Financial experts say African countries should collaborate in solving investment hurdles in the mining sector. The sector has been struggling to reach its optimum potential for the development of African countries.
Mining and research institutions note that at least 50% of all minerals traded around the world come from Africa. There are also some countries that have specific wealth in particular times of minerals.
The Vice President of the East African Business Council Denis Karera, and the head of DR Congo’s mining sector Eric Monga Mumba, say little investment in the sector continues to impede growth.
Eric Monga Mumba said; "It has become as though this problem will be persistent because Africa has precious stones but of less benefit to Africans than other continents. That’s why we are here as African countries, be-it Congolese, Rwandans and others, we must do all we can to fight it and give our citizens a portion of what is below the earth, add value to it and sell it for our development.
Lack of investment in mining has forced many to use foreign investment funds because banks haven’t trusted the sector enough.
There are however homegrown solutions like the new gold processing factory which does 90% of the work, meeting international standards. This as many affirm it, it would be processed well enough to be sold to the end buyer instead of going through third parties for processes that could be done in African countries.
Commissioner for Trade and Industry African Union Commission Albert Muchanga, explained that the mining sector requires investment and sustainability for assured development.
Muchanga said that; “One of the objectives of the AFRICAN free trade market is to add value to products. If intra-African trade is at 2%, value addition is needed and minerals will be pivotal, look at vehicles, its components come from here and come from minerals”.
In Kigali, a two day meeting is on going to deliberate on how mining institutions, traders, researchers in east and central Africa can build the sustainability of the mining sector. The prime minister of Rwanda Dr Edouard Ngirente says that collaboration of African countries can mitigate existing challenges in the sector.
This meeting is taking place in
conjunction with the mining sector’s exhibition. Figures reveal that among all
African exports, 20% comes from minerals and this sector employs about 12
million staff, which means that more investment would increase the
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Jul 09, 2020 Soma inkuru