The global value chain has become an important strategy to link local suppliers to the various co... more The global value chain has become an important strategy to link local suppliers to the various commercial activities that are performed during the production of goods and services. The chain actors involved join together in distinctive processes to produce a product in a win-win situation. This means that even the marginalized local suppliers are given an opportunity to supply along the chain and earn income. However, due to the complexity nature of the value chains, local suppliers continue to face challenges to derive some benefits from the chains due to unknown barriers. The objective of this study was to find out the major barriers that suppliers face in the mining global value chain in Zambia. The analysis was based on survey data set obtained from 350 purposively sampled suppliers who are members of the mining suppliers and contractors association of Zambia. Exploratory factor analysis was used to find the barriers affecting suppliers in the mines. The results revealed public and private sector barriers as well as individual supplier capacity barriers. The study also presented some major policy implications for the mining global value chain in Zambia. In addition, the study proposed areas for further research to be done on a broader data set from other mining areas in other countries to validate the findings of this study.
The use of the global value chain approach is becoming the vogue as a poverty reduction strategy ... more The use of the global value chain approach is becoming the vogue as a poverty reduction strategy in the word today. This approach requires participants to upgrade and meet international requirements. Unfortunately, Zambia has not been active in its development plans to use this approach which links small and medium enterprises (SMEs) to the value chain activities. The main objective was to determine the effect of upgrading support from NGOs, Government and Private Mining companies on SME inclusion in the mining global value chain. The relevant global value chain literature was reviewed to give insight on how upgrading support enhances SME inclusion. A random sampling was conducted among the SMEs from the mining area to determine whether government policy support, NGO support and private mining support help SMEs upgrade to meet international requirements. The findings show that SMEs do not receive enough support from government and mining companies to upgrade despite the presence of government agencies and mining supplier development programme but from NGOs. The study recommends that government must form a mining commission of Zambia to implement SME policy support programmes, mining companies must create the Supplier Development Working Group to implement SME support programmes and NGOs must partner with the government and the mines to improve SME competitiveness and enable them to be included in the mining global value chain to supply and earn sustainable income.
There has been lots of questions on why there is continued escalating poverty levels in Zambia de... more There has been lots of questions on why there is continued escalating poverty levels in Zambia despite the presence of the commercial activities from the mining global value chain. These commercial activities would be helpful in linking small & medium enterprises (SMEs) to participate in the high grade market and supply for sustainable income. Unfortunately, there are barriers of entry that limit supplier entry and participation. The Zambian mines are marred with such barriers as tax compliance, registration processes, licensing requirements, technology upgrade, standards requirements, capacity requirements, managerial competencies, competition barriers and financial constraints. The main objective of the study was to perform a regression analysis and establish the predictor barriers to supplier participation. A survey questionnaire with 350 respondents showed a Cronbach reliability test of 0.812 indicating a good internal consistence. Further Statistics from the SPSS output show th...
Asian Journal of Business and Management, Oct 20, 2019
There has been lots of questions on why there is continued escalating poverty levels in Zambia de... more There has been lots of questions on why there is continued escalating poverty levels in Zambia despite the presence of the commercial activities from the mining global value chain. These commercial activities would be helpful in linking small & medium enterprises (SMEs) to participate in the high grade market and supply for sustainable income. Unfortunately, there are barriers of entry that limit supplier entry and participation. The Zambian mines are marred with such barriers as tax compliance, registration processes, licensing requirements, technology upgrade, standards requirements, capacity requirements, managerial competencies, competition barriers and financial constraints. The main objective of the study was to perform a regression analysis and establish the predictor barriers to supplier participation. A survey questionnaire with 350 respondents showed a Cronbach reliability test of 0.812 indicating a good internal consistence. Further Statistics from the SPSS output show the following p-values; tax (0.036), standards (0.033), individual capacity (0.01), financial capital (0.00) as predictors of supplier participation to the mines while registration (0.524), licensing (.267), technology upgrade (.079), managerial skills (.853) and competition (.383) showing that they are not predictors of suppliers' participation to the mines. This means that tax, standards, individual capacity and financial capital sit statistically significant and influence the functioning of the mining value chain
There has been lots of questions as to why there is continued marginalization of small and medium... more There has been lots of questions as to why there is continued marginalization of small and medium enterprises (SMEs) in the mines despite local content policies. A recent report regarding estimates of input goods and services to the mines in Zambia show an accumulation requirement of US$5 billion annually and the share of domestic firms in the mining market is less than 4 per cent, while that of indigenous firms is about 1 per cent. This raises lots of questions as to what extent local content help SMEs to supply to the mines. Local content policies are legal requirements to empower local SMEs so that a share of factors of production in form of labour, supplies of goods and technology required at various stages of the value chain is sourced from the domestic economy. A survey of 350 SMEs answered a questionnaire to determine how local content policies help them to supply to the mines. It was found out that the local content only helped SMEs to improve their skills and capacity and not to help them supply to the mines or employment of the local people. The study recommends that a mining commission of Zambia be formed with executive powers to enhance the inclusion of local SMEs to the mines. Further, a local content committee and economic empowerment must be institutionalized to improve the position of SMEs and enhance economic empowerment respectively
Zambia Revenue Authority Act Number 23 of 1994 mandates Customs to manage export and import forma... more Zambia Revenue Authority Act Number 23 of 1994 mandates Customs to manage export and import formalities for international trade. In Zambia, there has been poor customs administration due to numerous pieces of legislations which conflict in their implementations. In the recent past the Zambian government has strived to improve Boader formalities through the introduction of the Single Window System (SWS) which cuts down on a number of formalities but integrates them into a single window with various components including information communication technology (ICT), trade regulation (TR) and trade facilitation (TF). In this study, the researcher used a deducted approach to test the relationship between Single Window System and Customs administration. Data was collected using a survey method and 350 respondents comprising various stakeholders at Victoria Boarder answered a questionnaire. The study showed overall that ICT, TR and TF sit statistically Significant to determining Customs Admi...
