INSIGHT: Mining sector key to Africa's development - Magazines - thecitizen.co.tz - 0 views
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Fifty years later, many of the issues problematised by post-independent generations remain with us today and we are resolute that they must and should be addressed. It is amongst the huge ironies of the sector, that according to the Mckinsey Report entitled “Reverse The Curse: Maximising the Potential of Resource Driven Economies of December 2013”, that “69 per cent of people in extreme poverty are in resource-driven countries and that almost 80 per cent of the countries, whose economies have historically been driven by resources have per capita income levels below the global average.” This is a situation that must be untenable to us all, to governments and international organisations as much as it should be to mining executives, financiers, investors and professionals.
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Central to the African Mining Vision is, therefore, the development of the sector on the continent, out of the enclaves, into a sector that can “catalyse and contribute to the broad-based growth and development of, and is fully integrated into, a single African market.” We have to get serious and work sector by sector, and region by region on the building of down-stream linkages into mineral beneficiation and manufacturing and up-stream linkages into mining capital goods, consumables and services industries.
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Africa is also a large producer of the mineral Columbite-tantalite (or coltan, the colloquial African term) and as the second fastest growing cell phone market in the world, also needs to look at this sector, as a producer rather than as consumer only. We often talk about African growth being driven by demand for its commodities in Asia and other parts of the world, but as our economies reach the critical tipping point of sustained 7 per cent and above growth, with greater diversification and industrialisation, and with our population set to reach two billion by 2050, we must also pay attention to stimulating and meeting domestic African demand.
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