Define local – you need to engage with the community relations team and the outcome of tool 1, to agree on the parameters you consider ‘local’
Consider local procurement as a method to ‘kick start’ local economic investments
Conduct a company self-assessment. Based on this assessment you will get an understanding of the gaps needed to be addressed to implement an effective procurement program
Identify the business case. For local procurement to be integrated, the business case needs to be clearly understood and agreed across the company
Define local again – it is critical you agree a definition of local for your local procurement activities
Create a local procurement policy which can be applied to both your own business activities and those of your contractors
Look at local employment opportunities, are there steps that can be taken to help improve opportunities for local employment within your project? Setting clear criteria for eligibility can be a critical element of managing in-migration
Is there a local employment policy or a national requirement to prioritise local employment?
Community skills audit (p145) – look at community skills and consider opportunities where these can be used or built upon through an education program
Contractor requirements – do you have clauses in your tender process that favour companies who employ locally or that require contractors to train local employees?
Are there community development programs you could support to help increase the likelihood of community members finding sustainable opportunities?
Diversify opportunities to avoid over dependency. This can be achieved though providing low-cost loans to other businesses, business advice and mentoring services not solely related to procurement activities, training courses and support services. Look at www.sirolli.com for an approach which relies upon never offering advice until being asked, thereby avoiding a handout relationship
Assisting growth and development of local suppliers through collaboration and capacity-building programs
Southern Mozambique - BHP Billiton’s Mozal aluminium operation was the first major development in the country in the past 50 years. By 2010, Mozal’s aluminium ingots accounted for over half of the export earnings in Mozambique. To date, Mozal continues to rank first place on the top 100 companies in the country.
Enterprise Facilitation on the Sirolli Institute website at: www.sirolli.com
IFC, A Guide to Getting Started in Local Procurement, Washington DC, 2011.
IFC, Strategic Community Investment: A Good Practice Handbook for Companies Doing Business in Emerging Markets, Washington DC, June 2010.
IFC, Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good Practice Handbook, Washington DC, February 2010.
Various Oil, Gas, and Mining Sustainable Community Development Fund resources on local procurement are available at: https://www.commdev.org/topics/local-supplier-development/