Local SMEs and the Frustration Gap in Extractives
CLC SOLUTION - Local SMEs and the Frustration Gap in Extractives
Local SMEs and the Frustration Gap in Extractives
🌍Across Africa, local SMEs continue to invest in capacity, training, and compliance; yet only a handful ever break into supply chains of large extractive projects.
This is not a matter of “effort” but of systemic barriers, some already known and documented:
❌Procurement filters that prioritize international track records over demonstrated local competence.
❌ Certification & compliance costs that are disproportionately high for small enterprises.
❌ Information asymmetry, where only a few are aware of upcoming tenders or technical requirements.
❌ Fragmented support programs that lack alignment with operator needs.
While efforts to improve exist, they often remain isolated and symbolic. The challenge is not to reinvent the wheel, but to scale, align, and embed these practices into the very architecture of extractive value chains.
So, what do we need to do? Change some of these narratives:
❎Supplier pipelines exist, but they often favour a narrow group of pre-selected SMEs.
❎Training programs are delivered, but without access to finance or guaranteed market entry, SMEs remain stuck in a “trained but not contracted” cycle.
❎ Procurement scoring frameworks are adjusted, but in many cases, “local” is still weighted too lightly compared to “global capacity.”
➡️ Sustainable impacts must go beyond good intentions. To truly empower SMEs, it is essential for policies to be aligned with a long-term vision, clear milestones, and ideally, a comprehensive plan. This alignment is crucial for supporting sustainable capacity, protecting small teams, and striking a balance between standards and accessibility.
✅Overall, these efforts help build a resilient business ecosystem and protect local businesses from capacity loss and challenging situations.
📩 Turn challenges into opportunities; connect with us today! : contact@clcsolution.com
🌐 www.clcsolution.com
📈www.localcompass.org
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