AFRICAN DEVELOPMENT BANK

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1 AFRICAN DEVELOPMENT BANK Immeuble CCIA, Abidjan, Côte d Ivoire African Natural Resources Center M.HARRATHI@AFDB.ORG Telephone: Department issuing the request: African Natural Resources Center Position: CONSULTANCY SERVICES FOR THE DEVELOPMENT OF A STRATEGY FOR DOMESTIC LINKAGES IN GUINEA S MINING SECTOR. Place of assignment: Home-Based/Conakry, Guinea Duration of the assignment: 30 person days Tentative Date of commencement: 03 September 2018 Deadline for applications: 20 August 2018 Applications to be submitted to: Maali Harrathi (M.HARRATHI@AFDB.ORG PS: Application must include the name of the Consultant Position that you are applying for Any questions and requests for clarifications may be sent to: Maali Harrathi (M.HARRATHI@AFDB.ORG) TERMS OF REFERENCE CONSULTANCY SERVICES FOR THE DEVELOPMENT OF A STRATEGY FOR DOMESTIC LINKAGES IN GUINEA S MINING SECTOR 1. Background. The African Development Bank (AfDB) places renewed emphasis on Natural Resources Management as a transformational platform. In order to respond to the challenges facing sustainable management and use of Africa s natural resources, the AfDB created the African Natural Resources Centre (ANRC). The ANRC is a non-lending knowledge building entity whose mandate is to assist African governments in maximising development outcomes derived from their natural resources. It does so by helping these governments boost their capacity to achieve inclusive and sustainable growth from such resources. African countries are endowed with significant mineral resources, but many countries have benefited very little from the extraction and utilisation of these resources. In certain countries, linkages between the mining sector and the broader economy have been developed (e.g. Botswana, Morocco and South Africa). The Africa Mining Vision (AMV), the continent s overarching policy framework for the mineral sector, which is supported by the AfDB, defines clear strategies for the development of linkages from the mineral sector, and for generating mining investments, infrastructure development and mineral-based diversification. The ANRC s own research on the potentials for utilising resource revenues for sustainable development in African countries shows the importance of prioritising social expenditure, domestic procurement, skills development and technical upgrading in the natural resource sector. Guinea, like other African countries, has taken important steps to domesticate the AMV through the alignment of its national mining policies and strategies to the Vision. However,

2 there is much more to be done to break the typically enclave nature of mining, by building strong linkages between mining sector and other key economic sectors to support the country s ambitions for mineral-based development and industrialisation. Given the foregoing, the Government of Guinea is seeking to develop domestic linkages between Mining and other strategic economic sectors such as Agriculture and Energy. 2. Need for the Strategy Guinea possesses large reserves of bauxite, undeveloped high-grade iron ore, as well as gold and diamonds. In addition, Guinea has fertile soil, ample rainfall, thus tremendous agriculture potential. The country also has several West African rivers either starting or passing through its territory. These rivers, which include Senegal, Niger, and Gambia have enormous hydropower potential and the country could be a major exporter of electricity from this potential. Gold, bauxite, and diamonds are Guinea s main exports. Guinea's unexplored mineral reserves also have the potential to propel the country's future growth. However, Guinea has not been able to fully benefit from its rich mineral resources, due to lack of adequate infrastructure and an acute electricity challenge to the power-intensive mining sector. According to the Africa Economic Outlook 2018, the real GDP growth for Guinea was 6.4% in 2017 and is projected to be an average of 6.2% in , driven by strong performances in mining, agriculture, and construction. Furthermore, the government wants to accelerate its economic growth by exploiting the existing linkages between Mining, Agriculture, and Energy. In Guinea, the location of mines sometimes overlaps heavily with areas earmarked for agricultural development, thus disrupting plans for farming, which employs 70% of the active population. To offset the incurred losses, the mining companies through Corporate Social Responsibility (CSR) programs often support agriculture by providing training programs to farmers in order to increase their productivity using among others; labour efficiency and crop diversification. In the power sector, government in collaboration with mining companies wants to develop the abundant off-grid energy resources available in the country to supply affordable, sustainable, and reliable energy so that the mining sector can be self-sufficient. It is on this basis that the Government of Guinea requested for support from ANRC to undertake a study on the development of domestic linkages between mining and other economic sectors in Guinea. The creation of these linkages is crucial to reducing the high dependence on mineral revenues, and building resilience to external shocks, in order to set the country on the path towards economic diversification and industrialisation. 3. Objectives The main objective of the study is to define a strategy for increasing domestic linkages between the mineral sector and key sectors of the economy such as agriculture and energy, in order to promote sustainable development and economic diversification. Using the methodology and framework of the Africa Mining Vision (AMV), the specific objectives of the study are as follows: i) Identify strategies and provide policy advice on mineral beneficiation, value addition and local industrialisation, building on existing, relevant policy mechanisms and institutions. ii) Provide strategies for the development of an array of linkages including backward, forward and side-stream linkages between the mineral sector to other key economic sectors, especially agriculture and energy. iii) In line with the mineral linkages development strategy, identify the key constraints, resources and opportunities for the generation and realisation of the linkages. 2

