Egyptian Minister of Petroleum and Mineral Wealth, Karim Badawi, stated that his ministry is working to create an attractive investment environment in the mining sector. This effort aims to encourage global, regional, and local companies to enter and expand their investments in Egypt. The goal is to benefit from successful international experiences in developing and exploiting mineral resources. Badawi made these remarks during a high-level roundtable discussion titled "From Exploration to Markets: Enhancing Mineral Value Chains in Africa." The event took place on the sidelines of the fifth edition of the Egypt Mining Forum.
The roundtable discussion, which included ministers and CEOs from African and Arab countries, focused on the importance of cooperation between governments and investors. Badawi emphasized that developing the mining sector requires adopting best practices and international expertise. He also stressed the need for clear national frameworks for mineral wealth development. These frameworks should be tailored to each country's specific needs and provide a suitable environment for the growth of companies operating in this sector.
Badawi highlighted the importance of attracting major global companies to participate in exploration, production, and long-term development of mining projects. He noted that maximizing the benefits of mineral resources requires more than just extraction. It involves developing a comprehensive system that includes infrastructure, transportation, ports, communications, electricity, and energy. This approach enables the transition from exploiting raw materials to developing and manufacturing them, thereby increasing their value.
Tanzanian Minister of Minerals, Anthony Mavondy, stated that his country is adopting a vision to develop the mining sector. This vision involves moving from extracting and exporting raw materials to building integrated value chains that include processing and refining. Mavondy mentioned that Tanzania aims to increase the percentage of high-precision geological and geophysical surveys from 16% currently to 100% by 2030. This effort will help provide a more accurate database, reduce investment risks, and identify critical and strategic minerals such as nickel, graphite, and rare earth minerals.
Kenyan Minister of Mining, Blue Economy, and Maritime Affairs, Hassan Ali Joho, emphasized the importance of enhancing dialogue and harmonizing mining policies at the continental and regional levels. He noted that African countries have common opportunities that can be developed collectively. Joho called for continued dialogue on mining policies and creating a supportive business environment for investment. He also suggested leveraging common market frameworks and best practices to build a productive and sustainable mining sector in the long term.
African Mineral Strategy Group (AMSG) Secretary-General, Musa Michael Ingado, stated that discovering mineral resources is just the beginning. The real challenge lies in converting these resources into productive projects that reach development, processing, and final market stages. Ingado emphasized that achieving this requires integrating multiple elements, including geological data, infrastructure, governance, energy, and technology. He also stressed the need for governments, the industry, and financial institutions to work together to develop feasible and sustainable mining projects.
The participants at the roundtable discussion concluded that developing the African mining sector requires transitioning from extraction and exporting raw materials to building integrated value chains. These chains should include processing, manufacturing, and maximizing local value-added. They also emphasized that attracting private capital and long-term financing is linked to clear and stable legislative and regulatory frameworks. Moreover, developing flexible partnership models between governments and investors is crucial, taking into account the different needs and capacities of countries and projects.
Key points
- Egypt's Minister of Petroleum and Mineral Wealth calls for boosting investments in the African mining sector.
- African countries aim to transition from extracting and exporting raw materials to building integrated value chains.
- The development of the African mining sector requires clear legislative and regulatory frameworks and flexible partnership models.
