Wednesday, 17 February 2016

AU Commission urges African governments to use commodity downturn to strengthen their laws and institutions

Cape Town, South Africa, 7 February 2016 (ECA) – A keynote speech delivered on behalf of Her Excellency Mrs Fatima Acyl, African Union Commissioner for Trade and Industry at Cape Town’s annual Mining Indaba acknowledged the reality of the commodity price slump, but also identified the opportunity for African governments to create the right legal and institutional framework to drive change in their economies.

“Now that the boom is over, it is even more imperative for all stakeholders to get down to the hard work of implementing the development agenda embodied in the African Mining Vision, for sustainable structural transformation of African economies,” urged Her Excellency in the speech.

Stressing that the Africa Mining Vision (AMV) went well beyond simply questions of taxes and revenue collection, the Commissioner’s speech stressed mining’s role in linkages and infrastructure development.

“A typical mining company spends over 61 percent of its total investment on infrastructure and procurement – more than three times what is paid in taxes,” noted the Commissioner’s speech. “Investment through linkages presents opportunities for governments to align their development policies in ways that capture greater value from mining,”

The speech was delivered at the annual Ministerial Symposium, held the Sunday before Mining Indaba commences. The Symposium provides a platform for ministers responsible for mineral resources to discuss common risks and opportunities associated with the implementation of the Africa Mining Vision.