Let’s create opportunities to attract investors - Jinapor to African govts
The Minister of Lands and Natural Resources, Samuel A. Jinapor, has urged African countries to create investment opportunities to attract businesses.
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He, however, said for that to happen, they must prioritise value addition instead of the "dig and ship" approach to ensure the growth of their mineral infrastructure.
The minister was contributing to a ministerial symposium panel discussion at an “African Mining Indaba” conference in Cape Town, South Africa, last Sunday on the topic: "Pushing Africa into a new investment era with solutions to the continent's greatest challenges".
Infrastructure
Mr Jinapor said it was necessary for governments to provide the necessary infrastructure and environment, including cadastre and other facilitated systems for investors to operate, optimise and maximise benefits to be shared equitably.
"You cannot achieve value addition or participate at the highest end of the value chain if the government doesn't establish a proper, investor-friendly environment. It's crucial, and governments must prioritise this," he said.
The minister added that fundamental elements such as a solid and consistent rail system, reliable infrastructure and power systems must be in place to attract the private sector.
Policy framework
Using Ghana as a case study, he said there existed a policy framework in the country where both the state and investors played their respective roles.
In the context of bauxite, for instance, Mr Jinapor said Ghana was working towards building an integrated aluminium industry, supervised by President Nana Addo Dankwa Akufo-Addo, to exploit and manage the resources effectively.
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He said there was also a mutually satisfactory arrangement for all parties involved to strike a balance between value addition and indigenous participation.
The minister advocated that policy frameworks across Africa must be synchronised to universally promote value addition.
He reiterated the new perspective on mining sector investment in Africa, envisioning a shift from the "rich Africa with poor Africans" model to one resulting in "rich Africans from rich Africa."
The minister further cited a joint effort by Ghana and Cote d'Ivoire to structure a common market pricing on cocoa as a positive example of African collaboration for growth.
He also attributed the successful establishment of an automobile industry in Ghana to an effective policy framework that aligns with the primary goal of private sector investments of making profit.
The minister, however, acknowledged the challenges some African countries face with changing of government policies and, therefore, stressed the need for sustainable policies which he said would be in the continent's best interest.