SPEAKING at the ongoing US-Africa Business Summit in Botswana, the country’s President Mokgweetsi Masisi underscored the importance of beneficiation, or value addition, of diamonds and other minerals to boost African countries’ economies. President Masisi expressed his determination to see the development of value chains for raw materials, enabling greater value addition, fostering innovation and growth, adapting to climate change, promoting sustainability, diversifying the economy, and creating opportunities within global supply chains.
As the world’s largest producer of gem diamonds by value, Botswana recognises the significance of maximising the potential benefits of its mineral resources. President Masisi stated, ‘It is imperative that we develop value chains for raw materials to allow for greater value addition, spur innovation and growth, adapt to climate change, build sustainability, deepen economic diversification, and create opportunities for exploitation of global supply chains.’ He also highlighted that the government’s Reset Agenda, with a focus on harnessing technologies from the Fourth Industrial Revolution (4IR), aligns with the country’s vision for value addition in the mineral sector.
During the High-Level Dialogue on Enhancing Africa’s Value in Minerals on the sidelines of the Summit, Chipoka Mulenga, the Minister of Commerce, Trade, and Industry of Zambia, echoed President Masisi’s sentiments. He emphasised the need for African countries, particularly neighbouring states with abundant mineral resources like Zambia and the Democratic Republic of Congo (DRC), to collaborate in esta
blishing joint value addition industries. This collaborative approach would help curb capital flight and the exportation of jobs. Mulenga urged African states to vie
w each other as partners rather than competitors, leveraging each country’s comparative advantages and promoting intra-African trade while exporting value-added products to the global market.
Highlighting the importance of collaboration between governments and the private sector, Scott Nathan, CEO of the US Development Finance Corporation, stressed the necessity of creating an enabling environment for investment in mineral value addition. This includes establishing a robust regulatory framework, developing infrastructure, and ensuring access to finance.
The pursuit of value addition in the mineral sector presents a significant opportunity for African economies to diversify, create employment, and increase revenue. By harnessing innovation, technology, and knowledge systems, African countries can unlock the full potential of their mineral resources, contributing to sustainable economic growth and development in the region.
