Former Exxaro CEO Sipho Nkosi
CAPE TOWN (miningweekly.com) – Governments have made great strides in Africa, with increased openness and transparency and more credible political leaders, yet the continent is not reaping the benefits in terms of mineral beneficiation, says former Exxaro CEO Sipho Nkosi.
“We produce primary products, but they come back onto the continent very expensive and very difficult to buy. We seem to be focusing primarily on mining, with everything being beneficiated in other countries.”
Nkosi told the thirty-fifth International Geological Congress (IGC) in Cape Town that Africa’s mineral exports are still taking up a very large slice of total exports.
He said Botswana’s mineral exports, as a share of its total exports, had risen from 58.7% in 1996 to 83.7% in 2010, with the increase in Zambia from 79.4% in 1996 to 83.6%. In the Democratic Republic of Congo, mineral exports made up 78.3% of its exports in 2010, up from 72.4% in 1996.
He told a plenary session at the IGC that Africa had tremendous potential, with a growing middle class and rising urbanisation, which had led to a boost in the real estate, hospitality and construction sectors. Yet beneficiation was lagging.
“Africa has the largest mineral industry in the world. Why is it that the continent is still not dominant? Why is it still suffering from hunger? Everyone comes to the continent and promises us a lot of things. But this is the first continent to be dumped when there’s a downturn,” he told the IGC.
African leaders also needed more vision and confidence.
“Until and unless people have vision in terms of their own leadership, countries will never grow.”
He also urged governments and mining companies to create and build trust with communities.
“We need to take communities with us and maintain dignity and our own levels of honour,” said Nkosi.