The African Development Bank’s African Natural Resources Centre (ANRC) and the African Legal Support Facility (ALSF) hosted a dialogue on responses by governments and the industry to the COVID-19 pandemic in the extractive sector, focusing on South Africa, Ghana, Nigeria, and Kenya.
The session, held 21 October and moderated by ALSF Director Stephen Karingizi (photo), brought together policymakers and stakeholders to evaluate the effectiveness and sustainability of these measures in focal countries.
Umar Isa Ajiya, Group Executive Director at the Nigeria National Petroleum Corporation (NNPC), made the point that national oil companies should set aside risk funds to minimize the impacts of unforeseen events. Nigeria’s heavy reliance on oil revenues, oversupply and the dramatic fall in demand for example, has impacted its economy, he said.
“The federal government has had to cut its expenditure and reschedule debt, where necessary,” Ajiya stated.
In his remarks, Ben Aryee, Advisor to Ghana’s Lands and Natural Resources Minister, predicted a brighter outlook for the Ghanaian Gold sector in 2021. “Gold has become a safe-haven and an investment of choice for many investors, as gold prices continue to increase due to economic uncertainty,” he noted.
Ghana plans to launch a $400 million - $500 million Initial Public Offer at the London Stock Market in October, in a bid to take advantage of the precious metal’s strong performance this year.
James Ng’ang’a, Acting Secretary of Petroleum at the Ministry of Energy and Petroleum in Kenya, said the COVID-19 pandemic had led to difficulties in contract negotiations with oil and exploration companies.
The Chief Executive Officer of the Ghana Chamber of Mines, Sulemanu Koney, called on mining companies to establish good relationships with communities, which they can leverage on in the event of a crisis.
In her contribution, Valérie Marcel, an Associate Fellow at Chatham House and project lead for the New Producers Group, emphasized the need for more resilient systems to the “new normal. “
She noted that the pandemic had created a storm for the global petroleum industry – all at a time of efforts to decarbonize economies are gathering pace.
In separate presentations, Antonio Pedro, Director, UNECA, Central Africa and Claude Kabemba, Executive Director, South Africa Resource Watch, urged governments and industry players to implement the Africa Mining Vision (AMV) fully to curb the impact of the pandemic on the sector.
Several economies in Africa are sustained by the extractive industry, with most national budgets dependent on mining and petroleum exports.
AMV is a policy framework created by the African Union in 2009 to ensure that Africa utilizes its mineral resources strategically for broad-based inclusive development. However, eight years after its inception, implementation has been slow and there is a low level of awareness of the framework among key stakeholders in the mineral sector.
About ANRC and ALSF
The African Natural Resources Centre (ANRC) is a non-lending department of the African Development Bank with a mandate to assist African countries to maximize development outcomes from natural resources. The African Legal Support Facility (ALSF) is a public international institution hosted by the African Development Bank Group. The Facility provides legal advice and technical assistance to African countries in the negotiation of complex commercial transactions, creditor litigation and other related sovereign transactions
• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...
• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...
• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...
• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...
• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...
As work on the first phase of the Ahmed Sékou Touré International Airport expansion continues, Guinean authorities have announced their intention to move...
• Loulo-Gounkoto mine remains shut as Mali’s administrator seeks to restart it by selling stored gold• Barrick halted operations in January over export...
Hive Coega has officially entered its construction phase, with tenders now out for its core infrastructure. This milestone comes four years after the...
Côte d’Ivoire, the world’s leading cocoa producer, has set an ambitious target: to process 100% of its cocoa crop at the first stage by 2030. While the...
Located about 40 kilometers from Cape Town’s city center, Boulders Beach in Simon’s Town is one of the Cape Peninsula’s most iconic destinations. This...
The Gerewol tradition is a fascinating ritual celebrated by the Bororo Fulani, a nomadic community primarily located in Chad and Niger. This annual...