Diaspora, Africa – (African Boulevard News) – Mining agreements in Africa have been a bone of contention for many years, with accusations of unfair terms often levied against investors. Countries rich in critical minerals such as cobalt and lithium tend to feel the pinch as investors exploit their resources, often at the expense of the host country.
However, there is a growing movement on the continent pushing for a new mining order that benefits both investors and host countries. The question remains, can African countries create a new mining order that is mutually beneficial?
According to industry experts, the answer is yes, but it will require a multi-stakeholder approach. The African Mining Vision is one such initiative, launched in 2009 to promote a transparent and equitable mining industry across the continent.
“We need to change the narrative around mining in Africa,” says Yves Bawa, CEO of the African Minerals Development Centre. “We need to ensure that communities and the environment are not left behind, and that African countries benefit from their resources.”
A key component of the African Mining Vision is promoting local participation in mining activities. Countries like Tanzania have already taken steps towards this, introducing laws that require mining companies to list on the local stock exchange and give the government a stake in their operations.
Other initiatives include the African Mining Partnership, which encourages collaboration between African countries to develop their mining industries, and the Extractive Industries Transparency Initiative, which promotes transparency in the industry by requiring companies to disclose their payments to governments.
However, critics argue that these initiatives are not enough, and that African countries need to take a tougher stance in negotiations with investors. One way to do this is by increasing their bargaining power through regional integration, says John Bosco Kalisa, an economist at the African Development Bank.
“African countries need to work together to negotiate better terms with investors,” says Kalisa. “They can do this by pooling their resources and expertise and negotiating as a united front.”
Ultimately, creating a new mining order in Africa will require a combination of government action, industry collaboration, and civil society engagement. But with critical minerals becoming increasingly important in the global economy, the stakes have never been higher.
“Countries need to be strategic about how they approach their mining industries,” says Bawa. “They need to balance the need for investment with the need to ensure that their resources are used in a sustainable and equitable way.”
