Challenges and possibilities of making markets work for the poor: the case of Barrick Gold Mines in Tanzania

The mining sector in Tanzania employs many people and therefore makes huge purchases-both locally and internationally and could make a big market for local products. This research was conducted in Kahama, Tulawaka, and Buzwagi. The objectives were to identify the needs of Barrick, to analyze local capacity to supply these needs, to identify the challenges hampering this capacity and then suggest a local procurement strategy that would add a value to both Barrick and the local SMEs. Visits were made to the mine sites and to the surrounding communities and interviews conducted with key personnel. Important documents were also reviewed. This research has found out that there is a good potential for local entrepreneurs do not meet the quality and reliability standards that cannot be compromised by Barrick. It was also found that Barrick contributes a lot to community development through building schools, wells, a market and a hospital and they employ many local people. They have done a lot of other forms of charity. In spite of these offers Barrick still needs to make a step further and engage in social enterprise development to support the actual economic development. One step is by forming an Entrepreneur Resources and Information Centre. Difficult policy regulations should be dealt with, the business formalization sped up and local entrepreneurs should engage in the formation of companies in order to become competitive.