African mining industry bets on AfCFTA for higher returns

The mining sector in Rwanda has been making significant strides in recent years, with the country's gold mines and refineries selling minerals worth a staggering $190 million in just the first quarter of 2023. The sector, which has emerged as Rwanda's top forex earner, has been on a steady path of growth, expanding markets, boosting production, and adding value to its exports. The impressive recovery rate is further expected to soar with the recent investment in the Miobe mine. A key strategy employed by the Rwandan government to maximize the financial benefits of mining gold is the focus on keeping all operations within the country. This approach includes adding value to the minerals before export, a move that has proven to be highly profitable. By shifting from exporting raw ore to exporting refined gold, Rwanda has positioned itself to capitalize on selling derivatives and by-products of the mined minerals. The policy of only exporting refined gold has ensured that every ounce of gold mined in Rwanda is refined locally before reaching the global market. Gasavo Gold Refinery stands as a shining example of this value addition and commitment to quality. The refinery boasts a modern plant equipped with cutting-edge technology sourced from countries like Italy and Germany. This investment in state-of-the-art equipment has allowed Gasavo Gold Refinery to refine gold to a purity rate that commands higher prices in the global gold market. Their gold is refined to an impressive 99.9% purity, while silver is refined to triple 9, 99.9% purity. The refinery's dedication to excellence is further underscored by its workforce, comprised entirely of 40 well-trained local staff. The employees undergo regular training to stay updated on the latest technologies and processes within the refinery. Gasavo Gold Refinery's reputation for quality and reliability has not only benefited miners in Rwanda but also attracted traders from across Africa. The refinery's centralized geographic location offers traders easy access, making it a preferred destination for processing gold from various African countries. Gasavo Gold Refinery's commitment to adding value to minerals before export has positioned Rwanda as a key player in the global gold market. By refining gold to international standards and seeking accreditation from reputable bodies like LMBA, Rwanda aims to strengthen its foothold in the global market. The policy of adding value to commodities before export has the potential to quadruple the value of exports, a significant boost to the country's economy. Looking ahead, Rwanda has conducted an airborne survey of the entire country to identify potential mining sites and resources. By de-risking the sector and attracting investors, Rwanda aims to hit its target of USD 1.5 billion in earnings from the mining sector. The future looks bright for Rwanda's mining industry, with Gasavo Gold Refinery leading the charge towards higher returns and a stronger position in the global market.