Consultancy Services for The Gold Value chain analysis and its potential contribution to national economies

Request For Expressions of Interest


Edition 2:   May 12, 2017 (shown)
Edition 1:   May 12, 2017

General Information

Côte d'Ivoire
   May 12, 2017
   May 25, 2017
   National procurement

Contact information

   Maali Harrathi
AFRICAN DEVELOPMENT BANK Immeuble CCIA, Abidjan, Côte d’Ivoire African Natural Resources Center
Côte d'Ivoire
   +225 20 26 32 13
   Click here


Analysis services   Financial markets administration services   Market and economic research; polling and statistics  

Original Text

1. Introduction
The African Natural Resources Center (ANRC) is a non-lending entity of the African Development Bank (AfDB). The AfDB has established the Center to assist Regional Member Countries (RMCs) to maximize development outcomes derived from their natural resources. The scope combines renewable (water, forestry, land and fishery) and non-renewable (oil, gas and minerals) resources.
The ANRC’s desired outcomes are better stewardship of African natural resources, through good governance, containment of adverse social and environmental impacts, enhancement of linkages with domestic economies and equitable resources access. To achieve this, the Center advises RMCs on selected aspects of natural resources management, policy formulation and implementation in order to enable them to extract greater social and economic value from their development. The long-term objective of the Center is to enhance RMCs’ capacity to improve development outcomes from the sustainable use of renewable and non-renewable resources. In the context of the Bank’s H5s this requires three main work streams. First, the Center’s must deepen extractives knowledge of Bank teams through analytics, internal seminars and a knowledge portal to support lending departments. Second, it provides concrete data on aspect of natural resources including current policies, natural resources trade, value chains patterns structures and potential resource development economic corridors. Third, the Center will support the RMCs in creating an enabling environment and advocate for regional and national policies to achieve the positive development outcomes.
Through analysis of sector value chains and knowledge building on downstream policy trade-offs, the Center will assist RMCs strike the right balance between maximizing revenue from natural resource projects and integrating them into national economies hence contributing to the Bank’s renewed drive towards industrialization.
2. Background
In addition to export earnings, many countries in Africa aspire to derive greater economic value from the raw materials that they produce. One of the most obvious means to achieve this is through downstream processing. By taking advantage of availability of the raw materials, countries can leverage nature’s assets and potentially play to their comparative economic advantage. However, resource endowment alone is
inadequate to afford countries sufficient justification to process materials without the risk of eroding economic value. The prevailing national economic conditions, international trade environment and their negative and/or positive impact upon the continent’s ability to successfully leverage the comparative advantage are major considerations. For instance, there are significant entry barriers to downstream processing for both private firms and governments. This implies that rather than focus only on either the inputs (entry barriers) and outputs (economic benefits) of downstream processing, policymakers should evaluate both to strike the right balance and make informed policy choices. In doing so just as investors need to consider potential regulatory barriers to entry, countries should consider industry specific barriers. Some resources require significant investment to undertake downstream processing but the returns may not match the investment. Assessing these as well as related risks and rewards and ensures design of appropriate interventions such that the expected deliverables are aligned to expectations. Based on this it becomes clear that the call for downstream processing needs greater understanding of these and other considerations.
In view of this, a value chain analysis is a useful tool to avail options and permit assessment of policy trade-offs. An ideal starting point is to rigorously analyze value chains for different resources to determine the type, inputs and scale of economic benefits feasible from downstream activities. To ensure that the information derived from the analysis is useful for decision-making, the analysis should adopt a practical approach by assessing pre-determined economic benefits from selected resources instead of adopting a generic analysis. This is the ANRC approach, which seeks the services of international consultants to conduct an analysis of the value chains for the five types of natural resources with high potential for value addition through downstream processing.
From the Bank’s perspective, the analysis serves an internal and an external purpose. Internally the analysis will add to the level of knowledge in the operations departments as well as in the private sector department (OPSD), especially as relates to the extractives. The knowledge will strengthen capacity to develop sector strategies and contribute to the Bank’s pipeline of public and private sector loans while mitigating investment risk. In the short term, the studies will be part of the Center’s contribution to the Bank’s “enabling environment” work streams for the ‘industrialize, feed and integrate Africa’ strategies.
Externally the study is intended to empower policymakers make informed decisions through enhanced knowledge. Focus will be on enabling RMCs to design industrial development policies and downstream processing decisions based on an analysis of policy trade-off and an understanding of public investments, benefits, risks and rewards.
3. Purpose and desired outcomes
The aim is to provide policymakers with an understanding of the entry barriers, benefits and types of public investments necessary to pave the way for successful downstream processing in the diamond industry. This will be achieved by analyzing the inputs required and outputs feasible from downstream processing activities as relates to gold. Focus will be on evaluating its capacity to generate employment, contribute to public income, support infrastructure development and create domestic linkages at the various stages in the value chain.

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