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Harnessing the Africa Mining Vision to capture
the developmental benefits of mineral resources
Dr Kojo Busia, Coordinator, African Minerals Development Centre; John Robert Sloan, Economist,
African Minerals Development Centre
T
he structural transformation of African countries,
from economies characterized as low-income and
vulnerable to boom-bust cycles due to commodity
dependence, into more diversified and industrialized econo-
mies creating higher-income jobs, is a top priority for policy
makers. The goal of transformation is not new, but the volatil-
ity of mineral and oil prices over the past ten years – having
fed both the Africa Rising narrative as well as exposing the
fragility of record growth and revenues to global events
– has shed light on the importance of a practical and imple-
mentable roadmap to transformation by more productively
harnessing the continent’s natural resource assets.
The Africa Mining Vision (AMV), adopted by African Heads
of State in 2009, showcases the potential of Africa’s mineral
sector to be a central pillar of structural change and trans-
formation on the continent. It represents a sustainable
development paradigm aiming to re-align the view of mineral
resources as a driver for growth and development across all
of Africa’s economic sectors. The AMV shares the vision for
a productive, inclusive and sustainable future for Africa as
envisaged by the Sustainable Development Goals (SDGs), and
indeed, strategies to implement the AMV will also help coun-
tries work towards each of the 17 goals.
It is clear that an inclusive approach to the use of minerals
to spur economic linkages and social benefits, as advocated
by the AMV, is an approach that can help Africa turn the
corner in its role in the global economy, and that an institu-
tional arrangement with mineral-based transformation at its
centre is necessary to usher in this strategy.
The importance of mineral-based development
The role of minerals in Africa’s economic landscape is clear.
Minerals and metals contribute over 20 per cent of Africa’s
total economic output, and several countries’ export and
foreign exchange earnings rely greatly on minerals, account-
ing in many cases for over half of national export flows.
1
Indeed, for many mineral producing countries, these resources
are of far greater proportional importance for exports than
overall output (see table on opposite page). Record high global
commodity prices, peaking in 2011, attracted investment
from new partners such as China, filled government coffers
and provided funding for developmental spending, particu-
larly on infrastructure. The outlook for Africa’s future role in
the global commodity industry is also strong. It is estimated
that the continent holds roughly one-third of global mineral
reserves, including over half of reserves of platinum group
metals, diamonds, phosphates and other mineral groups.
Yet despite these assets and the principal role of mineral-based
growth, it is clear that a long history of mining, extraction and
export has failed to spur the development of related manufac-
turing, value-added services and other sectors that are vital for
stable income and jobs. Indeed, whereas mining in commodity-
dependent Chile, Australia and elsewhere has fostered national
and regional linkages in higher value activities, the majority of
African mineral producers remain stuck in low-value extraction
with few employment-creating externalities. Despite record
mineral revenue collection, fiscal leakages – illicit and other-
wise – have robbed the continent of funds for development,
and such leakages occuring along mineral value chains further
disincentivizes value addition. Recent infrastructure invest-
ments in the mineral sector tend to resemble those during the
colonial era, with transport, energy and communication grids
serving resource extraction but doing little for the population
at large and failing to strategically link with agriculture and
other vital sectors. Inequality and growing problems surround-
ing artisanal and small-scale mining point to persisting lack of
access and shared benefits from national resources.
Guidance provided by the Africa Mining Vision
A strong framework does exist that deals with these very
challenges and foresees a diversified, inclusive and integrated
African economy built around a more responsible use of
The Africa Mining Vision – fundamental pillars
The AMV is organized according to seven fundamental pillars, on
which an inclusive and transformative approach to harnessing
mineral endowments will be based. These include:
• Optimizing knowledge and benefits of finite mineral resources
• Harnessing the potential of small scale mining to improve rural
livelihoods
• Fostering sustainable development principles based on
environmentally and socially responsible mining
• Building human and institutional capacities towards a
knowledge economy
• Developing a diversified and globally competitive African
mineral industry
• Fostering a transparent and accountable mineral sector
• Promoting good governance of the mineral sector in which
communities and citizens participate in mineral assets.