Commodities and “Africa Rising”

Taking together agricultural commodities, timber, metals and minerals, and hydrocarbons, natural resources have accounted for roughly 35% of Africa’s growth since 2000. Resource-based raw and semi-processed goods accounted for about 80% of African export products in 2011, compared with 60% in Brazil, 40% in India and 14% in China. Similarly, most greenfield foreign direct investment (FDI) in Africa went to resource-related activities.

The Boom is Over

Changes in African production of selected minerals 2000 and 2010

Industry in Africa 1970-2008

Action Plan for Accelerated Industrial Development in Africa (AIDA)

  • Adopted in September 2007 by Africa’s Ministers of Industry
  • “Industrialization is a critical engine if economic growth and development . Indeed industrialization is the essence of development”
  • Does not use the framework of SET, but meeting MDGs and taking advantage of globalisation
  • Sets out steps (policies and actions) at national, regional and continental levels for industrialisation

AIDA’s Six priorities for the Africa’s industrialization

  1. Policy on Product and export Diversification, Natural Resources Management and Development
  2. Infrastructure Development
  3. Human Capital Development and sustainability, Innovation, Science and Technology
  4. Development of Standards and compliance
  5. Development of Legal, Institutional and Regulatory Framework
  6. Resource Mobilization for Industrial Development

Africa Mining Vision

  • Adopted in 2009 by AU Summit
  • Action Plan with nine programme clusters to be implemented at national, regional and levels approved by Ministers in December 2011
  • Report: Minerals and Africa’s Development published December 2011
  • Implementation/coordination centre AMDC based at the UNECA
  • Marks paradigm shift

9 Africa Mining Vision and Industrialisation

  • A mining sector that has become a key component of a diversified, vibrant and globally competitive industrializing African economy
  • A knowledge-driven African mining sector that catalyses & contributes to the broad-based growth & development of, and is fully integrated into, a single African market through:
  • Down-stream linkages into mineral beneficiation and manufacturing;
  • Up-stream linkages into mining capital goods, consumables & services industries;
  • Side-stream linkages into infrastructure (power, logistics; communications, water) and skills & technology development (HRD and R&D);
  • A mining sector that optimises and husbands Africa’s finite mineral resource endowments and that is diversified, incorporating both high value metals and lower value industrial minerals at both commercial and small-scale levels

10 AMV Action Plan Programme Cluster 8 – Linkages and Diversification

  • Goal – To create a mining sector that catalyses and contributes to broad-based growth and development through upstream, downstream, sidestream and infrastructure linkages
  • Expected accomplishment – Enhanced Mineral Based industrialisation and diversification of African economies

Presented by : Yao Graham, Third World Network-Africa

Download full presentation here