Sasol willing to pay more to favour local suppliers in Mozambique

Will Green is news editor of Supply Management
6 August 2014

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6 August 2014 | Will Green

Oil firm Sasol is working to increase the number of local firms in its Mozambican supply chain, a conference was told.

Benjamim Cavel, local content manager for Sasol in Mozambique, said the company had to “lead by example” and it was working with local suppliers to bring them up to the level where they can compete with multinationals.

Speaking at the CIPS Pan African Conference in Zambia, he said: “Sasol Upstream Oil and Gas intends to grow the economy of Mozambique. One way is to integrate the local supplier market into supply chain activities.

“Sasol has been in Mozambique for 10 years. There’s a need for Sasol to lead by example.”

Cavel said they would pay more to support a local supplier over a multinational. “Sasol would consider paying up to 10 per cent more to a local supplier over an international firm where goods and services were of comparable quality, availability, quantity and competitiveness in order to contribute to the development of Mozambique,” he said.

The company is also building a supplier database that will be developed through SRM and category management, while supplier awareness days will be held covering how to do business with Sasol.

“We are working with teams to see the extent local content can be brought into supply chain processes,” said Cavel.

“We are also taking on supplier development. We intend to develop suppliers so they can compete.”

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