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Browsing: Mining
The answer is in the law and the governance models that these countries approach. The way in which the governments of those countries approach the mining industry is imperative.
In South Africa, the natural resource curse is more pronounced in the sense that while the mining sector has made a few individuals fabulously wealthy, inequality in that country has meant that while the richest of the rich get richer, the poor get poorer.
How can governments approach the mining sector to ensure its development leads to broad-based and shared prosperity for all? The answer is the same. The answer is in the respective governments and the legal frameworks for the mining industries of those countries.…
Southern Africa, East and West Africa saw their flows of FDI rise in 2021. It was only in Central and North Africa that flows of foreign direct investment were flat or declined, respectively. Flows to North Africa fell by 5 per cent to $9.3 billion.
Egypt saw its FDI drop by 12% as large investments in exploration and production agreements in extractive industries were not repeated. Despite the decline, Egypt has the second highest flows of FDI in 2021 on the continent.
UNCTAD reports that it expects FDI flows to increase in North Africa owing to pledges of as much as US$ 22 billion to the region from Gulf states. In Egypt, according to the UNCTAD World Investment Report 2022 tripled green field projects of US$ 5.6 billion and real estate projects of US$ 1.5 billion.
In Morocco, FDI flows increased by 52% to US$ 2.2 billion. This was driven …
This is specifically in the case of South Africa, which has enjoyed the most benefit from the mining sector in the southern region. This benefit translated into further foreign direct investment flows of more than US$ 40 billion in 2021 alone, up from US$ 3 billion in 2020.
This is in contrast with Zimbabwe, which has been an investment pariah for the last two decades. Zimbabwe has not appropriated as much from its mining sector relative to South Africa, especially when viewed through the foreign direct investment lens. According to its central bank, the country garnered foreign direct investment proceeds of US$ 103 million for the year.
Regardless of the poor showing in FDI terms, the country has recorded a 33% rise in export earnings driven primarily by the mining industry to US$ 5.45 billion. This is to show that the mining sector is central to southern Africa’s economic development.…
The Central African Republic was the 186th largest exporter in the world in 2020 with a total export value of US$127 million. The country's exports decreased by US$26.1 million over the past five reported years, from US$153 million in 2015 to US$127 million in 2020.
Rough wood which contributed US$51.9 million in export earnings, gold (US$34.7 million), diamonds (US$14.7 million), sawn wood (US$9.55 million) and refined copper (US$6.66 million) are the most recent export leaders. China (US$50.8 million), the United Arab Emirates (US$37.3 million), Italy (US$12.2 million), Belgium (US$6.84 million), and France (US$4.5 million) are the Central African Republic's top export markets.…
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Transnet Freight Rail, the South African rail logistics giant has few admirers lately. It has disappointed nearly all who rely on it to haul goods from where they are produced to where they are needed.
Infrastructure is critical for the flow of goods and services in an economy. Countries that have efficient infrastructure tend to find that goods and services flow relatively easily and, in a cost-efficient manner relative to their peers whose infrastructure is not in the same condition.
Where infrastructure is not optimally developed there, tend to be bottlenecks and constrictions that hamper the flow of goods and services in an economy. This is so important because you can almost predict how well an economy can and will perform from the state of its infrastructure.
Logistics are central to economic activity anywhere. This component of a country’s infrastructure needs to be in tip-top shape to support the businesses…
Caledonia’s chief executive, Mark Learmoth, speaking of the Bilboes Project called it a “premier gold development project in Zimbabwe and one of the best gold development projects in Africa”.
Through its acquisition strategy, Caledonia is steadily and certainly transforming itself from being a single mine operator to one where it produces a single commodity but operating various mines and mining projects. The company’s boss called this transaction a “transformational asset” and said it was the next step in Caledonia’s journey to becoming a multi-asset mid-tier gold producer.
Prior to its acquisition strategy Caledonia operated a single mine in Zimbabwe which is the Blanket Mine situated in Gwanda, in the Matabeleland South province of Zimbabwe. The company targeted producing 80,000 ounces of gold from its mine in 2022. The acquisition of the Bilboes project, considering that it will produce 168,000 ounces of gold annually over its 10-year life of mine, means …
Paladin is restarting its Langer Heinrich uranium mine in Namibia that was idled due to low prices. Australian uranium producers, including Paladin, have raised close to US$282.08 million in share sales this year to fund exploration and resuscitate mines.
The current primary uranium supply is unable to meet demand, and the deficit is being met by secondary supplies and inventory drawdowns, Paladin CEO Ian Purdy said at the Digger & Dealers Mining Forum in Kalgoorlie, Australia.
The average annual deficit is projected to be in the range of 40 million pounds over the coming decade, he told the forum.…
- The global mining industry is changing minerals that drove mining activity and profits are slowly being eclipsed by the emergence of a new class of resources, PWC reports.
- The pursuit of net zero emissions has altered the global mining industry which is increasingly leaning towards the production of minerals used in renewable energy and away from the production of fossil fuels.
- According to PWC Fossil fuels still contribute substantially to global mining companies despite critical minerals taking center-stage.
- Global mining activity despite the threat of global warming is not slowing down. It is to the contrary on the rise as the world looks for ways of reducing carbon emissions.
- At the turn of the millennium the global mining industry was driven by mass urbanization of emerging market economies like China, Brazil, India and Russia this projected to slow down or lose ground to the pursuit of renewable energy sources.
PWC's…
In as far as global trade is concerned Africa has a central role to play. So critical is this role that should Africa be absent from the global trade equation the global economy simply will not prosper. Africa’s mining sector offers in 2022 and going forward a real opportunity for expansion.
Africa’s economic transformation will come from its ability to leverage the comparative advantage position its natural resources offer. Africa needs to become the seventh corridor of the Belt & Road Initiative (BRI). China will be able to enhance its dominance in the global economy if it does more to invest in and develop economic ties with Africa.
Currently the BRI in as far as Africa is concerned restricts the role of Africa to providing access to raw materials.…
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- Zimbabwe's platinum resources are out of reach for most of the investing public.
- Platinum is one the largest generators of the foreign exchange for the southern African country.
- Zimbabwe has generated the most income in foreign exchange since 2013 due in large part to high platinum prices.
- There is currently no mechanism for investing in platinum for retail investors in Zimbabwe.
- The Great Dyke in Zimbabwe is the second largest platinum resource in the world.
Zimbabwe's platinum is not for Zimbabwean people. This may at first come across as an outrageous and even preposterous statement however, there is plenty of truth in it. This precious metal has been central to the country achieving a trade surplus as reported in the country's Monetary Policy Statement in February 2022. The southern African country received US$ 9 billion in foreign exchange receipts in 2021 which was a staggering 53.5% higher than the figure…