Minerals and Africa’s Development:
The African Mining Vision (AMV) and the ECOWAS
Mineral Development Policy (EMDP)
ECOWAS Public Officials Workshop, Accra, 3-4
November 2014, Accra, Ghana
By Valerio Bosco, Ph.D
Economic Affairs Officer
AMDC - Governance Team
Objectives of Presentation

Present objectives, content and policy directions of the
Africa Mining Vision (AMV) and the ECOWAS Mineral
Development Policy (EMDP)

Compare AMV and EMDP approach to the role of
mining in socio-economic developmental mining and
key policy areas;

Explore strategies and progress in the domestication of
AMV and EMDP through Country Mining Visions.
Introduction
•
The AMV and the EMDP both
•
•
•
•
recognize the need for strategic shifts in the role of mining in
the transformation of Africa’s economies.
aim at transforming the mining industry in ways that optimize the
contribution of the sector to overall economic development;
seek to foster a coherent integration of mining sectors into local
economies to optimize mining benefits to local communities and
economies.
The AMV stresses that developing a strong, capable and
robust African mineral resources sector requires an
astute understanding of Africa’s relative advantages in
the global mineral value chain.
Introduction
•
The EMDP acknowledges commitment to the AMV and
seeks to operationalize it at the sub-regional level, taking
into account the specific context of the West African
region.
•
The implementation of the AMV and EMDP is expected
to take place at continental, regional and national levels each level provides advocacy platforms for various
stakeholders.
•
A coherent and coordinated strategy among all the
stakeholders is critical for optimum results from the
implementation process
The African Mining Vision (AMV)

Adopted in February 2009 by the African Union
Assembly of Heads of State and Government as the key
continental framework to promote mineral resourcebased development and structural transformation on the
continent.

Seeks to foster “a transparent, equitable and optimal
exploitation of mineral resources to underpin broadbased sustainable growth and socio-economic
development.”

AMV objectives:
i.
developing a comprehensive knowledge of Africa’s
mineral endowment;
promoting a sustainable and well governed mining
sector that is inclusive and appreciated by all
stakeholders including surrounding communities.
ii.
The African Mining Vision

Creating a mining sector that:
i) harnesses the potential of artisanal and small scale mining to
advance integrated and sustainable rural socio-economic
development ;
ii) creating a sustainable and well-governed mining sector that
effectively garners and deploys resource rents
iii) is knowledge driven and key component of a diversified, vibrant
and globally competitive industrializing African economy.
iii) environmentally friendly, socially responsible
appreciated by all stakeholders and surrounding communities.
and
iv) catalyses and contributes to broad-based growth and
development through upstream, downstream, side-stream and
infrastructure linkages; increases the level of investment flows
into mining and infrastructure projects to support broad socioeconomic development.
AMV Principles/Tenets for Development
AMV
Diversified
competitive
industry
Broad
economic &
social
linkages
Transparent
accountable
sector
Optimized
rents
Used on
economic
and
social
development
Good
governance
rooted in
development
Communities
&
citizens
participate in
assets
Equity in
distribution
of
benefits
ASM
improves
rural
livelihoods
Integrated
into rural
&national
economy
Environment
al &
social
responsibilit
y
Build human
and
institutional
capacities
Knowledge
economy at
all levels of
mining value
chain
Policy Directions from the AMV

Proactive role of government in the mineral sector;

Expanding role of linkages (backwards, side-stream and forward
linkages, knowledge, fiscal) of minerals in the local economy;

Optimizing fiscal policy regimes;

Transforming artisanal and small scale mining (ASM) into a
development tool;

Creating transparent and accountable mineral regimes;

Supporting regional integration and cooperation;

Upholding high standards of safety, health and environmental
protection; integrating CSR into local and national socio-economic
development plans
AMV- Action Plan
An Action Plan was also approved by AU policy organs in
2011. It includes the following clusters:
mineral rents and management;
geological and mining formation systems;
human and institutional capacities;
artisanal and small scale mining;
v. mineral sector governance;
vi. research and development,
vii. environmental and social issue;
viii. linkages and diversification; and
ix. mobilizing mining and infrastructure investment;
i.
ii.
iii.
iv.
x) policy and regulatory frameworks
The AMDC: Mission and Activities

Formally launched in December 2013;UNECA-AUCAfDB-UNDP as implementing partners.

Its mission: working with member States and their
national and regional organizations to enable mineral
resources play a greater transformative role in the
development of the continent through increased
economic and social linkages.

Facilitator of choice to support AU member States in
implementing the African Mining Vision.
The AMDC: Mission and Activities

Tracking and coordinating implementation of AMV;

Identifying gaps and areas of need in MS and providing
expertise to address such needs;

Undertaking policy research to develop policy strategies
and options for realizing the AMV;

Providing think-tank capacity for embedding the AMV into
Africa’s long term development;

Implementing continuous advocacy and information
campaign in order to engage stakeholders on AMV
implementation processes including CMV
AMDC results area
1.
2.
3.
4.
5.
6.
7.
Policy and Licensing;
Geological and Information System;
Governance and participation;
Artisanal and small-scale mining;
Linkages and diversification;
Human capacity and institutional capacities;
Communication and Advocacy
In each of those areas, AMDC carries out specific activities.
ECOWAS Directive for Harmonizing of
Guiding Principles
Outlines eight (8) guiding principles for the mining sector, they include:








Mineral as State resources (vesting of mineral resources in the
State, acquiring mineral rights etc.)
Protection of the environment (environmental protection obligations)
Protection of national interest (Stability Agreements, Fiscal
framework etc.)
Access to Information (Duty to maintain records, transparency,
good governance, public access to information etc.)
Human Rights obligations and mining activities (Human Rights
obligations, sustainable development and local community interests
etc.)
Dispute resolution (complaints procedure, settlement procedures
etc.)
Institutional and Implementation Arrangements (focus of
Member States, The president of ECOWAS Commission etc.)
General and Final provisions (general provisions, publication,
difficulties of implementation etc.)
ECOWAS Directive for Harmonizing of Guiding
Principles: Directions

Harmonize and coordinate policies and programmes
relating to the exploitation of natural resources

Ensure high standards of accountability for mining
companies and government agencies.

Promote human rights, transparency, and social equity
and also provide protection for local communities and
the environment in mining areas.

Balance the need to provide incentives for investors and
protecting the revenue base and country resources

Improve transparency in mineral policy formulation and
implementation processes in mining within the sub
region.
The ECOWAS Mineral Development Policy
ECOWAS Gazette of 2012 officially launched the EMDP developed as part
of the implementation of the ECOWAS Directive on “Harmonization of
Guiding principles and policies in the Mining Sector of 2009”
EMDP Vision: to harness mineral resources capital to facilitate sustainable
economic growth and integrated socio-economic development in the region
Mission: to promote the development of an efficient mineral sector in West
Africa
EMDP
(i) complements the ECOWAS Vision
(ii) Recognizes the AMV and commits to align to it
(iii) Recognizes and incorporates aspirations of the
Yaoundé Declaration of on ASM (2002);
(iv) Recognizes the Durban Declaration of 1997 and
(v) Developed through a consultative process
15
ECOWAS Mineral Development Policy - Objectives
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
Improvement in geological and mineral information;
Optimization of the mineral value chain
Regulation and development of ASM
Harmonization of institutional, legislative and regulatory
frameworks
Enhancement of environmental protection
Continuous enhancement of human and technological
capacity
Promotion of sustainable and integrated development of
local communities, mainstreaming CSR
Promotion and respect of human rights
Balance investor incentives with national development
objectives - OVERALL THRUST GUIDED BY THE DIRECTIVE
16
ECOWAS Mineral Development Policy: Themes
(Articles)
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
Improvement of geological and mineral information
Improvement and management of mineral revenues
Local content policy of mineral operations
Building institutional, human, technical and financial
capacities
Improvement of the Institutional, legal and regulatory
frameworks
Sustainable development and corporate social
responsibility
Development of infrastructure for improved access to
mineral sites
Development of Artisanal and Small Scale Mines
Strengthening regional cooperation
17
AMDC Result Areas and EMDP: Alignment
AMDC Result Areas/AMV
Action Plan
i. Geological and Mining
Information Systems
ii. Building Human and
Institutional Capacities
iii. Artisanal and Small
Scale Mining
iv. Governance and
Participation
v. Policy and Licensing
vi. Linkages, Investment
and Diversification
+
ADVOCACY AND
EMDP Programmes
i.
ii.
iii.
iv.
v.
vi.
18
Geological and Mineral
Information
Mineral Revenues
Management
Local Content in Mineral
Operations
Building institutional,
technical ,and financial
capacity
Institutional, Legal and
Regulatory Frameworks
Sustainable Development
and Corporate Social
AMDC Result Areas and EMDP: Alignment
(example)
AMV Action Plan/AMDC
Result Area
EMDP Programme
Result Area/Programme: Geological and Mining Information
Overall Objectives: Develop
comprehensive knowledge of Africa’s
mineral endowment to underpin
investment in exploration and mine
development
Overall Objectives: Improve geological
and mineral information
Actions: strengthen capacity of
Geological institutions, increase
regional mapping, upgrade mineral
inventories, strengthen African
collaboration through Organisation of
African Geological Surveys, continentwide information exchange, standardize
geological information management
methods – cadastre, stratigraphy,
legends, etc
Actions: budgetary support by member
States to acquisition of geological
information, information exchange,
establish MDF, encourage local
participation, technical support to
Geological institutions, allocate
resources for R&D
Some areas of AMV-EMDP alignment

Role of Linkages,

Local Content and Value Addition;

Fiscal Regimes and Taxation;

Transparency and Accountability; and

Regional Integration and Cooperation;

Community development
LINKAGES, LOCAL CONTENT AND VALUE
ADDITION: AMV

Expanding the role of linkages in the local and regional economy is
key to the implementation of the AMV - various forms of linkages up-stream, down-stream, lateral, knowledge must be established in
pursuant of the AMV.

