#MiningIndaba2020: IFC: Africa needs to invest more in infrastructure to attract investment

The 2020 Mining Indaba conference in Cape Town has been a showcase of the growth and potential of Africa in attracting investment. Ignacio de Calonje, Chief Investment Officer at the International Finance Corporation (IFC), highlighted the evolution of the conference over the past 26 years, noting the increased engagement with civil society and other stakeholders in the mining industry. The focus on infrastructure development emerged as a key theme, with discussions centering around the need for more investment to close Africa's infrastructure gap and create a conducive environment for profitable investments. Calonje emphasized the importance of anchoring infrastructure projects through mining activities, citing examples such as the Global Luminor project in Guinea financed by IFC. This integrated approach, which involves financing mines as well as associated rail and port infrastructure, demonstrates the potential for multi-purpose infrastructure development in the region. Despite the significant infrastructure gap in Africa running into tens of billions of dollars, Calonje stressed that the challenge lies not in the availability of funds but in creating favorable conditions for investment. Collaborative efforts between governments, companies, and financial institutions are crucial in addressing the barriers to investment in key sectors like roads, power, and ports. The IFC has been at the forefront of promoting environmental, social, and governance (ESG) standards in the mining industry. Calonje highlighted the Equator Principles set by the IFC, which have been adopted by major international banks to apply environmental and social standards to projects worldwide. The IFC's issuance of green bonds and its engagement with financial investors to strengthen ESG compliance reflect a commitment to sustainable and ethical investing practices in the sector. Despite the challenges associated with mining activities such as environmental damage and safety risks, Calonje emphasized the importance of addressing these issues while also highlighting the economic benefits and wealth creation potential of the industry. Overall, the 2020 Mining Indaba underscored the need for increased investment in African infrastructure to attract more funding and support for sustainable development. By focusing on infrastructure projects connected to mining activities, Africa can leverage the potential of the industry to drive economic growth and address critical infrastructure needs across the continent.