Rwanda stirs up growth in mining sector

Rwanda's mining sector has emerged as a beacon of economic growth, with mineral exports reaching a staggering $800 million in 2022. This remarkable achievement has positioned the mining industry as the highest foreign exchange earner for the year. In a recent interview with CNBC Africa, Yamina Karitanyi, the CEO of Rwanda Mining Board, shed light on the factors driving this impressive growth and outlined the strategic measures being implemented to further enhance the sector's benefits. Karitanyi highlighted the pivotal role of government policies and interventions in propelling the mining industry towards sustained prosperity. These measures include enhancing mining production, improving mineral recovery rates, and capitalizing on favorable global mineral prices. One key strategy that has set Rwanda apart is the emphasis on value addition in the mining process. By transitioning from exporting raw mineral ore to selling refined products and derivatives, Rwanda has unlocked new revenue streams and market opportunities. While the $800 million in exports signals significant progress, Karitanyi emphasized that there is still room for growth in value-added products. For instance, while all gold exports were refined, only a fraction of tin exports underwent value addition, indicating untapped potential in this area. Looking ahead to the National Strategy for Transformation's target of $1.5 billion in mineral exports by 2024, Karitanyi outlined key investments and initiatives aimed at doubling the sector's value in just two years. These include ramping up production volumes, enhancing mining processes for efficiency, and transitioning towards professionalized and industrial mining practices. The CEO stressed the importance of empowering small-scale miners and communities with the necessary tools, knowledge, and equipment to drive productivity and sustainability in the sector. As Rwanda sets its sights on attracting private sector investments, the focus remains on de-risking the mining industry through robust planning, exploration, and resource assessment. Moreover, Karitanyi underscored Rwanda's commitment to traceability and ethical mining practices, citing partnerships with leading industry bodies like the International Tin Association and the Better Sourcing Programme. By ensuring that 100% of its mineral exports are traceable, Rwanda aims to uphold transparency and accountability in its mining operations. Addressing concerns about the origin of Rwanda's minerals, Karitanyi reaffirmed the country's dedication to traceability and emphasized that its mining history and known mineral deposits provide a strong foundation for ethical sourcing. With a century-old legacy of mining and a focus on emerging mineral interests, Rwanda stands as a beacon of responsible mining practices and economic growth in the region.