The global value chain approach has become a useful strategy to reduce poverty in the mining area... more The global value chain approach has become a useful strategy to reduce poverty in the mining area by forming linkages among various players. This approach gives an opportunity to all stakeholders to participate in any suitable activity along the value chain. Once SMEs enter the value chain, they supply and earn sustainable income. Unfortunately, the mining value chain in Zambia has become restrictive due to many public sector barriers such as tax, registration, standards, financial and licensing protocols. The main objective was to determine the impact of public sector barriers on SMEs participation in the mining value chain. The global value chain literature focusing on barriers of entry was reviewed to give insight on how these barriers affect SMEs participation. A random sampling was conducted among the SMEs from the mining area to determine the extent to which tax, registration, financial, technology, standards and licensing barriers impact on SME participation in the mining value chain and which barrier ranks highest. The findings show that public sector barriers greatly affect SME inclusion in the mining chains. In the hierarch, registration processes, followed by financial, technology, and tax barriers respectively affect SMEs inclusion. The study concludes that public sector barriers greatly affect SME participation while specifically licensing and standards have a lesser effect. The study recommends a review of government policy and enhance economic empowerment to SMEs for them to participate in selling to the mines.
The global value chain has become an important strategy to link local suppliers to the various co... more The global value chain has become an important strategy to link local suppliers to the various commercial activities that are performed during the production of goods and services. The chain actors involved join together in distinctive processes to produce a product in a win-win situation. This means that even the marginalized local suppliers are given an opportunity to supply along the chain and earn income. However, due to the complexity nature of the value chains, local suppliers continue to face challenges to derive some benefits from the chains due to unknown barriers. The objective of this study was to find out the major barriers that suppliers face in the mining global value chain in Zambia. The analysis was based on survey data set obtained from 350 purposively sampled suppliers who are members of the mining suppliers and contractors association of Zambia. Exploratory factor analysis was used to find the barriers affecting suppliers in the mines. The results revealed public and private sector barriers as well as individual supplier capacity barriers. The study also presented some major policy implications for the mining global value chain in Zambia. In addition, the study proposed areas for further research to be done on a broader data set from other mining areas in other countries to validate the findings of this study.
The use of the global value chain approach is becoming the vogue as a poverty reduction strategy ... more The use of the global value chain approach is becoming the vogue as a poverty reduction strategy in the word today. This approach requires participants to upgrade and meet international requirements. Unfortunately, Zambia has not been active in its development plans to use this approach which links small and medium enterprises (SMEs) to the value chain activities. The main objective was to determine the effect of upgrading support from NGOs, Government and Private Mining companies on SME inclusion in the mining global value chain. The relevant global value chain literature was reviewed to give insight on how upgrading support enhances SME inclusion. A random sampling was conducted among the SMEs from the mining area to determine whether government policy support, NGO support and private mining support help SMEs upgrade to meet international requirements. The findings show that SMEs do not receive enough support from government and mining companies to upgrade despite the presence of government agencies and mining supplier development programme but from NGOs. The study recommends that government must form a mining commission of Zambia to implement SME policy support programmes, mining companies must create the Supplier Development Working Group to implement SME support programmes and NGOs must partner with the government and the mines to improve SME competitiveness and enable them to be included in the mining global value chain to supply and earn sustainable income.
