A drastic shift towards financial sustainability is currently happening right now in Africa, which is leading many financial analysts to indeed, call it the next emerging market.
Africa has definitely changed in the last decade with a proactive movement in many African countries and their governments that show a communal interest in driving the evolution of the mining industry. The mining industry has seen a rise in commodity prices such as gold and copper, which is creating a more stable environment. This is seeing a return in exploration growth, because mining companies are viewing Africa as the ideal destination for new finds.
Major factors contributing to the growth in exploration in emerging economies are:
- The demand for commodities such as copper, cobalt, gold and lithium, which are directly due to the expanding electric vehicle market
- Many African governments creating more investment friendly policies and regulations within their borders
- Advancements in technology, namely automation, AI and machine learning, as well as software such as Micromine and Geobank
- Resource hungry China, which invests heavily in the African emerging markets
Legislation and policies have taken center stage in Africa over the past year with many governments starting to realize they need to manage their resources and interests more efficiently. Having a database infrastructure for all historical and current data, whether it’s aeromagnetic, drill-hole or topographic data, will assist in justifying and validating the resource capabilities of the country. Regulatory improvements have seen a more open-minded and community focused movement. Simplified permit and licence processes with a reduction in restrictions on prospecting makes it easier for mining and exploration companies to explore new areas. Governments and mining companies must understand the need to have local equity partnerships, improved labour laws, incentives for local investment as well as technology transfer for the community.
MICROMINE Africa continues to place a large focus on offering School of Mines and Universities reduced and/or free software to better prepare students and graduates with the skills required when entering the workforce. All of which will help improve communities and overall economies of their emerging economies.
With investment rising in emerging economies, the aim is to use this investment successfully. One such way is investing in training and technology which helps to improve how efficient you operate as an organization. Another important change being seen is co-investment in projects. This reduces the capital outlay for governments, which in turn sees greater levels of productivity, job creation and an increase in exports.
No doubt, Africa has a long way to go. However, now taking their resources more seriously and having a far better understanding that the potential the mineral deposits have in generating income and uplifting communities. It will take a few bumps in the road to get the formula right, still, Africa is on the up with regards to better mining practices, as well as investing in projects and businesses that will better their economies.
