The Development Minerals Value Chain Policy Model: The Case of Rwanda in the East African Region

Abstract

The objective of this policy paper is to examine, assess and propose a solid theoretical model that will assist in [1] assessing the current status of development mineral value chains; [2] identifying social economic activities for mining systems, and [3] proposing consistent recommendations on policy options and other incentives necessary to enhance the contribution of the mining sector and their value chains to sustainable social economic development in Rwanda. This is a theoretical paper based on literature reviews on policy models using classical Michael Porter's (1979) Value Chain Model, (VCM) articulating full range of social economic activities – including design, input sources, production, marketing and distribution – businesses conduct to bring a product or service from conception to delivery. Value chain analysis has been a strategic policy tool used to analyze internal firms, sectorial and national operational objectives and strategies given external environments. The policy findings and solution emphasizes the importance of strengthening all optimal mineral-based linkages while resources are extant so as to maximize the developmental and inter-generational impact of those resources. The nation's mining policy objective is to ensure efficient and effective utilization of mineral deposits, explorations, extractions, processing, beneficiations, trades and marketing, and final consumptions systems by national social economic entities such as households, firms and communities. The paper recommends that Rwanda government to develop and achieve the “transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development. The Rwandese must ensure that all social economic entities have to share a common goal of achieving profitability, productivity and optimal cash flow for the entire development mineral value chain. It follows that national development mineral operations management, implemented through value chain management, requires a new, operational and different perspective of relationship management.