policy-insights-88-geipel-392f837944100207.pdf

This policy brief examines the challenges of measuring and reporting local procurement in the African mining sector. It argues that aggregate spending figures often mask a lack of genuine local value addition, as many 'local' suppliers are merely importers. While some governments and international standards are beginning to demand more granular data, the document highlights a significant gap between current reporting practices and the data needed to steer effective economic policy.

• Aggregate local procurement figures often overestimate economic benefits because they include spending on local companies that simply import and resell goods or international firms with local offices staffed by expatriates.
• A 2014 study by the Zambian Chamber of Mines and the International Council on Mining and Metals revealed that while 80% of procurement for goods was reported as local, approximately 95% of that spend was actually on imported goods, with only $87 million of $1.75 billion going to locally manufactured goods.
• Many African local content regulations are not fit for purpose because they mandate the procurement of goods and services from domestic suppliers without requiring that those items be produced in-country.
• South Africa's 2018 Mining Charter is noted as an exception for focusing on the production dimension, requiring that at least 70% of total mining goods procurement spend (excluding non-discretionary expenditure) be on South African manufactured goods.
• Corporate reporting on local procurement remains limited and often lacks the granularity needed for policy use; the Responsible Mining Index 2020 found that only about half of the largest mining companies track and publicly disclose some information on national or supranational procurement.
• There is an increasing trend toward more detailed reporting driven by international frameworks, such as the World Gold Council’s Responsible Gold Mining Principles (2019), the Initiative for Responsible Mining Assurance’s Standard (2018), and the Mining Local Procurement Reporting Mechanism (LPRM) launched in 2017.
• Some countries are beginning to use the Extractive Industries Transparency Initiative (EITI) to report procurement data; for example, Senegal's 2018 Reconciliation Report included a breakdown of local procurement spending and the number of local versus international suppliers.

APA

South African Institute of International Affairs (n.d.). policy-insights-88-geipel-392f837944100207.pdf. https://saiia.org.za/wp-content/uploads/2020/07/Policy-Insights-88-geipel.pdf

Chicago

South African Institute of International Affairs. policy-insights-88-geipel-392f837944100207.pdf. n.d. https://saiia.org.za/wp-content/uploads/2020/07/Policy-Insights-88-geipel.pdf.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=policy-insights-88-geipel-392f837944100207.pdf |url=https://saiia.org.za/wp-content/uploads/2020/07/Policy-Insights-88-geipel.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairsndpolicyinsights88geipel392f837944100207pdf, author = {{South African Institute of International Affairs}}, title = {{policy-insights-88-geipel-392f837944100207.pdf}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2020/07/Policy-Insights-88-geipel.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }