African Union Chairperson, Dr. Nkosazana Dlamini-Zuma has urged African countries to ensure that they get more value from their abundant mineral resources.
Dlamini-Zuma made this call in Johannesburg during the ongoing Junior Indaba, a platform through which junior mining companies take stock of their operations and map the way forward.
Acknowledging that African countries should be getting more than they currently are from their mineral resources, Dlamini-Zuma suggested that a “win-win approach” was needed, where Africans benefitted from the exploration of mineral resources by the private sector. “There is need for more investment in value addition and beneficiation processes.”
Further, she said lopsided terms of mining contracts had created loopholes for illicit capital outflows. “The advantage which mining companies have is that they have legal budgets that are higher than national budgets of countries in which they were negotiation to mine.”
She also bemoaned that mining companies claimed losses over long periods of time to avoid paying tax, even though it had been found in some cases that the companies had been making profits over a prolonged period.