Africa is rich in mineral resources that have been traded internationally for many years through Global Value Chains (GVCs). GVCs refer to international production sharing where the different stages of the production process are located across different countries. In a robust panel discussion held at the 2024 Mining Indaba, esteemed panellists engaged on GVCs, their significant feature in world trade and notably, creating an attractive investment environment and support towards Africa’s priorities.
The key takeaways from the panel on how African States ought to diversify GVCs included:
- Effective collaboration and partnerships between the private and public sector.
- Collaboration between African governments.
- Amendments to the laws that govern the value chain of minerals in Africa, with a focus on how minerals can be transformed, in Africa and by Africans, at the various stages of the value chain until they reach the end user.
- The need for political & economic stability, predictable legislation, and reliable infrastructure.
- A focused approach towards robust innovation, technology, stable financial banking systems, and appropriate data collection and use.
The African Minerals Strategy Group (AMSG) was formed at the Future Minerals Conference held in Saudi Arabia in January 2024. The fundamental purpose of this group is to unite Africans and maximise benefits from the continent’s mineral resources. Reports indicate that 15 countries have pledged their support towards this cause and there are expectations that more countries will join the AMSG. The appointment of Nigeria’s Minister of Solid Minerals Development, Dr Oladele Alake’s as the chairperson of the group, has inspired confidence that Africa’s placement within the global value chain will be emphasised and prioritised.
The diversification of GVCs overlaps local and international legal regimes. Our cross-border service offering and industry experts are well equipped to advise companies across all value chains, from preproduction to postproduction.
