African Mining Indaba: Financing Africa's mining sector

The African mining sector continues to be a crucial driver of economic growth and development on the continent. Providing financial and operational solutions to companies in this sector remains paramount to the expansion of the value chain, as highlighted by Etienne Mabunda, the Commercial Director of RawBank, during an interview with CNBC Africa's Fifi Peters. Mabunda emphasized the importance of implementing solutions to facilitate the operations of businesses in the mining industry. The Democratic Republic of Congo (DRC) stands out as a significant player in the mining sector, with an increase in production witnessed in recent years. Mabunda revealed that the production of copper and cobalt in the country had increased notably, with the total production of copper reaching 2.3 billion tons. However, he also pointed out the continuous need for more capital and financing within the mining sector to support both local and international mining operators. RawBank has been at the forefront of providing financial solutions to various players in the mining value chain, from large companies to smaller enterprises and contractors. In the past year alone, RawBank disbursed over 800 million in credit to support mining operators and their value chain, ensuring timely project delivery and employee salaries. The bank's focus on supporting SMEs is evident in its recent partnership with the International Finance Corporation (IFC), where a 35 million US dollar loan agreement was signed to bolster SME activities. Mabunda highlighted the importance of long-term relationships with clients, emphasizing the need for comprehensive due diligence processes to assess the potential risks and viability of mining projects. Despite political challenges in the DRC, investors are looking beyond the current climate and focusing on the sector's long-term growth prospects. Mabunda stressed the importance of ensuring that mining activities align with environmental, social, and governance (ESG) standards to attract financing. Looking ahead, RawBank aims to further diversify its funding sources for the mining industry, exploring options such as raising funds in the local market through initiatives like syndication loans with local and international partners. The bank's commitment to supporting the evolving needs of the mining sector underscores its dedication to driving sustainable growth and development in Africa's mining industry.