African mining industry bets on AfCFTA for higher returns

The African mining industry is gearing up for higher returns as it bets on the African Continental Free Trade Agreement (AfCFTA) to drive growth and sustainability. The AfCFTA has the potential to act as a strong impetus for African governments to address infrastructural gaps, improve supply chains, and boost production and capital flows in the mining sector. The global demand for critical minerals, especially for clean energy projects, presents a significant opportunity for African countries to leverage their rich mineral resources and maximize economic benefits. In a recent interview with CNBC Africa, Ambassador Yamina Karitanyi, CEO of the Rwanda Mining, Petroleum, & Gas Board, shared insights on how the AfCFTA could reshape the mining landscape in Africa. Karitanyi highlighted the importance of collaboration among African nations to enhance the value chain in the mining sector and ensure sustainable development. The key theme of the discussion revolved around the potential of the AfCFTA to foster regional cooperation and coordination for the benefit of the mining industry as a whole. Karitanyi emphasized the need for African countries to work together to optimize the utilization of resources and enhance value addition within the continent. By aligning their efforts and creating synergies, African nations can not only boost their mining capabilities but also promote economic growth and prosperity across the region. One of the key points raised during the interview was the significance of adding value to mineral exports through processing and refining within Africa. Karitanyi stressed the importance of moving away from exporting raw ores and instead focusing on refining minerals to capture greater value from the supply chain. By establishing refineries and smelters within the region, African countries can generate more revenue, create employment opportunities, and improve the sustainability of the mining sector. This shift towards value addition aligns with the broader objectives of the AfCFTA to promote intra-Africa trade and enhance economic integration. Another important aspect discussed was the growing demand for critical minerals like lithium and rare earth elements due to the global energy transition. Karitanyi highlighted the need for Africa to capitalize on its mineral resources and participate actively in the supply chain for clean energy technologies. With evolving dynamics in the global market, such as supply chain disruptions in China and regulatory changes in Europe, African countries have the opportunity to position themselves as key players in the mining industry. By focusing on sustainable mining practices and value creation, Africa can attract investment, stimulate innovation, and meet the increasing demand for critical minerals. In response to a question about the role of development banks in supporting the mining sector, Karitanyi emphasized the importance of financing sustainable mining projects from exploration to market. Development banks can play a crucial role in providing funding for exploration activities, facilitating access to modern equipment, and supporting pre-financing agreements with miners. By partnering with development banks, African countries can enhance the financial sustainability of mining operations, promote technology adoption, and ensure that foreign exchange remains within the continent. In conclusion, the AfCFTA presents a unique opportunity for Africa to transform its mining industry and unlock its full potential. By embracing regional cooperation, promoting value addition, and leveraging critical mineral resources, African countries can drive sustainable growth, enhance economic diversification, and create a more inclusive mining sector. With the right policies, investments, and partnerships in place, Africa's mining industry is poised for a brighter and more prosperous future.