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ABSTRACT
This article analyses policies and strategies adopted by Botswana, Zambia and Zimbabwe in order to develop linkage industries from the mineral sector. Whilst Southern Africa has a strongly integrated regional value chain for equipment and services related to mining, linkage development strategies in the three countries under examination have been formulated within narrow domestic frameworks. The evidence suggests that the success or failure of a resource-based industrialisation approach is country and sector specific, requiring the deployment of different and appropriately tailored policy instruments. Our research uncovered important cross-country variations in terms of opportunities created by specific mineral commodities, ambition and scope of industrial and linkage development strategies, and institutional capabilities to ensure enforcement and coherence with other policies.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1 This article draws heavily on Fessehaie et al. (Citation2016).
2 By 1917 the USA had over 7500 mining engineers in the country.
3 Over time, local content in the Nigerian oil industry has increased from 3–5% in the 1970s, to 20% in 2004 and 39% in 2009 (estimates by Oyejide and Adewuyi, Citation2011).
4 A recent contribution in this area has been the Making the Most of Commodities Programme (Morris et al., Citation2012).
5 See http://www.miningweekly.com/article/copperbelt-capital-equipment-supply-must-be-mutually-beneficial-to-ensure-sustainability-argues-researcher-2016-02-12/rep_id:3650. Accessed January 2017.
6 The Mines and Mineral Development Policy (Citation2013) aims to address the issue of local content.
7 Non-Ferrous China Africa (NFCA) from China, although relatively small in terms of copper output, has been fast-growing and has invested in the Chambishi Zambia–China Economic and Trade Cooperation Zone, an investment worth US$800 million, inclusive of the Chambishi Copper Smelter, acid plants as well as a copper semi-fabricates manufacturing plant.
8 Many Zambian and regional suppliers have, however, been able to do business with the Chinese mining companies (Fessehaie and Morris, Citation2013). These firms supply critical equipment and are highly competitive.
9 See Fessehaie and Morris (Citation2013).
10 This intervention, however, is not included in the Value Addition and Beneficiation Cluster Matrix (Government of Zimbabwe, 2013:103–13).
11 The objectives of Government of Zimbabwe’s (Citation2012) Industrial Development Policy 2012–16 are: contribution of manufacturing to gross domestic product of 30% by 2015, 50% of total exports by 2015, capacity utilisation of 80% by 2016.
12 The Act states that an applicant for a special mining lease should submit a plan which includes information on the extent to which local goods and services will be utilised in the development. Bullet point (xii) of paragraph (e) of sub-section 3 of section 158.
13 Other mining-related policy measures include a draft mining exploration bill, rebuilding the national geological survey units to ensure government has leverage in negotiating mining rights, and support for small-scale mining sector.
14 More recently, there have been also initiatives to develop local suppliers. Launched in 2014, the Chamber of Mines’ Business Development Forum represents the mining industry’s objectives to develop local suppliers whilst creating efficiency and cost savings for the mining companies. The Chamber also coordinates purchasing power to support local companies and attracts FDI from foreign OEMs (Botswana Chamber of Mines, Citation2014). Tokafala, established in 2013 and funded by Anglo American De Beers and Debswana, is the leading private programme which supports enterprise development.