Mining Sector Urged to Localize Labor and Technical Services to Trim Supply Imports
As Zimbabwe’s mining sector seeks to boost economic resilience and reduce dependency on imports, a renewed focus on local procurement of labour and services has emerged as a vital strategy.
By Ryan Chigoche
This focus comes amid revelations that only 15% of the US$2.1 billion spent on supply imports goes to the local market. Even more concerning, the mining industry continues to import not only manufactured supplies but also labour and technical services that could be sourced locally.
In June 2019, the Government of Zimbabwe approved the Local Content Strategy (LCS) to promote the use of domestic resources across various value chains. This strategy aims to create a supportive ecosystem within industries, aligning with the vision of transforming Zimbabwe into a highly industrialized economy. While there has been discussion on strengthening the local manufacturing industry to reduce the high import bill, labour issues have largely been overlooked. The mining sector still relies on imported labour and technical expertise.
Industry expert and mining economist Lyman Mlambo emphasizes the importance of prioritizing labour issues and reducing the import of technical services as part of the local content strategy.
“Industry needs to reduce imports of technical services and use local resources. This includes Environmental Impact Assessments (EIAs), Social Impact Assessments (SIAs), Mine Closure Plans, feasibility studies, and repair and maintenance services. However, the availability of highly qualified local people and companies is essential to maintain standards,” he explained.
Mlambo also acknowledged that improving local capability requires the country’s educational institutions to meet industry needs.
“Employing locals requires that our educational and training institutions produce high-quality graduates who are employable at all levels. Industry and government share the responsibility to strengthen mining training institutions and review educational curricula to ensure they meet the mining industry’s needs.” With the supply industry being both skill- and capital-intensive, he stresses the urgency of addressing gaps in finance and skills.
Stakeholders recognize that by strengthening local supply chains, the industry can unlock significant economic potential and empower communities, particularly women-led small and medium enterprises (SMEs). This initiative aims not only to create jobs but also to foster sustainable development by leveraging local resources and expertise.
“The upstream supply industry is both skill- and capital-intensive, so we must address both the skills gap and the finance gap,” Mlambo added.
To enhance upstream linkages, it’s essential to establish a common understanding between mines and local suppliers regarding current and projected demand, as well as existing local supply capacities. This approach could help address the information gap through the creation of a comprehensive database.
Furthermore, the government should develop an effective local content policy that realistically and progressively emphasizes local value addition and ownership, with achievements monitored by a dedicated national body, similar to frameworks in Nigeria and Australia.
Companies should also develop local procurement plans for each project in collaboration with the government, which can make critical interventions to ensure effective implementation. Development partners can play a role as neutral arbiters in this process.