Edito of Mining and Business Magazine N°08
Kenya opens its doors to the mining industry. Uganda prepares to extract resources hidden under Lake Albert and will build a pipeline in partnership with Tanzania, a country also examining the riches of its continental plateau.

Will the mining sector contribute to the balance development of these Eastern African nations? Until now they have focused on agriculture and tourism. In other African countries, such as Nigeria, the mining of natural resources has created a corridor economy, whose only benefactors are foreign investors and a State incapable of redistributing wealth to a population that remains largely ignored by this activity. Elsewhere, mining has created a social rift by absorbing a large portion of the urban and rural populations’ activity to the detriment of their prior occupations, generating a bulky informal economy sector. In the DRC, informal employment makes up for 70% of all business. While these changes are taking place in Eastern Africa, Gécamines has decided to “clean up” the thirty or so partnerships and joint ventures it has signed since the beginning of the century. An audit firm will verify that investments promised by partners and production forecasts comply with the technical specifications signed. It also intends to track down sales and services contracts to ensure it isn’t being overcharged. Eastern Arica should be on the look out for the same traps…


Facebook Conversations

Disqus Conversations