Mining Nationalism In Africa... Consultancy Africa Intelligence
Africa Nationalistion Mining industry Trackbacks (0)Justified redistribution of wealth or an obstacle to growth? Written by Anders Brudevoll
Historically Africa’s vast natural resources have been a driving factor for colonisation and imperialism. Still today, the true extent of Africa’s wealth of resources remains uncertain. Nevertheless, the continuous discoveries of immense mineral deposits and the rip-roaring Chinese demand contributing to soaring commodity prices, have led to Africa being perceived as the future for the world’s mining industries.(2)
In recent years, increasing commodity prices have boosted the returns from mining projects to all time high levels. Unsurprisingly, this has inspired Governments to seek to enhance their revenues from the mining sector. Highlighting this, South Africa has been reported to be considering imposing a 50% windfall tax on mining, Ghana has announced a review and possible renegotiation of all mining contracts, and Zambia recently doubled its royalties on copper.(3) However, increasing the role of the state has not necessarily led to higher returns. Across Africa, the nationalisation of mining has illustrated the positive opportunities for public-private partnerships, but also the negatives of enhancing the role of the state in mining operations. This CAI paper discusses what has beendescribed as the emergence of resource nationalism on the African continent, paying particular attention to the potential disadvantages of this trend and the role of society in effecting change in the way Governments handle their nations’ mineral wealth...[more]
Anders Brudevoll works for Consultancy Africa Intelligence’s Africa Watch Unit