CBM TEC, Kitwe
ZAM WORKSHOP: LOCAL CONTENT IN ZAMBIA MINING SECTOR
Overiew
1. Private Enterprise Programme Zambia
2. PEPZ Business Linkages Programme
a. Identification and recruitment of potential suppliers
b. Business Diagnostic Exercises
c. Areas of the organization assessed
d. Summary of assessment results for local suppliers to the mines
e. Types of support
f. B2B online Platform
Private Enterprise Programme Zambia
• GBP 14.5 million 5 year SME development programme which aims to support the emergence of transformative SMEs that can create jobs and help diversification of the Zambian economy;
• Funded by UKAID and implemented by DFID;
• Launched in December 2014;
Background to the programme
Goal of PEP-Z:
• A Zambian private sector capable of delivering inclusive growth through increased private investment and employment creation in the economy
Objectives of PEPZ
OUTCOME INDICATORS • Policy influence - Models of engagement with
private sector demonstrated by PEPZ and taken up by government and development partners
• Investment - Additional investment by MSMEs • Value addition - Increased value addition by
MSMEs supported by PEPZ • Jobs - Additional FT jobs created by MSMEs
directly or indirectly. GENDER: 40% jobs created for women!
• Awareness - Increased percentage of Zambian adult population with positive views twds entrepreneurship
Objectives of PEPZ
• Business Plan Competition (BPC): support new start-ups and help innovative businesses grow, generating wealth and creating jobs. And raise the profile of entrepreneurship in Zambia;
• Business Development Services (BDS): improve access to markets, governance, management and business planning services for transformative MSMEs to access loan finance and grow;
• Business Linkages Programme (BLP): facilitate linkages between large businesses and MSMEs and help the latter supply the large businesses competitively so they can grow and create jobs;
• Impact Investment: provide patient capital, TA and mentoring support to investment-ready MSMEs capable of transformative growth to increase competitiveness and create jobs;
The four components
Four related components
PEPZ Business Linkages Programme
Partner with anchor companies, BMOs such as ZAM & BMO
Sign MoUs on collaboration in creating local supply base;
MoUs so far signed with Chibuluma Mine, KML, KCM and already working with MCM
1. Matching Anchor Companies to Local Suppliers
Business diagnostic to assess needs
Management Improvement Plan & BLP support package - Addressing supplier capacity gaps through training, mentoring & coaching, grants - certifications & standards and management information systems
Sign Performance agreement with SME
2 Address Information Failures
Establish Business to Business online platform that gives partner anchor companies direct access to supported SMEs and vice versa
ZAM Annual Local contact show case, seminar & awards
3 Crowding in Financial Institutions
MoUs with GroFIn, ZANACO, DBZ, Stanbic & Kukula
MoUs with providers of Credit Enhancement Instruments e.g. African Trade Insurance Agency
Steering Committee membership
Three pronged strategy for supporting local suppliers
PEPZ Business Linkages Programme
The supplier matching process
Identification and recruitment of potential suppliers
• Over 50 SMEs so far have been identified, associated with the following Anchor companies:
• Shoprite • Mopani • Chibuluma • Kalumbila • Sun International
• Minimum requirements for SMEs included in application;
• Should have a PACRA number • Comfort later from a bank • Owners/managers demonstrate innovativeness and ability to grow
business • VALUE ADDED GOOD/SERVICE
Business Diagnostic Exercises
• What is a Business Diagnostic? • Approach to appraising the capabilities of SMEs to fulfil the anchor firms
purchasing requirements. • Due diligence exercise looks at issues such as regulatory compliance, law suits
et
• Two experts carry out business diagnostic interview - one focused technical issues and the other management issues; – A score out of 100 is assigned to management/leadership, marketing
& sales, HR, Marketing, Finance, production, QM, Health & safety & risk management to which a predetermined weight is applied to arrive at an overall summary score;
• Product/service viability – assess the feasibility & development impact of the local sourcing opportunities from anchor companies; – Results of a business diagnostic are combined with viability
assessment;
Business assessments are precursor to PEPZ support
Areas of the organization assessed Performance benchmarks Description
Management & leadership Clear goals exist with management having the capability as well as systems to not only execute but also course correct where required
Marketing & sales Clear knowledge of target customer(s) & product/service positioning as well as marketing plan with adequate staffing to execute
Human Resources Existence of staff establishment with job description, contracts, suitable incentive structure, recruitment and succession planning, gender, statutory compliance as well as staff development
Finance How well is management able to monitor financial performance and is there a written accounting policy as well adequate internal control
Products/Services and Operations Value adding products and services, capacity utilization, use of up to date technology, utilization of resources including shifts, ability to satisfy orders on time and maintenance of equipment
Quality Management Quality control systems and is quality management certification in place
Environmental & Health and Safety Good house keeping, health and safety management systems, use of PPE and ladders etc
Management of Risk (business) Business risk identification and mitigation
Management of Risk (Technical) Technical risk identification and mitigation
0%
10%
20%
30%
40%
50%
60%
70%
80%
ASSESSMENT CATEGORY AVERAGE SCORE
ASSESSMENT CATEGORY AVERAGE SCORE
Summary of assessment results for local suppliers to the mines
Types of local suppliers to the mines assessed
Rubber lining services
10%
Pole & Timber Processing
10%
Grinding media 10%
Heavy duty engine rebuilding
10% Welding, metal fabrication &
civil works 30%
Air systems 10%
Clay brick manufacturing
10%
Foundry, machining &
metal fabrication
10%
SME Categories
Suppliers to the mines belonging to varying categories have so far been assessed
PEPZ Business Linkages Types of Support
Training – technical/management
Coaching/mentoring Grants for quality &
information management systems
Credit enhancement to facilitate A2F
Searchable profile on www.zamb2b.com
One or a combination of the types of support below are available to local suppliers
WWW
B2B Online Platform – www.zamb2b.com
B2B online platform
• www.zamb2b.com
– Is an online searchable database which will serve two purposes: • Allow large corporate businesses (anchor firms) to find SME suppliers
manufacturing/producing local inputs that they can buy;
• Profile, vetted and supported local SMEs that produce local inputs for large corporate businesses (anchor firm);
– Site tested and software acceptance issued to developer in March 2015
– Population of the site pending inclusion of terms of use • Draft terms of use in the process of being finalized after which an internet savvy lawyer
will review;
– Plan to officially launch site with in October during manufacturing week; • PR campaign being planned between now and launch date
– DEMONSTRATION OF THE WEBSITE
B2B Website is up and running
Home page with info on what can be done on the site & FAQs
You can register through the site as an anchor firm
You can register through the site as a supplier
The home page once logged in
What the supplier profile will look like
Anchor firms such as mining companies will also be able to post tenders
Thank you.
Q&A