A Shortage of Local Partners in Mining FDI Projects in Sub-Saharan Africa: Socio-economic Shortfalls

Abstract

Industrial development is a process that requires advanced technical and managerial skills, as well as a well-trained local workforce. A lack of industrial-level training may explain why sub-Saharan African countries reap only a tiny fraction of the benefits contained in mining contracts signed with major extractive industry players. In a context where politics interferes in everything and prevents the emergence of private giants with capital estimated at tens of billions, and with management teams holding recognised qualifications, technology transfer will remain a utopian dream for a long time to come. The objective is to encourage the countries concerned to foster the emergence of captains of industry with the aforementioned capabilities, to carry out at least 80% of the tasks peripheral to the extractive industry. Comparative approaches and documentary analysis are employed for this work. Strategic analysis forms the basis of our research theory. Four outcomes have been achieved. - Encouraging mineral-producing countries to foster specialised industrial giants. - The state committing to providing them with funding and supporting them in identifying international business opportunities. – Directing human resources towards accredited management training and auditable, transparent financial governance. - Support this entrepreneurial class so that they focus solely on technology transfer.