Concepts & Topics

Global and local extractive industry

Quarry in Namibia

The Agenda 2030 defines inclusive economic growth as a key sustainable development goal (SDG 8). Mining is a major economic driver in many of the resource-rich partner countries of German development cooperation. It creates direct jobs, generates government revenue and offers business opportunities for local companies. It thus has a central role to play in supporting sustainable development. In resource-rich countries, it is particularly important to establish stable and reliable frameworks that are conducive to investment and require extractive industries to be sustainable at all levels. First and foremost, this requires the diversification of the local economy, the establishment of local value chains, and the provision of targeted support for small and medium-sized enterprises (SMEs). Many developing countries are adopting local content requirements (LCRs) in order to boost the local value added and, to develop their domestic supply sector and processing industry long term. LCRs are policy measures which require companies to source a specific percentage of their components in-country and/or employ a certain number of local staff. But how effective are these measures? To what extent are inputs genuinely procured or processed locally? What proportion of value added is domestic – and how much is not? How much are mining companies spending on social investment, and to what extent are they complying with local content requirements (LCRs)? The Sector Programme Extractives and Development provides assistance to Germany’s development partners to capitalise on the extractives sector’s potential by boosting their domestic economies and becoming a driver of sustainable local development. 


Industrial Gold Mine

LION stands for Local Investment Opportunities in Natural Resource Projects. The innovative policy tool was developed by BGR to support local suppliers, policy makers, and the private sector with empirical data to design effective local content policies more precisely. The model visualizes an estimated procurement spend of 6 billion USD annually in the Copperbelt and 2.5 billion USD annually in Westafrica. more

Mining Investment and Governance Review (MInGov)

Mining livelihoods

The Mining Investment and Governance Review (MInGov) is an innovative instrument designed for the systematic and comprehensive assessment of investment conditions in the extractive sector in developing countries. It takes account of factors such as the legal framework, institutions, procedures, infrastructure and the skills of the labour force. The various aspects are examined to determine their strengths and weaknesses and their significance within the extractive sector. Find out more about this approach. more

Enterprise around Mining

Containers at a mine in Zimbabwe

The aim of the Enterprise around Mining programme is to integrate local small and medium-sized enterprises more closely into the extractive sector. Its potential tasks include interest intermediation between international and local companies in the extractive sector, promoting training and expanding business networks. Find out more about this approach. more

Mining Local Procurement Reporting Initiative

Metal processing

Many developing countries adopt local content regulations in order to boost local value added in the face of foreign competition and to establish a local supply and processing industry in the long term. The Extractives and Development sector programme promotes local content activities by mining companies relating to local content by engaging in the participatory development of the Mining Local Procurement Reporting Initiative. Find out more about this topic. more

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