3 iv) Provide policy advice on infrastructure development and access as part of the mineral linkages development strategy, particularly for local communities and areas adjacent to mining operations. 4. Scope of the assignment Drawing on the national approach to the development of mineral linkages in the AMV, the study will address the following critical questions: i) What is the current status of the policy, legal and regulatory environment for industrialisation, beneficiation and value addition? ii) Estimates of the local value added in the purchase of goods and services by the mining industry iii) The current state of physical infrastructure (transport, power, water, ICT, etc) and strategies to address infrastructure constraints iv) What are the critical strategic mineral feedstocks into the domestic economy (manufacturing, infrastructure, agriculture, energy, etc)? v) Is there a local content policy? vi) To what extent do the procurement policies of mining companies constrain backward linkages (local content)? vii) What are the strategies for promoting STEM skills, technology development, research development and innovation (RDI)? viii) How does the country ensure national policy harmonisation (mineral, industrial, investment, infrastructure, trade, agricultural, fiscal, education and ICT policies)? ix) What policies / strategies / instruments / actions are there to improve the business environment in the country? x) What are the policies, strategies and initiatives for utilising regional integration initiatives (ECOWAS, AfCFTA, etc.) to promote linkages and diversification? 5. Methodology and Duties of the Consultant The study will entail desk research complemented by interviews with policymakers, mining companies and other stakeholders, and the collection of data and information at relevant locations within Guinea to cover the scope of the assignment. The study should address gender and women s empowerment issues at all relevant stages. A consultant will be hired to undertake the assignment. He/she will report to the task manager at the ANRC; he/she will validate the different stages of the study with the focal points of the Ministry of Mines & Geology and the Société Guinéenne du Patrimoine Minier (SOGUIPAMI). The duties and responsibilities of the consultant will include; i) Preparing an acceptable work plan for the study ii) Carrying out the desk review iii) Collecting data and information from reports, policy documents and electronic sources iv) Undertaking interviews with relevant stakeholders and administer questionnaires v) Prepare inception and draft final reports with input from relevant AfDB departments and stakeholders. 3

4 vi) Preparing PowerPoint presentations for validation and dissemination workshops and vii) Consolidation of the stakeholder comments into the final report. 6. Expected Results The major deliverable of the assignment will be a strategy for the development of linkages between the mining sector and other vital sectors of the economy, including energy and agriculture. Specific results include: i) Policy options for the development of specific mineral-based linkages, namely backward, forward and side-stream linkages as part of an economic diversification programme ii) Greater knowledge of the opportunities and constraints for local beneficiation in the mining sector, industrialisation, job creation and growth. iii) Identifying the infrastructure needs and constraints that should be addressed as part of the mineral linkages development strategy, in order to drive private sector development in Guinea. iv) Identifying the roles of various public and private sector actors in the development and realisation of mineral-based linkages in Guinea. v) Policy mechanisms for coordination between key line Ministries (i.e. the Ministry of Mines and Geology, Ministry of Agriculture, and Ministry of Territorial Administration and Decentralization, etc.) on mining sector governance and regulation, to support the development of mineral-based linkages in Guinea. 7. Timeframe The Consultant will be expected to work for no more than 30 person days. The assignment is to be completed in no more than 6 months, with the following activities and outputs: Activity Output Duration 1 Contract signing Signed contract 0 2 Consultant s pre-project meeting by skype/telephone Agreed work plan, formats and report template 0 +2 weeks 3 Desktop study and understanding of ToR Inception Report weeks 4 Review existing information on the mining and other strategic sectors of the economy including agriculture and energy. Undertake interviews with policy makers, mining companies, and industry experts among others 5 Address the comments from the project team and stakeholders 6 Consultants report consolidation at Validation meeting Draft Report to be reviewed by project team and national stakeholders Revised Report submitted and approved Final Project Report weeks weeks weeks 7 Dissemination of report weeks 4

5 8. Consultant Qualifications The consultant must meet the following criteria: i) Possess at least a Master s degree in Economics, International Development, Public Policy, Mineral Economics or disciplines related to Natural Resource Management. ii) Have at least eight (8) years of public or private sector experience relevant to the mineral sector. iii) Have a good knowledge of relevant policy, legal and institutional frameworks relating to mining, domestic linkages and/or local content in the mineral sector. iv) A track-record of research and thought leadership in the area of mining, linkages and economic diversification. v) Experience in designing industrial policies in Africa will be an advantage. vi) Excellent written and oral French with a working knowledge of English. 9. Service Conditions AfDB conditions for retaining short-term consultants will apply. 5