New KCM procurement system

A Times of Zambia editorial on 30 November welcomes a new procurement policy at Konkola Copper Mines (KCM), Zambia's biggest mining company.

The Times reports that KCM has shortlisted 30 local firms to supply spares and other consumables. All the privatised mining companies have been subject to significant criticism for ignoring the supply arrangements in place when they took over and favouring suppliers from outside Zambia, often from their home countries instead. Much economic activity in the Copperbelt region depended on ‘forwards and backwards linkages’ to the mines. As reported in this blog some months ago, a new system adopted by Mopani Copper Mines (MCM) apparently in an attempt to temper criticism was not welcomed by local suppliers as it was seen as introducing complex and expensive registration conditions that disadvantaged local producers.

In KCM’s case the editorial notes: “The example shown by KCM is one that in its variation could be replicated by various corporates doing business in Zambia.” It goes on, “The refrain in the past has been that local suppliers and manufacturers have not been up to scratch in meeting the volumes, let alone the standards, to supply firms that have international status. This is undoubtedly true, technically speaking. However, as is in every situation where hurdles are encountered, there are always ways to surmount such obstacles. One way would be to offer some of the local suppliers scaled down ranges of goods to be supplied at reduced volumes. They would then have to graduate slowly as they build up capacities. On the part of the suppliers themselves they could pool resources to enable them set up bigger manufacturing bases to achieve volumes.”

KCM's 'Doing Business With Us' section of their website doesn't seem to include any information on the new process, and if / when I hear any more about it, I will post again her.

Let’s hope the project works well. Comments, as always, welcome.