Download The IFC Oil, Gas and Mining Linkages Program

IFC OGM sme linkages program
The IFC Oil, Gas and Mining Linkages Program
Developing Local Sourcing Platforms
Supported by IFC PEP Africa
What is the IFC Oil, Gas and Mining Linkages Program?
Small and medium sized enterprises (SMEs), if given proper financial and advisory support, can be huge drivers
of economic growth and job creation, especially in emerging economies.
SMEs are often held back, however, because they lack the knowledge, resources and technical expertise needed
to expand and take on larger contracts. SMEs also often lack the financial resources necessary to acquire new
technologies or skills.
IFC, a member of the World Bank Group, supports the growth of SMEs across Africa with a combination of
advisory services and financial support. One way IFC helps smaller businesses grow is through linkages programs
(Local Sourcing Platforms), which link smaller, local businesses into the supply chains of larger firms.
How does the IFC Oil, Gas and Mining Linkages
Program work?
The IFC Oil, Gas and Mining (OGM) linkages program
creates business opportunities for micro, small and medium
enterprises (MSMEs or SMEs) on national, regional and/
or community levels through IFC’s relationship with large
corporates in which IFC has invested.
IFC helps SMEs adopt practices and systems to satisfy the
high standards demanded by large corporations in the oil,
gas and mining sector. When large firms source locally, SMEs
are provided income generating opportunities – as more
opportunities are created, SMEs adopt practices and systems
that improve their efficiency.
Large firms also benefit from this relationship. Legal
requirements often demand that large firms do a percentage
of their business with SMEs to ensure the transfer of
skills and technology and to develop the local economy.
IFC’s OGM linkages program helps companies meet legal
obligations concerning procurement, ensuring they obtain a
social license to operate.
IFC helps clients improve productivity in their supply/
distribution chains by developing and fostering local
suppliers who lack the resources or technical expertise to
improve their product offering, services and productivity.
Ensuring the social and economic welfare of local
communities through income generation is also central to
the program.
IFC OGM sme linkages program
Where does the IFC Oil, Gas and Mining Linkages Program work?
IFC’s OGM linkages program for Africa is targeting IFC investment clients in the oil, gas and mining sector in several
countries across sub Saharan Africa. IFC is implementing two to four year advisory services programs that are increasing local
procurement by strengthening SMEs and entrepreneurs linked to IFC investment clients.
These programs have been implemented in Chad, Guinea, Ghana, Mozambique, Nigeria, South Africa and Zambia.
Sector Activities
Country
Program / Client
Activities
1. Ghana
Ahafo Gold
• Local Supplier Development
• Local Economic Development
• Institutional Capacity Building (includes Business Association, Training of Trainers
and Business to Business Encounters)
• Cross-Cutting Components: Finance Facilitation, Gender Entrepreneurship
Markets and HIV/AIDS
2. Chad
Chad Enterprise Center
Program II:
• Entrepreneurship Capacity Building: creation of Enterprise Center in partnership
with Chamber of Commerce; training of consultants; outreach to Southern Chad;
business linkages with Esso
• Access to Finance
• Business Enabling Environment
3. Zambia
Copperbelt SME Supplier Development Program (CSSDP)
• Train SMEs to meet and comply with industry standards
• Increase mining industries role in local content through institutionalized
procurement policy adjustments, intensified supervision, mentoring
• Diversify markets for SMEs through partnerships with other mining companies
4. South Africa
Lonmin
• Local Supplier Development Program (including a joint mining supplier chain
initiative)
5. Mozambique
Mozlink II
Mozambique SME Linkage Development Program
• Identify common services and products required by industry and localizing
procurement
• Enable local SMEs to meet tender, financial and technical requirements
• Facilitate critical information flows between SMEs, industry, government, and
new markets
6. Nigeria
Intsok
• To contribute to the enhancement of local content in upstream oil and gas
industry in Nigeria
• To upgrade a selected group of companies (that have the potential to become
qualified fabricators for the offshore and sub-sea market) with the required skills
in performing their work according to ISO 9001 Quality Management Systems and
in compliance with the EN729 Quality requirements for welding
• To prepare SMEs for certification and hence enable SME’s to comply with the
safety, environmental and quality standards required by international operators.
7. Guinea
Rio Tinto SIMFER Guinea Alumina
Corporation (GAC)
• Local supplier development
• Creation of local management training market and capacity building for training
firms utilizing IFC Business Edge
• Improved access to information on opportunities in the mining sector
About IFC
Contact:
IFC, a member of the World Bank Group, creates opportunity
for people to escape poverty and improve their lives. We
foster sustainable economic growth in developing countries
by supporting private sector development, mobilizing private
capital, and providing advisory and risk mitigation services to
businesses and governments. Our new investments totaled
$14.5 billion in fiscal 2009, helping channel capital into
developing countries during the financial crisis. For more
information, visit www.ifc.org.
Thilasoni Chikwanda
14 Fricker Road, Illovo Boulevard
P.O. BOX 411552, Craighall 2024
Johannesburg, South Africa
Telephone: +27 11 731 3061, Fax: +27 11 268 0074
Email: [email protected]