Africa Mining Vision: Philosophy, Action Plan and Implementation Claude Kabemba Director, Southern Africa Resource Watch Paper Presented at the 4th Zimbabwe Alternative Mining Indaba Bulawayo, Zimbabwe 28-29 October 2016 Holiday Inn September 2009

The AU Mining Vision Vision: The vision is that mineral resources could be used to catapult Africa to modernization. Goal: to create a “Transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development It seeks to integrate Africa's natural resources sector into the continent's social and economic development process

SDGs AGENDA 2063 `Transformative role of the minerals sector’ AMV Socioeconomic structural transformation SDGs CAP - >2015 Agenda Structural economic transformation and inclusive growth `Transformative role of the minerals sector’ AMV Transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development

End Users -- End Users -- End Users UPSTREAM BENEFICIATION LINKAGES DOWNSTREAM BENEFICIATION LINKAGES Primary Suppliers   Level 1, 2 & 3 Suppliers Other Industrial Sectors OUTPUTS Industry Operations Local cont Tech. Trns Ind. Growth PS. Dev Skilled Jobs Taxes Tech grth Innovation Forex Invest.   Exploration Site-Set up Mining processing Market Remediate Infrastructure R&D and Skills Financial Services Communication OUTPUTS Mineral Rents Jobs Taxes Dividends Foreign Exchange Beneficiation Processor SIDE STREAM LINKAGES End Users -- End Users -- End Users  

Emerging Opportunities Democratization New constitutions—with socio-economic rights Demand for Transparency and accountability ( EITI, PWYP) Attack on clause of confidentiality, demand for publication of Contract IFFs (illicit financial flows > FDI + ODA) Renegotiation of Mining contract Social investment , especially in Mining communities Neo-colonial constraints OECD rules (WTO) Bretton Woods agenda (“free mining”) Increase in commodity prices (2002-2008, 2009-2011) Rise of Asia (>minerals demand, investment) Venal EU Raw Materials Strategy and EPA restrictions

AMV-Origins 2007 the AU , AfDB and UNECA convened a “Big Table.” The seminal importance of establishing the critical natural resources “linkages” clusters is highlighted. 2008, the AUC study on a “Plan of Action for African resource based Industrial is published. A “technical taskforce”, convened with UNECA, to work on a draft new “Africa Mining Vision” The document is presented at “First AU Conference of Ministers Responsible for Mineral Resources Development late 2008. The AMV is adopted by African Union (AU) Heads of State and Government in 2009.

AMV Key Pillars Development of a diversified and competitive African mineral industry which contributes to broad economic and social linkages Fostering a transparent and accountable mineral sector in which resource rents are optimized and used for economic and social development Building human and institutional capacities towards a knowledge economy that supports innovation, research and development Promoting good governance of the sector in which communities and citizens participate in mineral assets based on equity in the distribution of benefits Harnessing the potential of small scale mining to improve rural livelihoods and integrating it into the rural and national economy Promoting sustainable environmentally and socially responsible mining, which includes communities and other stakeholders.

The Action Plan Optimising mining revenues; prudent revenue management a mining sector that generates adequate income to eradicate poverty and finance African growth and development - AMV Improving geological and mining information systems develop a comprehensive knowledge of Africa’s mineral endowment - AMV Building human and institutional capacities knowledge driven is the engine of an internationally competitive African industrial economy -AMV

The Action Plan Creating a viable artisanal and small scale mining harness the potential of artisanal and small scale mining to advance integrated and sustainable rural socio-economic development - AMV Reforming mineral sector governance An inclusive and well governed mining sector appreciated by all stakeholders including surrounding communities - AMV Investing in research and development a knowledge driven mining sector that is a key to a diversified and globally competitive African economy - AMV

The Action Plan Improving environmental and social issues a mining sector that is environmentally sensitive, socially responsible and appreciated by all stakeholders and surrounding communities - AMV Linkages and diversification catalyse and contribute to broad-based growth and development through upstream, downstream, side stream and infrastructure linkages - AMV Mobilising mining and infrastructure investment increase the level of investment into mining and infrastructure to support broad socio-economic development - AMV

THE AMV – Implementation In 2009, the Heads of State requested the AU Ministers of Mining to develop an action plan for implementing it. 2011, the 2nd Conference of Ministers of approved an Action Plan to implement the Vision. The Conference proposed the creation of AMDC to support AU member States in implementing the AMV. In July 2012, the AU Assembly endorsed both the Action Plan and establishment of the AMDC. A Country Mining Vision guideline book has been produced A governance framework to measure progress is in place

THE AMDC – Key Result Areas 1. Policy and Licensing Create AMV compliant policies Optimize tax regimes Improve management of mineral revenue 2. Geology and mineral information systems Improve exploration rates Upgrade mineral inventories Improve institutional capacities

THE AMDC – Key Result Areas 3. Governance and participation Strengthen transparency Improve public participation Strengthen environmental & social management programmes 4. Artisanal and small scale mining Improve ASM policies Promote a viable ASM Upgrade skills and technologies.

THE AMDC – Key Result Areas 5. Linkages, investment & diversification Improve R & D Enhance mineral value added Promote private sector investment Explore SD corridors 6. Capacity Building Build human & institutional capacities Build stakeholder capacities

THE AMDC – Key Result Areas 7. Communications and advocacy Communicate activities Create awareness Entrench ownership

THANK YOU ! Claudek@sarwatch.org www.sarwatch.org