppliers with whom the mining companies are familiar with and used to engaging.

 

Compliance

Many SMEs do not meet industry standards and do not have the required certification of products that mines need. The standards set during the pre-qualification process are high and difficult for small businesses to meet.

The Prospero Mining and Mining Services  sector is comprised of two initiatives:

LOCAL CONTENT PROCUREMENT

To increase local procurement in the mining supply value chain by supporting the Government of Zambia’s mining sector Local Content Policy through a co-ordinated, multi-stakeholder strategic action plan and building the capacity of local manufacturing and maintenance service SMEs in the mining sector.

LOCAL ECONOMIC DEVELOPMENT

To create a sector-wide platform that harnesses the collective efforts of individual mines across the country to achieve local economic development across mining host communities by converting mining Corporate Social Responsibility (CSR) funds into Corporate Social Investment (CSI) funds for viable and commercially sustainable SME growth interventions.

Our Response

Prospero catalyses and enhances the participation of local SMEs in the mine’s direct and indirect value chains through capacity building activities and incentivising market linkages between supplier SMEs and anchor firms with commercial opportunities.

We drive further collaboration between mining companies, SMEs and public sector players to promote equitable results for the wider economy.

We aim to address constraints more systematically to stimulate business growth through the pooling of resources of various development partners that work in the extractives sector.

Our Response

Prospero catalyses and enhances the participation of local SMEs in the mine’s direct and indirect value chains through capacity building activities and incentivising market linkages between supplier SMEs and anchor firms with commercial opportunities.

We drive further collaboration between mining companies, SMEs and public sector players to promote equitable results for the wider economy.

We aim to address constraints more systematically to stimulate business growth through the pooling of resources of various development partners that work in the extractives sector.

Partner With Us

To achieve the specific objectives of each initiative, Prospero Zambia seeks intervention partners that include, but are not limited to:

Chambers of Mines • Mining companies • Chambers of Commerce and Industry • The Zambia Association of Manufacturers • ZCCM-IH • Association of Mining Suppliers and Contractors • Mining goods and service SMEs • Government agencies