How is Rwanda's mining sector fairing amid the COVID-19 crisis?

Rwanda's mining sector, the second largest export revenue owner in the country, is facing significant challenges due to the impact of the COVID-19 pandemic. In a recent interview with Fabrice Kayihura, Managing Director at Ngali Mining, he highlighted the detrimental effects of the pandemic on the mining industry. The lockdown measures implemented in mid-March forced a halt in all mining activities, leading to a stop in production, loss of revenue, and economic strain on mining companies and workers. Ngali Mining, for example, had to cease ore-extraction activities, resulting in financial losses and a decline in mineral sales. The lack of production also meant that no taxes were being paid to the government, further exacerbating the economic impact on the sector. Kayihura emphasized the severe consequences of the pandemic on both individual companies and the mining sector as a whole, calling attention to the urgent need for recovery strategies. As the industry strives to bounce back from the crisis, key considerations like commodity demand, strategic investments, and financial support come into play. Kayihura stressed the importance of prioritizing commodities with stable market demand for immediate production. While certain minerals like gold continue to hold value and demand, others, such as the luxurious stone anitists used in jewelry, have seen a decline in sales due to reduced buying from Asian markets like China. This shift in demand necessitates careful investment decisions to ensure a timely and profitable recovery for mining operations. When questioned about the financial processes needed to return to normal operations, Kayihura highlighted the essential role of government and financial institutions in providing stimulus and support to the industry. He emphasized the need for banks to restructure existing loans and offer favorable interest rates to facilitate the recovery of businesses in the sector. Additionally, Kayihura underscored the importance of responsible capitalization and strategic planning in mining investments. Despite the challenges posed by the pandemic, he expressed confidence in the industry's ability to leverage available capital effectively for sustainable growth. As the sector navigates the uncertainties brought about by the ongoing crisis, prudent financial management and strategic decision-making will be crucial for Rwanda's mining industry to recover and thrive in a post-pandemic landscape.