5. FAITH OLUWATOSIN
FAITH OLUWATOSIN
Africa is a continent that is replete with valuable mineral resources, yet much of what has been done with these vast deposits does not trickle-down to socio-economic development. It is quite saddening that our richness in minerals is in sharp contrast to the poverty in most African households. Most of these minerals are exported as ores or concentrates, as well as crude oil, with no value addition. The mining sector stands aloof like the biblical city of Laish, without reasonable interaction with other relevant sectors of the economy. Hence, the need to map out foolproof strategies that are geared towards using mineral resources for sustainable development.
The Sustainable development goals (SDGs) have adequately encapsulated the expectations of a functional economy. It advocates the need to; end poverty, protect the planet and ensure prosperity for all. This is actually in sync with the African mining vision. However, as lofty as these goals might seem, for it to see the light of the day, necessary structures must be put in place to fast track its actualisation. The mineral resources sector could be likened to the axle of a wheel, which will be definitely useless without the supporting structures – spokes. So, of great import is the unlocking of the complex linkages that would serve as the support systems to make mineral resources truly developmental.
The dearth in infrastructure remains the major limiting factor that must be overcome, in order to ensure that Africa’s explorative sector is value-oriented. For us to be able to use mineral resources to effect socio-economic development, infrastructural development must be prioritised to consume more of the minerals for industrialisation. This can be facilitated via downstream value addition: a system whereby we leverage on the comparative advantage of easy access to raw materials, and by way of resource- processing, we generate the required feedstock for manufacturing and industrialisation. And more importantly, the high rents which mineral resources generate should be channeled into building an efficient infrastructural framework for industrialisation.
Africa is bedeviled by a shortage in necessary skills and resources to support the mineral resources sector, as well as frail institutions. This has made the international mining market to seem as dark waters to the respective negotiators, with foreign agents having the upper hand in negotiations. Hence, the need for capacity building to arm them with a robust knowledge base and further enhance their capacity to make informed decisions in the critical areas of; auditing, monitoring, regulating and improving resource exploitation regimes, and linking the resource sector to the domestic economy, as well as negotiating better and equitable contracts.
Similarly, Africa’s geological map coverage is limited in its scope and reach. This is largely attributed to the fact that its geological survey organizations (GSO) are grossly underfunded and poorly resourced. Eventually, this finds a way of adversely affecting the geological potential of the continent as potential investors will feel reluctant. According to a 2011 study, done by the International Study Group Report on Africa’s Mineral Regimes, it was stated that, “Africa’s share of the global exploration budget, mainly from mining companies, remains the lowest in absolute terms – less than US$5 per square kilometre, compared to US$65 for Canada”. This actually calls for an urgent action both in the national and regional capacities; different countries should work on their respective mineral resources data and then, collate them to develop an integrated geological and mineral information system (GMIS) strategy for Africa. This will help both investors and negotiators to deal on clear and equal terms.
Quite imperatively, the turning point in transforming this sector is a working synergy in mineral, industrial, investment and trade policies across countries, regional blocs and the continent. This multi-sector approach is needed to eradicate the extant departmental silos and prevent unhealthy rivalry across sectors, and as well, engender a pliable interface to build working solutions for development.
In the same vein, removing trade barriers in the regional blocs could serve as a sure means of deepening mineral-driven value chain. Also, the implementation of a continental free trade area, with attendant features such as, tariff protection, subsidies, export restrictions, scorecards and other performance parameters are veritable tools that will foster economic transformation and accelerated industrialisation.
Towards achieving sustainable development for the African mining sector, there is need for an all-inclusive fiscal and policy space, where both the state and non-state actors participate without fear or favour. Africa’s explorative sector has always been designed to accommodate the privileged few, while it deprives the emerging and upcoming ones of the chance to survive. The sector is currently riddled with a surfeit of red tapes and bottlenecks. Illicit financial flows and reckless spending of rents derived from mineral exploitation is continually draining away the resources available to implement developmental policies. Hence, the need for well-managed and transparent exploitation regimes.
Expansion of the policy space can’t be overemphasized. As the cost of governance steadily increases, there arises the need for a public-private partnership; bridging the gap between mining communities, private sector and the government now looks imperative. And as the policy space expands, its overly bureaucratic nature must be scaled down. Incentives such as the potential for operational cost reductions and productivity enhancements should be made available to woo the private sector. This will also pave way for artisanal and small scale mining with a goal to optimising local entrepreneurship and improve people’s livelihoods.
Conclusively, transforming the mining sector is a collective work. It is a vision that must be executed in sync with national policies, regional obligations and continental objectives. As a matter of fact, the full implementation of these policies is hinged on a strong political will and commitment to follow them through. It is also essential that each country approach this framework based on their respective developmental priorities but at the same time, African states need to come together to secure the policy space needed for the incubation of this vision.
