Supporting Current Trends In The Value Chain

Clyde & Co's April 2012 'Current trends in the value chain' Commodities Report (Report) analyzed two years of data on M&A in the mining and commodities sector, to illustrate how those businesses were responding to the threat of resource scarcity in the face of rising demand, by moving up and down the value chain.

In this article, we map the trend towards vertical integration identified in the Report as exhibited in Mozambique, the Lusophone rising star of East Africa's natural resource sector.

Going to the source

Current trends¹

There is no doubt that, while companies are keen to secure supply, they are cautious about the amount of capital they are prepared to commit, particularly as the outlook for commodities demand becomes less certain in the short term. As a result more companies are pursuing joint ventures, minority stakes and contractual arrangements such as supply chain collaboration.