Recrutement d’un consultant pour l’évaluation des options pour la création d’une unité de réglementation du contenu local pour le secteur minier de la Zambie, Côte d’Ivoire

REQUEST FOR EXPRESSIONS OF INTEREST

AFRICAN DEVELOPMENT BANK

Immeuble CCIA, Abidjan, Côte d’Ivoire

African Natural Resources Center

E-mail: [email protected]       

Telephone: +225 27 20 26 32 13

Department issuing the request: AFRICAN NATURAL RESOURCES CENTER

Position: Individual Consultant

Place of assignment: Home based work

Duration of the assignment:  30 Man days delivered in four (4) Months

Tentative Date of commencement: June 2021

Deadline for applications: 21^st May, 2021

Applications to be submitted to: Maali Harrathi ([email protected])

With a copy to: JERRY AHADJIE ([email protected])

Any questions and requests for clarifications may be sent to: JERRY AHADJIE ([email protected])

TERMS OF REFERENCE

CONSULTANCY SERVICES FOR ASSESSMENT OF OPTIONS FOR ESTABLISHING A LOCAL CONTENT REGULATORY UNIT FOR ZAMBIA’S MINING SECTOR

1. Introduction 

The African Natural Resources Centre (ANRC) is a non-lending entity of the African Development Bank (AfDB). The AfDB established the Centre to support Regional Member Countries (RMCs) to maximize development outcomes derived from their natural resources. The scope of the centre combines renewable (water, forestry, land and fisheries) and non-renewable resources (oil, gas and minerals). 

The ANRC’s desired outcomes are better stewardship of African natural resources through good governance, containment of adverse social and environmental impacts, enhancement of linkages with domestic economies and equitable resources access. To achieve this, the Centre advises the Bank’s RMCs on selected aspects of natural resource management, to enable them maximise the social and economic value obtainable from the exploitation of natural resources.

The Government of Zambia is working to improve legal and regulatory frameworks of the mining sector and intends to establish a Local Content Regulatory Unit to enhance local content implementation in the mining sector. To achieve this objective, the Government has requested for support from the African Development Bank (AfDB) to assist in conducting a study to assess suitable options of establishing the Local Content Regulatory Unit.

2. Context 

Zambia’s economy is dominated by contributions from copper mining. The mining sector accounts for more than 70% of the country’s foreign exchange earnings and about 14% of the country’s GDP. The mining sector is also a significant employer accounting for more than 82,000 people in recent years, the second largest after Government employment¹. The current planning and policy frameworks are driven by Vision 2030, which expresses the collective aspirations of Zambians to become a middle income industrial economy by 2030. In line with this, the mining sector has been identified as one of the key pillars to facilitate creation of downstream value added and localizing upstream inputs. 

A recent African Development Bank funded linkage study in Zambia’s mining sector indicated the mining procurement value chain is worth between US $2-4 billion annually in goods and services². However, the bulk of the goods consumed by the mines are in fact imported into the country by foreign owned firms. Very few are manufactured in Zambia. Mine support services too are mostly provided by foreign companies, rather than Zambian owned firms. The low involvement of Zambian firms currently even though a weakness, is also an opportunity to localize the rather large procurement value chain which is expected to support greater job creation and industrial growth.

To address the local content challenges in the mining sector, the Ministry for Mines and Minerals Development requested support from the African Development Bank (the Bank) to develop frameworks to deepen local content implementation. The Bank first supported the Ministry to develop a local content framework which identified some opportunities for further studies. As a result, a second study was conducted on opportunities to create

• GRZ (2017). ‘7th National Development Plan 2017–2021: Accelerating Development Efforts Towards Vision 2030 Without Leaving Anyone Behind’. Lusaka: Ministry of National Planning.

• AfDB 2019. Opportunities for Creating Domestic Linkages in Zambia’s Mining Industry (Unpublished) domestic linkages in the mining and allied industries. The main objective of the study was to evaluate the mining procurement value chain with a view to identify opportunities for localizing input goods and services, in a manner that supports linkage formation with other economic sectors. The main findings of the study included the following:
• The estimated annual consumption of the selected goods and services was about US$2.4 billion. The main components were about US$1.3 billion in core mining goods and US$942 million in core mining services. The two categories make up 93% of total annual procurement and are hence the most likely targets for localization;

• Opportunities identified include metallic products, electrical goods, chemicals, explosives, industrial minerals (clay and sand) and services (haulage, catering, security and cleaning);

