Enhancing Africa's Value in Mineral Value Chains - 2023 U.S.-Africa Business Summit

On Wednesday, July 12th, 2023, the Corporate Council on Africa (CCA) hosted an eminent high-level dialogue titled "Enhancing Africa's Value in Mineral Value Chains" during the prestigious U.S. - Africa Business Summit in Gaborone, Botswana. The discussion, skillfully moderated by Ms. Marit Kitaw, the esteemed Interim Director of the African Mineral Development Center, centered around devising optimal strategies to bolster Africa's active participation in the global mineral value chains. The event brought prominent leaders and experts to explore avenues for maximizing Africa's potential in this crucial sector.During the discussion, Hon. Chipoka Mulenga, the Minister of Commerce, Trade, and Industry for the Zambian Government, emphasized the importance of African countries collaborating. He urged nations to prioritize inter-regional trade while also considering partnerships and collaborations with developed nations as a complementary approach.Ms. Andronicca Masemola, the chief executive officer of Barloworld Equipment Southern Africa, shared the achievements of her corporation in increasing value addition in Southern Africa. She outlined the strides they have taken to accomplish this significant goal.During the high-level dialogue, key figures from various organizations shared perspectives on creating sustainable solutions for poverty relief and responsible mining practices.Mr. Kurtis Lockhart, the Executive Director of the Charter Cities Institute (CCI), highlighted the institute's mission to establish new cities with empowered governance, aimed at alleviating poverty. Additionally, CCI seeks to transform the traditional model of mining, which depletes mineral resources, by embracing urbanization and sustainable methods for sourcing raw minerals.Mr. Osamede Iyahen, Senior Director of the Africa Finance Corporation, addressed the issue of lacking investment in downstream mining value chains in Africa. He emphasized the crucial role that AFC and other financiers play in promoting and supporting these value chains to drive sustainable growth in Africa.Representing the Minerals Development Company of Botswana, Mr. Matome Tsholetsa discussed the delicate balance that African countries must strike between attracting foreign investments in the mining sector while also maximizing local content and value addition for the benefit of their communities.Overall, the conference shed light on the importance of innovative governance, responsible mining practices, and strategic financial support to achieve sustainable development and prosperity in the region.The CEO of the U.S. International Development Finance Corporation, Scott Nathan, discussed the various forms of aid that developing countries can offer to expedite investment. He emphasized the U.S. government's commitment to fostering partnerships with a focus on high standards and quality while respecting local conditions and customs, including environmental, social, and labor standards. In addition, Stephen Kgobe, Sales, and Operations Manager at Lucara Diamonds highlighted the policies that African governments can adopt to attract more investment in mineral processing. He urged African countries to explore opportunities for processing their mineral resources locally, thereby increasing their value and benefiting their economies.The discussion's primary focus was the development of value chains in Africa to achieve sustainable economic growth. For this purpose, African countries are required to establish strong and well-funded institutions. Additionally, conducting extensive market research and commodity analyses is essential to gain a comprehensive understanding of the available resources.Furthermore, it is crucial to segment the markets and promote incremental innovation that will enable businesses to effectively target specific customer groups and continuously improve their products and services.The panelists explored critical issues related to the mechanization of the work field. One concerning outcome of this trend has been the decline in mining jobs, caused by the growing implementation of automation. Another crucial topic of concern was the potential for China to establish a global monopoly.The participants emphasized the significance of maintaining a diverse supply of essential minerals and encouraging the development of value-added products. They stressed that this is essential for the overall well-being of the global community. The fear is that if a single country gains dominance across all levels, it would have negative consequences for the world's interests, limiting the advantages of diversification. Therefore, ensuring a balanced distribution of power is essential for safeguarding the interests of the international community.Furthermore, with regards to skills development and mechanization, it has been emphasized the importance of a global commitment to prevention. Additionally, it is essential to industrialize responsibly, ensuring a continuous creation of job opportunities. Whenever an antiquated job is replaced by machinery, a new job opportunity should be generated to compensate for the loss.Click hereto watch the recorded session.