How can Africa uses it vast mineral resources to underpin social economic challenges? Solutions finally comes....

How can Africa uses it vast mineral resources to underpin social economic challenges? Solutions finally comes....

I think it would be wise to consider the Australian experience when it comes to the levying of royalties and other taxes and equally how those levies flow onto the populace.  One of the difficulties appears to be getting Governments who levy these royalties to spend the money on things that truly benefit communities. I would suggest that you consider a structured approach to the use of funds from mining that hypothecates the money raised to nation-building infrastructure projects. These could include but not be limited; Roads, Rail, Ports, Airports, Water resources, Community Housing, Hospitals and Schools.

Strategic assessment of the proposed projects is absolutely vital to ensure that they can be achieved in a manner that is safe and environmentally/socially benign. A number of programs in Australia were poorly conceived and poorly implemented. This led to massive waste and, in some cases, injuries and death. I would be happy to form a team of Economists, ex-politicians, engineers environmental and social scientists to develop a position paper on this topic. Mark Goldstone ?  Director at Metreo Consulting Perth Area, Australia

Nathalie Ross ?  Senior Science Policy Advisor at Natural Resources Canada CanadaYou cannot look at "Africa" as a whole. The situation is different in every African country. Look at the countries that were successful and learn from them.

Mark Goldstone ? As I suggested earlier in this discussion, a good starting point would be to look at the royalties that companies are paying worldwide. From a purely pragmatic perspective, if African nations want the benefit of their mineral resources then they have to consider that companies could choose to go elsewhere if other countries are cheaper and easier to work with. My suggestion is to find the balance where some projects come on line now and some are just a bit too expensive at this time allowing the resources to be held onto until later

Mark Goldstone ? Its fine to talk about what the money might be spent upon, but first it would be necessary to establish a royalties scheme that on one side meets the expectations of the people, but on the other does not put mining companies off. A review of worldwide royalty approaches could do that. Once that is established and agreed to, across Africa (little point in having your neighbor just across the border charging less) then this can be promulgated and plans for spending the royalties can be established.

Andry Razafindrazaka ?  Provide engineering services for mining industries Mauritius. Mining is of course a huge opportunity to develop African countries but the reality is different. All African countries has a kind of mixture of the following approaches (EITI, Social responsibility, Policies based on PPP, investment plan, good governance plan, ets…) that should have helped them to get add-value from the mine extraction, but in reality, things doesn’t happen. Add values go to different directions. I think that African countries are walking on a very big cake and will continue to stay hungry if nothing is done on training and education. When I visited countries where the average level of education reaches more than HSC level, i notice everywhere good signs of growth that give hope to a better future for the next generation, even if their underground mining quantity is poor.

Adam Wood IEng ?Regional Manager at Joy Global Wigan, United Kingdom Regional Manager at Joy Global - P&H, LeTourneau, Stamler,  Continental

Africa first and foremost need to help themselves. Adopt Anti-corruption policies. Get rid of the religious views from Politics. Band together for energy projects. Work with Mining houses for significant projects and income.So to answer the original question.

  • 1. Team up with your neighbours, there is strength and bargaining power.
  • 2. Get rid of extremism. it does not help African plight for funding of projects.
  • 3. Ensure democracy prevails. But give democracy the best chance to succeed.
  • 4. Dont screw the mining companies who invest billions into these projects. (There is and always will be some corruption. Their is and always will be in the western world. Its just done in different ways)
  • 5. Dont let the mining companies screw Africa. Ensure you get a good deal.
  • 6. Dont expect the mining companies to employ the whole nation. Good operations are run lean. if additional people need employing they should be gardening at the mine entrance or something.

John McIntyre ? I would make a couple of points:  

 This brings me to the question of government. I do not like governments and have slim faith in their ability to achieve anything more than basic administration. However, that basic administration MUST be carried out and a country can only advance sustainably if law and public administration are carried out reasonably effectively and efficiently. Whilst it is true that corruption can be found everywhere, it is also true that it is at its most egregious in a group of nation states which are characterized by widespread poverty and poor investment by the electorate in their government. Most of these are in Africa.The scale of the mining industry is enormous, but margins are thin. From the first day the tax income of the mine must be spent on matters of national priority, although this isn't my area of expertise, I would suggest the following:

  • a) Education, basic schooling, vocational and professional, in that order;
  • b) Public health, again the most basic village level to improve access to clean water and treatment for preventable diseases;
  • c) Transport infrastructure - subsistence farmers can become cash croppers with a sealed road;
  • d) Institutions - courts, police, an electoral commission and a serious anti-corruption commission.
  • 6. Create this base and you will see a host of local entrepreneurs grow up and within two generations your local mineral industry will own more assets overseas than there are local mineral assets owned by foreigners. Your real patrimony is not the hills full of metals, but the children who are now begging for a living because they have neither education, work, nor prospects of either.

Seidou Ali ? service fiscalité minière chez Etat du NigerNiger Géologue d'exploration, Direction des Mines, Service Fiscalité Minière at Etat du Niger

My colleagues, let's renember that african resources are one of the reasons why EUROPE colonise the CONTINENT! This is to say, what ever the independance african countries thought to have, they still are dependant on the external policy.

Natural Resources cannot be managed without colonial "patrons" and the leaders themselves (elected or coup d'Etat opportunists) prefered to empty the public treasors and create a kind of new economic class in their countries. The economic national growth is no more a preoccupation: that is what INVESTORS want giving way to corruption and other forms of aid and assistance.

Hi Ibrahim, I must convey my thanks to you for initiating such a most relevant and important topic.  Profit earned from Minerals can provide a tremendous economic growth to Africa if it transmits to grass root people . Requesting foreign investments and allowing them for major shares would be suicidal . Only the African people can bring their economic growth,and no body else. Political disturbances or corruption are some factors but can never be the sole attributer to make sink a country .

Ibrahim Bah Executive Director at Invest 4 Africa

I believe that while many African are pointing fingers on the mining companies for their lack of sustainable approaches, Africa’s social-economic environment is very different as it faces numerous entry barriers and a dearth of capacity. Yet fundamentally, Africa has to shed focus from simply mineral extraction to much broader developmental imperatives in which mineral policy integrates with development policy. The continent’s vast mineral resources can play a transformative role in Africa’s development only if it builds appropriate social and economic development linkages that meet national and regional development objectives. Such linkages are of course diverse- whether this is with regard to improving equity and transparency in revenue collection and distribution; integrating small scale mining into rural economies, thus improving people’s livelihoods; or linking mineral extraction to infrastructure development and the manufacture of products that support societal needs.

Add your thoughts or follow the next debate . www.invest4africa.org or www.awards4bestpractice.com 

Ibrahim Bah

 

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