• Procurement remains skewed in favour of foreign suppliers: The key reasons include: inadequate capacity of local firms to manufacture and supply inputs of acceptable quality and quantity; differential treatment of foreign and national firms (Imported finished products by Original Equipment Manufacturers (OEMs) are tax exempt, whilst national firms pay duty on imported input materials for manufacturing); foreign firm supply chain structures (mining input goods and services supplied by OEMs either directly or through their agency offices registered in Zambia); lack of access to finance and generally use of outdated and inefficient plant; high input costs which make local goods uncompetitive and unfair competition practices including supply of cheap and inferior Chinese products. Based on the findings, key policy recommendations included:

• Reducing the cost of manufactured goods by facilitating the revamping of existing manufacturing industries or establishing new ones to produce intermediate feedstock locally for metallic products, electrical goods, chemicals & explosives and refractory inputs. Government needs to target investment growth in these clusters through: targeted incentives to attract investment; infrastructure provision for iron ore mining to feed into the iron and steel cluster among others;

• Address unfair competition by introducing margins of preference for locally manufactured goods and services; preventing dumping through import tariffs and requiring all major foreign contractors to reserve a proportion of procurement for local goods and services; and

• Providing support at firm level to Zambian Small and Medium Enterprises (SMEs) for some of the identified opportunities. Support includes access to finance through a structured SME loan and equity fund and facilitated access to technology and expertise for Zambian entrepreneurs. The newly proposed study seeks to support the Ministry of Mines and Minerals Development to establish appropriate structures to enhance local content implementation in the mining sector to take advantage of the huge localisation opportunities. This was a key follow up recommendation from the second study on creating linkages in Zambia’s mining sector.

3.0 The Need for a Local Content Regulatory Unit in Zambia’s Mining Sector

The policy framework for local content in Zambia is driven by Vision 2030, which targets a middle income industrial economy by 2030. The key aims are job creation, economic diversification and citizens’ participation in a framework of domestic industrial linkages between mining and other economic sectors. This is further supported by the seventh National Development Plan, the 2013 Mineral Resources Development Policy, the 2018 Industrial Policy, the Employment Policy and the Science & Technology Policy. Despite these important frameworks, it has however been observed that some of them are not aligned with the local content ambitions. For example, the Employment and Labour Market Policy, restricts the use of foreign labour to categories of skills not available among Zambians. Yet the Employment Act does not contain any provisions limiting the employment of expatriates not just in the mining industry but across all sectors. Meanwhile the Minerals and Mining Act does not also provide the necessary alignment to address the incoherence.

Based on the incoherencies in some of the policy and legal frameworks, the Ministry drafted a Statutory Instrument (Local Content Regulations³) to address the identified gaps, as well as facilitate implementation of the recommendations of the study on “opportunities for creating domestic linkages in Zambia’s mining sector”. The objective of the Statutory Instrument is to support Zambia’s industrialization and economic development by:

• Promoting maximization of value-addition and job creation through the use of local expertise, goods and services, business and financing in the mining industry value chain in Zambia;
• Developing local capacities in the mining industry value chain through education, skills transfer and expertise development, transfer of technology and know-how and active research and development programmes;
• Achieving a minimum local employment level and in-country spend for the provision of goods and services in the mining industry value chain;
• Achieving and maintaining a degree of control by Zambians over economic assets; and
• Providing for a robust and transparent monitoring and reporting system to ensure delivery of local content policy objectives.

The achievement of the above objectives requires the setting up of a regulatory unit/institution with a coherent structure and well capacitated for efficient local content delivery. This could be in the form of establishing a specific Local Content Division embedded in a Government Ministry or setting up a National Content Board for the extractive sector.

It is within this context that the Ministry of Mines and Minerals Development approached the African Natural Resources Centre (ANRC) for support in enhancing local content implementation in Zambia. The current study will however be largely constrained to justification of the appropriate vehicle to use, recommending the structure and logistics (human and material) as well as training/capacity needs for maximizing local content in the mining sector.

4.0 Objective

Conduct an assessment to provide modes for the establishment of a Local Content unit/institution for efficient implementation of mining frameworks (including the local content regulations yet to be passed) to increase local participation in the mining sector. Subsidiary objective includes options for a structure, benchmarking and logistical needs.

