It was revisited at this year's event, at a series of special sessions, “As the African Union, we recognise that the extractives sector is characterised by complex relationships and competing demands, rights, and claims from governments, local communities, and civil society on one hand and private companies on the other.
“Further, African governments are increasingly becoming more assertive in developing long term visions for mineral resources to increase local content; move up the value chain; and increase inter-sectoral linkages between minerals and non-mineral sectors,” said African Union trade and industry commissioner, Fatima Haram-Acyl, in her opening remarks.
“The rationale for this year’s policy dialogue is based firmly on the reality that the time has come for serious conversation on the need to identify strategies and mechanisms for promoting shared value and share benefits in this sector.
She explained that even though commodity prices were showing strong signs of recovery, there was still a backlash that was impacting on the fiscal position of many of the mineral rich countries on the continents.
“During this downturn, many companies are in survival mode, conserving cash and streamlining costs. There is a potential danger that if these reforms and adjustments are not managed properly, most African governments will potentially face severe socio-economic consequences in the short and long term,” she said.
All the 54 African Union member countries have adopted the African Mining Vision in order to ensure that mining activities contribute to economic transformation and benefit all African citizens.
Daniel Kazungu Muzee, mining minister of Kenya, added: “Our new mining act borrows heavily from the Africa Mining Vision. The AMV paves the way of sustainable utilisation of mineral resources and good governance. To achieve this vision, we need to go back to the private sector.”
However, successful implementation hinges on buy-in from the private sector and other key stakeholders in Africa, at both regional and country levels.
In addition, there is some scepticism on whether the compact will really benefit African communities. At the Alternative Mining Indaba – an event that runs parallel to the Investing in African Mining Indaba – with the intention of giving civil society a voice on the extractives industry ¬ – there were mixed reactions on what the AMV really means.
The primary criticism is that it may open the way for further institutionalised cronyism between the big mining houses and the political juntas in Africa, rather than its intended purpose of uplifting the people in mineral-rich countries.
