AFRICA FOCUS

America , and 9 % in Europe . Oceania and Latin America contribute 7 % each to the global mining mix .

To develop mining in Africa , governments must create an enabling business environment that attracts miners . And mining companies must embrace technology and automation to enhance mining practices .

Major Factors Driving Mining in Africa The mining industry has undoubtedly been a critical driver of growth throughout history , from the iron and bronze ages to the modern information era . For African countries , there are various drivers depending on the degree to which nations adopt new technologies and policies . According to the Policy Center for the New South report , these drivers can be divided into macroeconomics , governance , and operations .

The macroeconomic drivers are financing and tax incentives , and international investment . As the global trend of mineral royalty tax rises , most African countries have maintained a stable tax regime . This will help mining companies plan correctly for the future . They have also attracted more investment . According to Deloitte , more than half of the 29 major mining projects identified met their investment needs through international stock exchanges . Thanks to access to capital , the continent ' s minerals are open to interested global parties .

On the governance front , there is a need to drive transparency and accountability in the sector to avoid the resource curse or the negative externalities . Also , initiatives and policy movements , such as the Extractive Industries Transparency Initiative ( EITI ), are critical to growing and improving the natural resource sector . The same report reveals

that the relative logistics-related cost of mining in Africa is estimated to be 250 % of the world average because of infrastructure gaps , especially in transit and energy networks .

Regarding operations , there is a need to invest more in infrastructure development even though there ' s been an increase . There are opportunities for more . As Deloitte estimates that between 2003 and 2030 , over 830 infrastructure projects will be undertaken , and approximately $ 50 billion will be invested in mining projects during the same period .

Opportunities In Africa ' s Mining Industry In 2018 , 44 African nations signed an agreement establishing the African Continental Free Trade Area ( AfCFTA ), which was launched in 2021 to facilitate trade in goods , services , and the movement of people .

18 November 2022