Lessons from the Supply Chain Visit to the Central African
Republic Genevieve Ennis Hume ! June 8, 2012 | Enhancing the development potential of aSM | World Bank | Washington, D.C.!
Collaborations & Partnerships
Opportunities
Partnership with USAID!
Supporting ASM!
Building Transparent & Traceable Supply Chain!
The Story & Financial Incentive!
Partnership with USAID
Public-Private Partnership (no financial commitment)!
Global Development Alliance (one-to-one financial contribution between USAID and business stakeholders)! Monitoring & Reporting (ensuring compliance of legalities, labor standards, and childrens rights)! Mining Development Experience (equipment rental pools, diamond valuation workrooms, microfinance, training, etc.)!
Supporting ASM
Supporting PRADD mandate to
increase carat volume entering legal supply chain and improving livelihood of artisanal miners! Artisanal diamonds as poverty reduction tool! Research, exploration & geological training! Working directly with foreign investors!
Building Transparent &
Traceable Supply Chain
Strengthen system and integrity of the market at large!
Focusing on quality versus quantity of exports to support feasibility of traceable supply chain! Increasing transparency and traceability through cooperative system! Supporting legal sales (illegal diamond sales decreased from 22% to 8% between 2010 and 2011)!
The Story & Financial Incentive
Increased consumer interest in traceable products, trending towards
connecting the producer with the consumer!
A growing market for artisanal goods and social innovation practices!
New source of rough!
Competitively priced on the international market!
Challenges
System Instability!
Logistics & Policy!
Critical Mass of Product Volume!
System Instability
Lack of a unique, reliable, single-voice partner representing miners
(Federation of Cooperatives)! Lack of trust and latent conflict between stakeholders ! Presence of unlawful actors & risk of exporting illegally purchased diamonds!
Valuation system corresponding to final export evaluation!
Child labour & lack of alternatives for teenagers!
Logistics & Policy
Foreign investors cannot purchase, detain or transport goods incountry!
Security (transportation, detention, and exportation)!
Export tax (paid by buyers or exporters?)!
Failing to follow standards (child labour, etc.)!
Critical Mass of Product Volume
Current production is insufficient!
Lack of guarantee of results on investment!
Workforce, productivity & new geological sites!
Genevieve Ennis Hume!
Hume Atelier | University of British Colombia! Vancouver, Canada! gen@humeatelier.com! 1.604.313.0189!