18. EBUKA HARRISON EZE
INTRODUCTION
Africa is naturally endowed with vast mineral resources. It consists of 54 countries with approximately 1.2 billion people in a land area of 30.37 million sq km large enough to contain over seven countries combined. The U.S., China, India, Japan, Mexico, and many European nations, put together will not equate the geographical footprint of Africa. Interestingly, 30% of the world's mineral reserves rest in Africa. Despite these endowments, the continent still suffers from underdevelopment, extreme poverty, volatility, amongst others. In 2020, Africa zoomed into recession with a Gross Domestic Product contraction of 2.1% . Like every other sector, the mineral sector has been hit by the global pandemic; about 30 million Africans were pushed into extreme poverty in 2020. Against this backdrop, policymakers must consciously work towards actualizing the Africa we want. For this sector, it stems from changing mindsets, promoting local beneficiations, strengthening legal and institutional frameworks, to fostering intra-African trade through the African Continental Free Trade Area (AfCFTA). Therefore, this essay seeks to proffer solutions on how the mineral resources can be utilized to promote sustainable value addition for all Africans.
BODY
Mineral resources are the occurrence of solid materials of economic interest in or on the earth’s crust in such form, grade, quality, or quantity that there are reasonable prospects for eventual economic extraction. This sector is vast; its value chain involves exploration and extraction, mining, beneficiation/refining, casting, branding, and marketing. Contrary to some of Africa's beliefs, this sector is not limited to mining and commodity trade alone. It goes beyond this to outright beneficiation into more useful products such as spoons, nails, and reinforcement steel bars for bridge construction. Exploring this value chain is of great economic importance to all Africans. For instance, a steel-producing country could gain over 2000% if it exports the product in a refined form as steel rather than in its raw state.
For years, emphasis has been only on the extraction and export of raw materials rather than stimulating domestic value chain in most African countries. As a consequence, some courses such as geoscience, mining, and metallurgical engineering have been shunned and despised. In light of this, the need for a rapid change in mindset becomes a key concern. To begin with, parents should not discourage their children, particularly girls, who are passionate about the sector/courses. Also, policies and frameworks should be in place to foster capacity building for youths and women in mining especially in areas of negotiation, business plan, and vocational skill development. Regional institutions should employ digital technologies in engaging civil society. Public awareness programs in every tertiary institution across the continent using videos and audio-visual aids to raise a host of informed citizens should be considered. Besides, inspired by a dire need to engage young Africans and unveil their roles in the mineral sector, the MADINI Convention was birthed. Therefore, Africans should engage and take hold of this novel opportunity.
Additionally, bad governance and corruption undermine sustainable growth. Corruption takes different forms such as bribery, money laundering, and financial terrorism. It erodes trust in government, undermines social contracts, destroys linkages with other sectors, and impedes investments. Through legislative frameworks, African states should establish a Fiscal Responsibility Act which has the power to disclose information on public revenues and expenditures through an independent auditing system—private or government institution—to conduct investigations. Conventions such as the United Nations International Convention against Corruption and the African Union Anti-Corruption Convention as well as standards such as ISO 37001 that specifies anti-bribery measures and controls should be adopted. Moreover, regional and continental approaches include active support for the implementation of transparency and accountability efforts such as the Extractive Industries Transparency Initiative (EITI).
Furthermore, a mineral ecosystem that links the government/ministry, industry, and educational institution will stimulate local beneficiation, investment, and social and environmental sustainability within the sector. The ministry should enact mineral and mining laws geared toward environmental, social, and governance sustainability; fund Research and Development projects; focus on integrating mineral exploration data for investment, research, and academic purposes; foster safety and formalization of small scale mining operations; formalize mineral buying centers where small scale miners can sell their products at a proper price; establish investment promotion and trade department for incentives and tax reforms; and partner with civil society, private sector, and stakeholder to design mining-specific credit enhancement instruments (especially for women without collateral). Industries should comply with regulatory frameworks from the ministry; set up gender policies to encourage women in mining; provide training programs for local communities on health and safety, and provide social and educational interventions for the host community. Educational institutions should train students in line with global best practices. They should work with industries to update curriculum; encourage Science, Technology, Engineering, and Mathematics (STEM) education; prepare students to be employable, and support indigenous innovation/technology. Regional governments must collaborate, create a common platform for trade and solid minerals, extend railway lines through leveraging the continental free trade agreement, and create a platform for technological exchange and protection on mining investment.
Lastly, this sector is capital intensive. Therefore, the ministry should collaborate with banks such as Exim Bank of China and other development banks to provide sufficient funding for the sector based on agreed terms. Efforts should be in place to engage local investors. This can be achieved through incentivization and proper dissemination of transparent geoscience information and data. And the ministry should strengthen linkages with other institutions such as the Miners Association and Association of Women in Mining so they could benefit from these funds directly.
CONCLUSION
Policymakers can make or mar a nation or continent. With the right policies and collaborations, Africa's mineral resources will be beneficiated locally to produce the machines, tools, and infrastructures needed to develop the continent. However, we must flee from obsolete traditional perception, address corruption and weak political will, and focus on local value addition through sustainable frameworks. This way we can harness our natural resources to catalyze inclusive growth and development.
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African Development Bank (2020, November 18). Implementing the African Continental Free Trade Area (AfCFTA) Agreement: Assessing Country Readiness and the Implications for Capacity Building: Opening Speech by Prof. Kevin Chika URAMA. https://www.afdb.org/en/news-and-events/speeches/implementing-african-continental-free-trade-area-afcfta-agreement-assessing-country-readiness-and-implications-capacity-building-opening-speech-prof-kevin-chika-urama-39093
African Development Bank (2021). From Debt Resolution to Growth: The Road Ahead for Africa. African Economic Outlook 2021. https://www.afdb.org/en/documents/african-economic-outlook-2021
Ibid.
Canadian Institute of Mining Metallurgy and Petroleum (CIM). (2014, May 10). CIM Definition Standards - For Mineral Resources and Mineral Reserves. Prepared by the CIM Standing Committee on Reserve Definitions. Adopted by CIM Council. Montreal.
Department of Minerals and Energy (2007) An overview of value systems of selected ferrous mineral commodities. The Republic of South Africa.
World Bank. (2021, October 25). Combating Corruption. https://www.worldbank.org/en/topic/governance/brief/anti-corruption
