Mining Strategy
Africa’s mining sector is between great opportunity and persistent crisis.
At the root of the crisis is a lack of trust between mining companies, governments and, indeed, the very nations they lead. A failure to tackle this aspect will result in serious, adverse implications for both economic growth and employment prospects at the moment when the continent’s needs are rapidly increasing and opportunities abound.
The opportunities today centre on Africa’s store of those minerals deemed critical to the energy transition. The world is on the cusp of an epic, generational supply-demand dislocation in critical minerals. Future demand is likely to grow at a faster rate than miners can supply over the next decade and beyond.
This ‘super-cycle’ will be driven by a transition from fossil fuel to electric vehicle mobility and the use of battery technology more broadly but is underpinned by a longer gestation change from an analogue to a digital world. This represents an extraordinary opportunity for producers, including in southern Africa.
Competition from producer countries elsewhere is fierce, and the winners will be those who can attract significant investment in mining and production. The losers will be those unable to seize the moment because of political inertia, policy unpredictability, logistical constraints, or inappropriate regulations.
Achieving a high-growth future demands addressing two interrelated questions: ‘What factors drive mining investment?’ and ‘How can African countries benefit more from mining?’
The team at GMA was instrumental in developing both the Zambezi Protocol and the following Minute which sought both to reduce tensions between critical partners and better position Africa to take advantage of the opportunities present.
The team was also engaged in the turnaround of the Zambian mining sector, commencing with the stabilisation and re-investment process after the election of Hakainde Hichilema in 2021.
GMA is capable to developing a strategic approach for mining companies in Africa, and for African governments wishing to grow investment in this sector.