ABSTRACT

This chapter looks at the evolution of the approach to economic diversification, through the mechanism of linkages with the resource sector, to support growth and diversification in resource intensive developing economies. It focuses on developing economies in sub-Saharan Africa that have seen large investments in their mining sectors and the resultant, or lack thereof, developing linkages from the extractive sector. A local content clause was increasingly included in mining contracts, and the emphasis on supporting local firms escalated. Corporate Social Responsibility evolved from charity-orientated functionality to supplier development programs, community employment generation and even contributions to the larger health and education structures of economies. The procurement practices of mining companies reflect their operational needs and only a certain segment of their procurement spend can be allocated to potential local suppliers. These products and services are largely non-critical, non-complex products.