1. The Africa Mining Vision (AMV) and the African Peer Review Mechanism (APRM)
Kojo Busia and Marit Kitaw
Pre-Mining Indaba World Bank Event
Cape Town,
3 February 2013
United Nations Economic Commission for Africa
(UNECA)

2. Objective of the presentation
To explore how the African Peer Review Mechanism (APRM) can contribute to the implementation of the Africa Mining Vision (AMV)
To establish the comparative advantages of the APRM in mainstreaming and monitoring the AMV.

3. Outline of the presentation
Introduction
The Africa Mining Vision (AMV)
Overarching objective
Governance perspective
Success factors: the Governance angle
The APRM:
Principles and Objectives
The APRM and the AMV
Conclusions and Recommendations

4. Introduction
Minerals are a major source of income in Africa’s resource-rich countries (rents from oil and mining about 28 % of GDP; NR make up over 77 % of total export earnings and 42% of government revenues)
Challenge: to harness NR wealth for growth and sustainable development -> need for strong mineral governance
However, the region lacked a platform to pursue a continental agenda
Hence the need to have the AMV 4

5. The AMV: A new beginning for Africa
AFRICA MINING VISION
MINING REGIMES IN AFRICA
MECHANISMS FOR DELIVERY
An end to ad hoc approaches 5

6. adopted by the African Heads of State and Government in February 2009
“Transparent equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development”
THE AMV

7. Governance perspective
Fostering a transparent and accountable mineral sector in which resource rents are optimized and utilized to promote broad economic and social development
Promoting good governance of the mineral sector in which communities and citizens participate in mineral assets and in which there is equity in the distribution of benefits
THE AMV:
Governance perspective

8. Governance perspective (cont.)
Fostering sustainable development principles based on environmentally and socially responsible mining, which is safe & includes communities and all other stakeholders.
THE AMV:
Governance perspective (cont.)

9. AMV success factors: the Governance angle
Leadership, political will and proactive government action: Key
Mainstreaming the AMV at national and regional levels and secure buy in: Essential
Policy space and ownership of the development process: The cornerstone!
A capacitated African developmental state: It is a must!
Mining included in the discourse on domestic resource mobilization and reflected in relevant budget and planning frameworks (PRSPs, MLTSFs, Visions 2030)

10. AMV success factors: the Governance angle (cont.)
Domesticate transparency processes and strengthen overall governance (CSOs, legislature)
Build an alliance for change: State and citizens -from conflict to common purpose
Movement: Coordinated action between public, private, CSOs, and community stakeholders
Managing expectations: e.g. WEF Mineral Value Management Framework

11. AMV success factors: the Governance angle (cont.)
The Building Blocks for effective governance of MR- informed by the AMV:
clear, transparent, predictable and efficient legal and regulatory frameworks to ensure mineral wealth creation;
fair and equitable fiscal regimes to facilitate equity in the distribution of benefits;
credible public participation to enhance ownership and shape shared development outcomes;

12. AMV success factors: the Governance angle (cont.)
The Building Blocks (cont.)
transformational leadership and followership to harness mineral wealth with a view to building resilient, diversified and competitive economies;
strong institutions to ensure effective management of the sector; and
adequate infrastructure including an advanced human development to remain competitive; and to build a future beyond mining.

13. a key component of NEPAD - adopted by African Heads of State and Government as a systematic peer learning and self-assessment mechanism based on the NEPAD foundational document, the “Declaration on Democracy, Political, Economic and Corporate Governance” adopted in Durban, South Africa in July 2002.
The APRM

14. “Africa’s unique and innovative approach to governance” for improving governance dynamics at the local, national, continental and international levels through the principle of peer learning and best practices.
APRM review ensures a double contract between state and civil society, and between AU MS and continental peers – domestic and mutual accountability.
The APRM
(cont.)

15. APRM is a central component of NEPAD’s transformative agenda that has swept this continent over the last decade – promoting ownership, leadership and transformation in terms of how development is undertaken in Africa.
The APRM (cont.)

16. the APRM rests on creating both supply (laws, policies and development of institutions) and demand (strengthening CSOs & private sector involvement) for good governance.
APRM focuses on the overall macro-political and macro-economic framework for policy-making. Fosters inter-sectoral linkages
The APRM (cont.)

17. APRM is based on first hand empirical data through a self-assessment and validation country missions, subsequently allowing a customized approach to addressing context specific governance issues with commitments from government
The APRM
(cont.)

18. the APRM, through the National Plans of Action (NPoA) provides specific policy frameworks to turn investment in minerals into sustainable development, which is monitored by stakeholders.
The NPoA since budgeted could be translated into Results Based Budgeting
The APRM
(cont.)

19. APRM has contributed to a paradigm shift about how we think about and do development and the mechanism of self assessment; as well as policy dialogues and civil society engagement among others, have sought to promote a model of governance that would foster socio-economic development in Africa.
The APRM
(cont.)

20. The APRM & the AMV (cont.)
In July 2012, the APRM Summit, the Heads of States of the APRM Forum approved the revised APRM Self-Assessment Questionnaire which includes questions and indicators on the governance of the mineral resource sector.
 more robust country reviews and targeted discussions on EI governance
The APRM
&
the AMV
(cont.)

21. The APRM & the AMV (cont.)
For the mining sector, the APRM can increase the democratic space and promote policy dialogue and civil society participation thereby leading to the institutionalization of democratic accountability.
the APRM could diagnose systemic and structural issues that confront most African States in the development of the mining sector on the continent
The APRM
&
the AMV
(cont.)

22. The APRM & the AMV (cont.)
APRM also takes a comprehensive look at the political economy of the entire mining value chain and its implications for development outcomes.
The APRM
&
the AMV
(cont.)

23. The APRM & the AMV (cont.)
The APRM can provide a platform to produce, "Visions" which are legitimate, with a broad-consensus and engagement base, robust to local context and political reality.
the APRM can support the process of mainstreaming the AMV at country level as well as the formulation of Country Mining Visions (CMV)
The APRM
&
the AMV
(cont.)

24. The APRM & the AMV (cont.)
The accountability system of the APRM can contribute to generating
Fair and Equitable Fiscal Regimes which play a key role in building a social contract between citizens and the state
APRM ideal framework for linking the institutional issues around taxation and mineral resources governance to strengthen domestic accountability to citizens
The APRM
&
the AMV
(cont.)

25. The APRM & the AMV (cont.)
Strong Accountable and Participatory Processes
APRM operates through existing accountability institutions within the national governance system – parliaments, civil society, media, courts, private sector, and human rights organizations – bringing them together in a broad coalition to champion reforms.
The APRM &
the AMV
(cont.)

26. Conclusions and Recommendations
The APRM has comparative advantages that offer the best potential to advance the implementation of the AMV; it is broad-based framework that aims at enhancing domestic accountability of the sector.
With the revised APRM questionnaire , the new questions and explicit indicators specifically on the AMV, APRM will provide for a more robust approach for monitoring the implementation of the AMV.
The APRM can be a superior institutional framework to advance governance in the EI in Africa because it is African owned, is growing organically, is context specific and can ultimately yield better and more sustainable “social compacts” between state and society.

27. Quote
“The emerging new generation of political leadership on the continent ...should find such collective governance effort like the APRM inspiring and necessary for the nascent political and economic transformation taking place on the continent (either the Arab Spring in North Africa or the imperative of using mineral wealth to transform African economies).”
Mr. Carlos Lopes, UN Under-Secretary-General and Executive Secretary of ECA, 26 January 2013

28. Thank You!