There has been lots of questions on why there is continued escalating poverty levels in Zambia de... more There has been lots of questions on why there is continued escalating poverty levels in Zambia despite the presence of the commercial activities from the mining global value chain. These commercial activities would be helpful in linking small & medium enterprises (SMEs) to participate in the high grade market and supply for sustainable income. Unfortunately, there are barriers of entry that limit supplier entry and participation. The Zambian mines are marred with such barriers as tax compliance, registration processes, licensing requirements, technology upgrade, standards requirements, capacity requirements, managerial competencies, competition barriers and financial constraints. The main objective of the study was to perform a regression analysis and establish the predictor barriers to supplier participation. A survey questionnaire with 350 respondents showed a Cronbach reliability test of 0.812 indicating a good internal consistence. Further Statistics from the SPSS output show th...
Asian Journal of Business and Management, Oct 20, 2019
There has been lots of questions on why there is continued escalating poverty levels in Zambia de... more There has been lots of questions on why there is continued escalating poverty levels in Zambia despite the presence of the commercial activities from the mining global value chain. These commercial activities would be helpful in linking small & medium enterprises (SMEs) to participate in the high grade market and supply for sustainable income. Unfortunately, there are barriers of entry that limit supplier entry and participation. The Zambian mines are marred with such barriers as tax compliance, registration processes, licensing requirements, technology upgrade, standards requirements, capacity requirements, managerial competencies, competition barriers and financial constraints. The main objective of the study was to perform a regression analysis and establish the predictor barriers to supplier participation. A survey questionnaire with 350 respondents showed a Cronbach reliability test of 0.812 indicating a good internal consistence. Further Statistics from the SPSS output show the following p-values; tax (0.036), standards (0.033), individual capacity (0.01), financial capital (0.00) as predictors of supplier participation to the mines while registration (0.524), licensing (.267), technology upgrade (.079), managerial skills (.853) and competition (.383) showing that they are not predictors of suppliers' participation to the mines. This means that tax, standards, individual capacity and financial capital sit statistically significant and influence the functioning of the mining value chain
There has been lots of questions as to why there is continued marginalization of small and medium... more There has been lots of questions as to why there is continued marginalization of small and medium enterprises (SMEs) in the mines despite local content policies. A recent report regarding estimates of input goods and services to the mines in Zambia show an accumulation requirement of US$5 billion annually and the share of domestic firms in the mining market is less than 4 per cent, while that of indigenous firms is about 1 per cent. This raises lots of questions as to what extent local content help SMEs to supply to the mines. Local content policies are legal requirements to empower local SMEs so that a share of factors of production in form of labour, supplies of goods and technology required at various stages of the value chain is sourced from the domestic economy. A survey of 350 SMEs answered a questionnaire to determine how local content policies help them to supply to the mines. It was found out that the local content only helped SMEs to improve their skills and capacity and not to help them supply to the mines or employment of the local people. The study recommends that a mining commission of Zambia be formed with executive powers to enhance the inclusion of local SMEs to the mines. Further, a local content committee and economic empowerment must be institutionalized to improve the position of SMEs and enhance economic empowerment respectively
Zambia Revenue Authority Act Number 23 of 1994 mandates Customs to manage export and import forma... more Zambia Revenue Authority Act Number 23 of 1994 mandates Customs to manage export and import formalities for international trade. In Zambia, there has been poor customs administration due to numerous pieces of legislations which conflict in their implementations. In the recent past the Zambian government has strived to improve Boader formalities through the introduction of the Single Window System (SWS) which cuts down on a number of formalities but integrates them into a single window with various components including information communication technology (ICT), trade regulation (TR) and trade facilitation (TF). In this study, the researcher used a deducted approach to test the relationship between Single Window System and Customs administration. Data was collected using a survey method and 350 respondents comprising various stakeholders at Victoria Boarder answered a questionnaire. The study showed overall that ICT, TR and TF sit statistically Significant to determining Customs Admi...
The global value chain approach has become a useful strategy to reduce poverty in the mining area... more The global value chain approach has become a useful strategy to reduce poverty in the mining area by forming linkages among various players. This approach gives an opportunity to all stakeholders to participate in any suitable activity along the value chain. Once SMEs enter the value chain, they supply and earn sustainable income. Unfortunately, the mining value chain in Zambia has become restrictive due to many public sector barriers such as tax, registration, standards, financial and licensing protocols. The main objective was to determine the impact of public sector barriers on SMEs participation in the mining value chain. The global value chain literature focusing on barriers of entry was reviewed to give insight on how these barriers affect SMEs participation. A random sampling was conducted among the SMEs from the mining area to determine the extent to which tax, registration, financial, technology, standards and licensing barriers impact on SME participation in the mining value chain and which barrier ranks highest. The findings show that public sector barriers greatly affect SME inclusion in the mining chains. In the hierarch, registration processes, followed by financial, technology, and tax barriers respectively affect SMEs inclusion. The study concludes that public sector barriers greatly affect SME participation while specifically licensing and standards have a lesser effect. The study recommends a review of government policy and enhance economic empowerment to SMEs for them to participate in selling to the mines.
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Papers by Peter Kanyinji