Stakeholder Significance
A stakeholder is any person or entity that interacts with your business in a regular and meaningful way.
Regardless of industry, the most important aspect of doing business in Africa is understanding your stakeholders. Often, the easiest parts of doing business in Africa are producing, selling, and transporting product. In fact, the most difficult aspect of business in Africa is understanding the vast network of stakeholders and how best to approach each stakeholder. The failure to deal with each stakeholder group appropriately often spells the difference between success and failure. RMG Minerals bolsters these connections with strategies that are informed by best industry and international practice and are consistent with international norms and laws.
Most businesses in Africa should consider the following stakeholders.
Provincial Government
The role of the provincial government depends to a large degree upon the role the provincial government plays with respect to the national government. The more separate, the more important it is that the company, if not located in the country’s capital city, develops a close relationship with the provincial government. Very often the provincial government can be an ally to the company and a buffer to national government intervention. Accordingly, it is imperative to develop a strong relationship with the head of the province or state you are in as well as any provincial or state ministers.
National Government
The national government is always crucial in facilitating pro-growth investment climates and attracting international industry. Failure to engage the national government to help navigate complex international policy and to establish good relationships across government entities is a missed opportunity that misunderstands the central role national African governments play in business development across the continent.
Civil Society, Ethical Investors, And
Non-Governmental Organizations (NGO)
Civil society organizations and other NGOs often criticize mining operations, causing many companies to dismiss them or be circumspect.
RMG Minerals has a different approach to communications with ethical investors, NGOs and civil society. We advise transparency without divulging trade secrets and taking your lumps because they will happen. We then encourage open, regular contact with these groups to ensure they receive accurate information for their reporting purposes.
Local Government And Community
If your operation is an extractive or a manufacturing facility located in a non-urban area, the local community will play a huge role in developing the company’s reputation in the wider community. In extractives in particular, the local community believes it has rights that surpass the legal rights that are accorded in a convention or contract. This is because the local community views the activities of the extractive company as exploiting the population’s national patrimony. The company is viewed as hauling off valuable resources that have belonged to the people for generations. They will want something in return. Often it is not money or benefits but rather respect and a forum for voicing concerns. The local community must believe that they are better off with you present than they are if you were not there. Failure to achieve this could be fatal to your project. Regular communication is essential to make this happen.
With respect to urban manufacturing plants or urban service providers, the same is true but to a much lesser extent. The threat of community intervention in your operation is much smaller. Nevertheless, having a strategy to integrate your operation into the local community is important and should not be overlooked.
Employees
In addition to being the heart and soul of your operation, employees serve as your first ambassadors to the outside world. Very often the local community, as well as provincial and national governments, will decide how well integrated into the community you are by simply seeing whether your employees are positive about your operation. This makes it most important that employees view the company as fair, transparent and that you operate in their interest. This comes from promoting respect, safety, and security.