Zambia a mirror of global value chain practices

The Zambian copper mining sector provides good ground to compare how companies based in different countries approach their global value chains (GVCs), according to the 2013 World Investment Report by the United Nations Conference on Trade and Development (Unctad). It says North American, European and South African buyers have aligned their supply chain practices to global practices that are increasingly dominant in the mining sector. These are characterised by emphasis on quality, lead times and trust as key market requirements, with support and cooperative practices for suppliers to improve their management and technological competences. Chinese buyers are considered result-oriented buyers, but their supply chain is governed more at arm’s length. Indian buyers are more price-driven, but by adopting low entry barriers and low performance requirements, they ensure high levels of competition in the supply chain.