Industrial development and rapid urbanisation in developing countries is driving the demand for commodities upwards, placing huge burden on the resources. World’s traditional sources for metals and minerals would not be sufficient to fulfil this ever increasing demand. There has been a shift in focus on Africa which is set to have important implications for the continent and rest of world.
Owing to its rich geological legacy, Africa is well endowed with mineral deposits and hosts 30% of the world’s mineral resources (Department of Natural Resources, Institute of African Research and Studies, Cairo, Egypt). However, because of political and economic challenges faced by the continent, Africa has been explored only to a limited extent. Over the past century, mineral exploration in Africa was extremely low compared to all major mineral producing regions of the world.
In spite of holding major share of world’s natural resources, Africa received only 14% of the world’s mining investments in year 2012.
Over the past decade, investment climate in the continent has improved backed by peace in most of the African countries, increased regime stability, rising economies, technology penetration and increasing investor confidence. Africa has shown marked improvement across various parameters of economic growth, trade and investment. Consequently, Africa’s natural resources have been unlocked for investors worldwide. Global businesses across the mining industry value chain are rushing to Africa to secure their piece before the market gets saturated. For the world, Africa is the key to the future.