September 18, 2021

AfDB champions effective management of natural resources to attract investment

3 min read

South Africa — The African Development Bank, under the leadership of its African Natural Resources Center (ANRC), hosted a series of events at Mining Indaba 2016 in a concerted campaign to support African Governments in their efforts to attract sustainable and environmentally friendly investment. One of the world’s largest mining conferences in the world, Mining Indaba took place from February 8-11 in Cape Town, South Africa.

Governments making efforts to attract sustainable and environmentally friendly investment

The AfDB delegation included representatives from the ANRC, the African Legal Support Facility (ALSF), the Africa50 Infrastructure Fund, as well as the Bank’s Development Research, Regional Integration and Trade, and Private Sector Departments.

ANRC’s Director, Sheila Khama highlighted the objective of the ANRC’s strategy, saying it sought to catalyze growth and development in Africa through effective management of the continent’s natural resources.

“While the many challenges facing countries in managing their natural resource wealth are well known, this is not matched with a capacity to respond to these challenges. This is where we come in. We are able to provide the tools to bridge the gaps,” Khama underscored.

The Director of ALSF, Stephen Karangizi, emphasized the role of the ALSF in building capacity of governments during negotiations with private and international partners and investors.

In responding to a question on whether there was demand from countries for enhancing capacity to negotiate in the mining sector, he said, “Yes, there is certainly a lot of demand from countries for enhancing capacity to negotiate, but the response has to be innovative with a tailor-made approach suited for each country.”

During the conference, ANRC presented a draft Local Content Policy Roadmap, a toolkit to assist countries in formulating effective local content policies. The session was attended by about 160 participants, who came to hear invited speaker Sir Paul Collier, Chair of the Blavatnik School of Governance at Oxford University and author of The Bottom Billion. In his opening remarks, Collier said, “Unlike oil rigs, mining operations are intertwined with the economies of the countries and communities in which they operate. This presents countries with an enormous opportunity for national enterprises to capitalize on the procurement boom of mineral development from the project stage and throughout the life cycle.”

Towards the end of the conference, the ANRC, International Council on Mining and Metals, and other partners jointly hosted a panel discussion on supporting resilient communities as part of the “Indaba Sustainability Day”. Opening the session, His Majesty Kgosi Leruo Molotlegi, King of the Bafokeng Nation, located in the platinum-producing region of South Africa, addressed delegates. “By definition, mines are not sustainable,” he said. “The question is then, how should communities respond and ensure long-lasting benefits from mining?”

Much of the discussions throughout the conference were focused on the current downturn in the commodities market affecting the mining sector across Africa. The AfDB, through the ANRC and the ALSF, is providing assistance to countries in creating sustainable green growth through effective natural resources management, so that the following upward cycle will not be a missed opportunity.

Mining Indaba is an annual conference dedicated to the capitalization and development of mining interests in Africa.

Leave a Reply

Copyright © All rights reserved. Newsphere by AF themes.