The African Mining Indaba is back after two years forced break due to the restrictions of physical gatherings due to the outbreak of the Covid-19 pandemic in 2020. This year’s event is expected to cover a wide range of topics covering investment opportunities in the mining sector, regulatory reforms and new technology and innovations. The event brings together stakeholders and African leaders whose decisions will drive and shape the future of investments into African metals and minerals industry.
This year’s event is held under the theme “Evolution of African Mining: Investment in the Energy Transitions, ESG, and the Economies”, brings renewed hope for exploration of opportunities, challenges in the sector to give stakeholders an opportunity not just to showcase or market mining prospects and growth opportunities in their countries, highlight the key regulatory framework and reforms to support continued growth in the sector, but also draw on strategies for sustenance of the industry during the global challenges of slow economic growth due to the effects of Covid-19 pandemic, climate change and the continued war in Russia and Ukraine.
The Indaba is Africa’s biggest single mining investment event and has attracted the captains of the industry and Africa leaders. African leaders who have confirmed participation include His Excellency Mr. Hakainde Hichilema, President of the Republic of Zambia, President Cyril Ramaphosa of South Africa, President of Botswana, Mokgweetsi Masisi and the Prime Minister of the Democratic republic of Congo, Jean-Michel Sama Lukonde and, Chairpersons and Chief Executive Officer from global mining giants such Barrick Gold, Vedanta Resources, Rio Tinto, Gold Fields, Glencore, Anglo American Group etc. Other speakers include executives from the World Bank, McKinsey & Co., African Union, Minister of Mines from the Kingdom of Saudi Arabia among other.
As mentioned above, Zambia is represented by a high-powered delegation led by the Republican President Mr. Hichilema. It is the first time that President Hichilema is attending the event as a Republican President having been in office for only 10 months. President Hichilema is an accomplished businessman who comes with a wealth of experience in business leadership and hence not new to such forums having participated previously in similar events as a businessman. The President is accompanied by the Minister of Mines, Mr. Paul Chanda Kabuswe MP, and other senior government officials. The state-owned mining investment company ZCCM-IH team is led by their Chairperson Ms. Dorika Banda. President Hichilema will be giving a keynote address to the indaba under the theme: A New Dawn for Zambia’s Mining Sector.
What are the expectations from President Hichilema’s address? Most industry stakeholders in Zambia will be keen to hear what Zambia’s new dawn policies on the mining sector are; how these will bridge the perceived expectation gap between the government policy to maximise revenue from mining activities, and mining investors long-term operational growth. The citizens back home will also be interested to hear how the government intends to harmonize the relationship between their government and mining sector on key issues such as tax policy, an enabling environment for employment and business opportunities, and corporate social responsibilities among mining companies. Issues around mining for lithium, Uranium, cobalt, gold, manganese in Zambia are expected to be covered in the President’s speech.
Apart from the President, the mines minister Honorable Paul Kabuswe and the Chairperson of ZCCM-IH Madam Dorika Banda will also be on the spotlight. Honorable Kabuswe is expected to cover issues around mining licensing; opportunities for local investors including issues around artisanal mining in the gold mining sector, how mining will work for local communities, labour etc. For ZCCM-IH, the expectations are equally high especially on harmonization of their relationships with fellow shareholders like Vedanta Resources in Konkola Copper Mines PLC (KCM), as well other partners in the mines where ZCCM-IH has a stake.
The ZCCM-IH official LinkedIn page stated that Ms. Banda will be a panelist to discuss; “Post COP26: mining industry response & the financing and economic drivers of global decarbonization: How world leaders’ pledge to tackle climate change affects investment into the mining sector, commodity prices and appetite for the critical minerals needed to fuel the green revolution”. This seems like a mouthful, but we trust Ms. Banda to do justice to this topic.
After all the speeches and panel discussions, the expectations back home will include more investment pledges in the mining sector based on our pledge of improvement in mining industry policy and investor certainty. Mining sector requires transparent regulatory and administrative policies. This means that the sector policies should enable not only foreign investors but local companies and individuals to participate and invest in the mining sector without too many rigidities. This has been the cry from Zambians for decades on. The new dawn government is expected to draw a clear narrative on the role that the mining sector will play in national development for its citizens. Government policy is expected to be flexible enough to reflect the realities of the industry vagaries of commodity prices and long-term expectation of investor both local and foreign. Tax policies should also be aligned to these fluctuations. We as a country need a win-win deal from the mining sector. This will mean a firm balance between getting more value and revenue streams from the mines and also be alive to the needs of investors to grow shareholder value and reinvestment. This will need to be done in an honest and open fashion covering all stakeholders i.e., government, citizens, and investors.
We will be following the Indaba closely and our next article will highlight the key outcomes from the event and how that will affect Zambia’s mining sector.
About the author
Edwin Goli Mulenga is Chartered Accountant, Corporate Banker, Investment Advisor and Public Speaker with over 20 years’ experience in Finance and Accounting, Corporate Treasury, Taxation, Corporate and Business Banking covering Relationship Management, Credit Origination, Debt Structuring, Structured Finance and Syndication. Edwin has a proven track record of working with multi-stakeholders and cross-sector groups in local and international organizations.
Edwin has is well networked in various business segments, corporations, multinational companies, development organizations, aid agencies, financial institutions, SMEs, professional bodies and the public sector.