Local procurement with LION

Virtual Training on LION with colleagues from the DR Congo

LION Training_content

17.09.2020 |

The "Extractives and Development" Sector Programme, together with the consulting firm Kaiser Economic Development Partners, conducted a virtual training for the tool Local Investment Opportunities on Natural Resource Projects (LION), which informs policy making on local procurement in resource-rich countries. After the DRC Mining Week 2019, during which LION was presented, the think tank Cellule Technique de Coordination et de Planification Minière (CTCPM) from the Democratic Republic of Congo (DRC) expressed great interest in incorporating LION into its own work. Ten colleagues from CTCPM were therefore invited to attend a three-day virtual training to learn about the background of LION, its strategic applicability, usage and functionalities. The aim of the training was to support CTCPM employees in using, managing, and annually updating the tool on their own in the future. For this purpose, a version of LION was developed that can also be used and updated on Microsoft Excel. This makes it easier for CTCPM to access LION-generated information. With the help of this instrument, the consulting services for the Congolese government are substantiated with quantitative data in order to put the issue of local value addition on the national political agenda in DRC.

In addition to this training, a high-level workshop is planned in the coming weeks, which will bring together representatives of the DRC government, civil society, and mining companies to further advance the issues of local value creation, local procurement, and local employment. The workshop will also discuss LION's role and how this tool can be used to better align the local economy with the needs of the extractive sector.

Further information regarding LION: The data for both the Copperbelt and West Africa have been updated, so that current figures on procurement volumes of the mining companies for the years 2018 and 2019 are now available. Between 2017 and 2018, a strong increase in total procurement expenditures can be observed in the Copperbelt. In 2019, however, the procurement spending slightly decreased. The total expenditure of the mining companies in the Copperbelt recorded in LION was approximately 7 billion USD in 2019. In terms of individual procurement categories, electricity, spare parts and operational expenditure, and fuel and lubricants remain the largest cost items in the procurement of mining operations. In West Africa, total procurement spending in 2019 was approximately 5 billion USD and the main procurement categories were fuels and lubricants, reagents and spare parts and operational expenditure.

For further information, please contact Thomas Grupp.

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