Abstract

The global value chain has become an important strategy to link local suppliers to the various commercial activities that are performed during the production of goods and services. The chain actors involved join together in distinctive processes to produce a product in a win-win situation. This means that even the marginalized local suppliers are given an opportunity to supply along the chain and earn income. However, due to the complexity nature of the value chains, local suppliers continue to face challenges to derive some benefits from the chains due to unknown barriers. The objective of this study was to find out the major barriers that suppliers face in the mining global value chain in Zambia. The analysis was based on survey data set obtained from 350 purposively sampled suppliers who are members of the mining suppliers and contractors association of Zambia. Exploratory factor analysis was used to find the barriers affecting suppliers in the mines. The results revealed public and private sector barriers as well as individual supplier capacity barriers. The study also presented some major policy implications for the mining global value chain in Zambia. In addition, the study proposed areas for further research to be done on a broader data set from other mining areas in other countries to validate the findings of this study.

Key words: Global value chain, suppliers, mines, small, medium enterprises.