5.0 Scope of Work

The scope of work will cover the following among others:

• Conduct benchmark studies of local content units, national content boards and similar establishments in Africa’s extractive sector and elsewhere to provide options for Zambia based on her aspirations and in line with the Africa Mining Vision;
• Propose governing structure for the recommended option;
• Propose staffing, logistics and capacity needs of the recommended option;
• Key responsibilities of the proposed Unit/Division;
• Propose requisite linkages between the Unit/Division and other establishments (government and industry);
• The regulations are expected to give maximum effect to the implementation of the Minerals and Mining Act, 2015.
• Develop draft templates for local content information collection and analysis. This, among others, should be based on the third, fourth, fifth and sixth schedules of the draft regulations. The templates should also be designed in a format that can serve as input into the development of an IT based M&E system;
• Provide recommendations and roadmap for the establishment of the Local Content Unit/Division/Department.

6.0   Methodology and Duties of the Consultant

The study will entail desk research, complemented by online/field interviews with relevant regulators, executives and industry analysts.

The duties and responsibilities of the consultant will include the following:

• Prepare an acceptable work plan for the work;
• Review, analyse data and undertake the activities in accordance with the scope of work;
• Undertake interviews with relevant stakeholders and distribute questionnaires where necessary
• Prepare inception, progress and draft final reports with input from relevant stakeholders in Zambia and within the African Development Bank;
• Prepare PowerPoint presentation for validation workshop with the Ministry of Mines and Minerals Development in Zambia; and
• Analyse and integrate all stakeholder comments into the final report.

The consultant will propose the report outline/structure which will be discussed at the inception

meeting. The Consultant will be supervised by a Task Manager from the African Natural Resources Centre of the Bank, as well as a team from the Ministry of Mines and Minerals Development in Zambia.

7.0 Outputs/Deliverables

The consultant(s) will produce detailed reports covering the scope of work. These will include:

• Inception Report
• Progress Report
• Draft Report for stakeholder validation
• Final Report (including roadmap for the establishment of the Local Content Unit/Department)

8.0 Timeline and deliverables

The consultant will be awarded a contract of up to 30 – man days. However, the study will be undertaken within a period not exceeding four (4) months. Activities, detailed deliverables, and deadlines are summarised in the table below.

9.0 Consultant Qualifications:

The consultant must meet the following criteria:

• At least a Master’s degree in Mining, Geosciences, Supply Chains Economics, Strategy, Mineral Value Chains, Mineral Law or other relevant related qualifications;
• At least 15 years’ experience working in policy, strategy and technical advisory roles in Africa, with at least 10 years in Africa’s Mining Sector;
• Good knowledge of copper, cobalt and gold value chains;
• Experience with sector and project cycle management with the logical framework approach;
• Knowledge of a computer based supply chain management databases is an advantage
• Experience in carrying out similar consultancy work;
• Demonstrated excellent written and oral communication skills in English.

10. Consultant Selection Criteria

The Consultant will be selected in accordance with the African Development Bank’s Implementation Manual relating to the Procedures for Acquisition of Consulting Services funded by the Administrative or Capital Expenditure Budget of the Bank Group. The consultant shall be evaluated based on the following criteria:

Only candidates earning 70% and above will be shortlisted and requested to submit financial proposals.

Applicants are to submit a cover letter, resume, copies of academic certificates. Appendix 1 gives a template for submission of CVs.

11.0 Service Conditions

The African Development Bank conditions for retaining short-term consultants will apply.

Appendix 1:

Please attach an updated Curriculum Vitae on the basis of the template below:

MODEL CURRICULUM VITAE (CV)

Key Qualifications:

Please provide (i) a summary of your experience and training highlighting the most relevant for the proposed assignment, and (ii) the responsibilities which you exercised. Utilise one half-page maximum.

Education (University Level and above only):

Professional Training:

Employment Record:

Begin with your most recent employment. For each job since your Master Degree achievement, please indicate:

• Name of the Employer
• Type of Activity/Business of the Employer
• Title / Function
• Place of Employment
• Brief Description (three lines maximum) of main accomplishments and responsibilities

Reference:

Please indicate the name and address of three persons with no family relationship with yourself, familiar with your character and titles.

I hereby certify that the responses which I provided above are all, to the best of my knowledge, true, complete and accurate. I acknowledge that an inaccurate statement or essential omission in a personal declaration or another document required by the African Development Bank might result in the rejection of my application, termination of my Contract or any other administrative sanction by the Bank. The African Development Bank may verify any statements which I made in this application.

Date: ____________

Signature: