Natural resources, structural change, and industrial development: Local content in Zambia—a faltering experience?

Lombe, W. C.

doi:10.35188/unu-wider/2018/560-2

Cited by 5 publications

(2 citation statements)

References 9 publications

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“…Thus, despite government policies stipulating that grade 1 construction companies 4 engaged in public works must subcontract 20% of the value of a contract to local companies, subcontracting to Zambian-owned firms has not occurred. A similar picture emerges for services and trade: foreign-owned firms have contributed the great majority of value added within both sectors (Lombe, 2018).…”

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confidence: 69%

Beyond ‘Africa rising’: Development Policies and Domestic Market Formation in Zambia

Jeppesen

Kragelund

2021

Forum for Development Studies

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Beyond 'Africa rising': Development Policies and Domestic Market Formation in ZambiaThe 'Africa rising' narrative sparked a lively discussion of the powers of orthodox economic policies to ensure good economic governance and attract private investments to further stimulate economic growth. The 2014 commodity bust and the Covid-19 pandemic effectively ended this discussion and triggered a critical examination of the fundamentals of the narrative. This study investigates how orthodox economic policies have affected the strive for structural transformation in a resource-rich economy like Zambia. It argues that there is a mismatch between the mostly orthodox policies that have driven policy formulation and the needs of the domestic private sector. Therefore, it makes a case for setting domestic market formation as a guiding principle for future economic policies, specifically by focusing industrial policy on business climate, rather than investment climate, and by focusing on capacity building, upgrading, and growth in consumer and inter-sectoral demand, rather than only liberalisation and good economic governance.

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confidence: 69%

Beyond ‘Africa rising’: Development Policies and Domestic Market Formation in Zambia

Jeppesen

Kragelund

2021

Forum for Development Studies

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“…al., 2008), South Africa with the Mining Charter, Ghana with a strong Local Content Policy, and Bolivia with the National Constitution on Local Content Policy stimulate commercial activities with the SMEs in the extractive sector (Ovadia, 2016). Among the aspirations of local content, the mining sector generates linkages with upstream (backward) SMEs, which connect the activities to its suppliers of goods and services, and the downstream (forward) links, where its output is linked into intermediate manufacturers and final products (Lombe, 2018). These linkages involve flows of materials among the international network of firms including the marginalized SME along the global value chain (OECD et al, 2013;OECD, 2017).…”

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confidence: 99%

Local Content Policies in the Mining Sector in Zambia: A Synthesis of Its Benefits

Kanyinji¹,

Tembo²

2019

EJBM

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There has been lots of questions as to why there is continued marginalization of small and medium enterprises (SMEs) in the mines despite local content policies. A recent report regarding estimates of input goods and services to the mines in Zambia show an accumulation requirement of US$5 billion annually and the share of domestic firms in the mining market is less than 4 per cent, while that of indigenous firms is about 1 per cent. This raises lots of questions as to what extent local content help SMEs to supply to the mines. Local content policies are legal requirements to empower local SMEs so that a share of factors of production in form of labour, supplies of goods and technology required at various stages of the value chain is sourced from the domestic economy. A survey of 350 SMEs answered a questionnaire to determine how local content policies help them to supply to the mines. It was found out that the local content only helped SMEs to improve their skills and capacity and not to help them supply to the mines or employment of the local people. The study recommends that a mining commission of Zambia be formed with executive powers to enhance the inclusion of local SMEs to the mines. Further, a local content committee and economic empowerment must be institutionalized to improve the position of SMEs and enhance economic empowerment respectively

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The Colonial Legacies of Copper Dependence: Inequality and Bifurcated Social Protection in Zambia

Wolkenhauer

2022

International Impacts on Social Policy

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This chapter argues that colonial legacies influence social protection systems in Africa until the present. It focusses on Zambia where the dependence on copper exports has shaped not only social questions since independence but also the state’s ability to respond to them. It explains how the concentration of economic activity along the so-called Line of Rail has created a centre–periphery divide that spilled over into the unequal ability of citizens to exercise voice, as well as a bifurcated social protection system, where demand-driven social insurance exists in the centres, while supply-driven social assistance targets the peripheries. In the new millennium, the latter have been significantly expanded but this does not address the underlying economic structure that continues to limit the social policy capacity of the state.

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Natural resources, structural change, and industrial development: Local content in Zambia—a faltering experience?

Abstract: This study has been prepared within the UNU-WIDER project on 'Natural resources, structural change, and industrial development in Africa' as part of a larger UNU-WIDER research project on 'Jobs, poverty, and structural change in Africa'.

Cited by 5 publications

References 9 publications

Beyond ‘Africa rising’: Development Policies and Domestic Market Formation in Zambia

Beyond ‘Africa rising’: Development Policies and Domestic Market Formation in Zambia

Local Content Policies in the Mining Sector in Zambia: A Synthesis of Its Benefits

The Colonial Legacies of Copper Dependence: Inequality and Bifurcated Social Protection in Zambia

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