National governments are required to promote the development of
industrial minerals and develop local content policy and identifying
and promoting viable beneficiation projects.

National governments are expected to pay attention to trade and
investment rules and treaties (such as WTO, EPAs, FTAs, BITs and
other related agreements) that could constrain efforts towards
linkages, local content and value-addition.
LINKAGES, LOCAL CONTENT AND VALUE
ADDITION: ECOWAS DIRECTIVE AND EMDP

I.
II.
III.
IV.
V.
VI.
In line with EMDP, Member States commit to;
Promote the participation of national private sector and publicprivate partnerships in the Mineral Sector;
Facilitate access to funding for local participation in mineral
projects in the Community;
Promote the pooling of local investment funds for access by local
mineral operators.;
Promote the development of national expertise and the
participation of Community experts in the development of the
mineral sector.
Promote the adoption of procurement policies by mineral operators
that give preference to goods and services produced locally;
Give preference to Community citizens who meet the skills
requirements and professional standards in recruitment
Fiscal Regimes or Taxation - AMV

The AMV calls for review of fiscal regime leading to ‘enhanced
share of mineral revenue accruing to African mining countries’. It is
in this context that contracts are supposed to be renegotiated.

One of the main concerns in this regard borders on various leakages
(transfer mis-pricing, cumbersome tax holidays and exemptions).

However the AMV maintains that fiscal regimes should ensure that
profitability of mines do not suffer in order not to discourage
investment.

The AMV also pays attention to revenue management, particularly
through transparent and participatory manner to tackle major
challenges facing mining countries
Fiscal Regimes and Taxation - EMDP

Adoption of the principle of resource rent taxes in the fiscal regimes
of member States;

Transparency in the approval (parliamentary approval) of mineral
agreements.

Mining Legislation must aim to optimize and protect revenues due
and accruing to the State from mining activities.

The fiscal framework should addresses specific fiscal issues exemptions to the payment of customs duties, payment of PAYE by
all employees of mining companies both local and foreign, taxation
of remittances.

Fiscal systems should ensure fairness and cater for the interest of
all stakeholders – governments, investors and communities

Ensure transparency in mineral revenue collection and equitable
distribution of revenues between local and national authorities
Transparency and Accountability :AMV

The AMV advocates for meaningful participation by all stakeholders
– especially communities and CSOs. Respect for human rights is an
integral component of transparency and accountability. To achieve
this, the following activities must be implemented:

strengthen transparency and access to information;

improve public participation in governance systems;



resource and build capacities of communities and legislatures to
provide effective
oversights and make informed decisions; and
empower human rights institutions to monitor and enforce
human rights standards in the mining sector.
Transparency and Accountability: EMDP

Mining right holders are to provide timely annual reports on its
mineral operations to the appropriate authority.

False, misleading, incomplete or knowingly misrepresenting
information to the public or State shall be penalized; Mining Rights
granted should be considered public and therefore documents
made available to the public.

Member States are encouraged to sign up to the Extractive
Industry Transparency Initiative (EITI). Member States are
required to conduct periodic audit and report on the activity of mining
companies and mining right holders are required to cooperate with
the competent entity or individual conducting such audit.

No data confidentiality on issues which relate to environmental
degradation, claimed degradation of human health, or worker safety.
Regional Integration and Cooperation: AMV

The implementation of the AMV involves Regional Economic
Communities (RECs)

The RECs are broadly required to ensure regional harmony in the
implementation of the AMV and to ensure that existing processes
towards integration and cooperation are enhanced

RECs coordinate certain activities including taking the lead in
corridor development and the development of regional infrastructure
- foster regional integration, cooperation, sub-regional linkages and
diversification.
Regional Integration and Cooperation: EMDP

The alignment of EMDP to AMV ensures that policy
development in the sub-regional are in sync with
continental aspirations;

Promote harmonization of mineral development codes
and mineral acts

Develop; regional geological maps, trans-border mineral
development regulatory frameworks, regional spatial
development corridors
Conclusions

Both AMV and EMDP underscore importance of the regional and subregional dimension in promoting developmental mining; linkages, local
content, value additional, optimal fiscal and taxation framework, geological
information, promotion of ASM, optimum revenue management system,
community development,

Coordinated CMV processes and mineral sector reform initiatives aimed at
promoting AMV-EMDP alignment provide a crucial opportunity to foster
regional and sub-regional integration by facilitating economic
transformation and inclusive growth beyond the national dimension.

The need to exploit regional opportunities within national planning
mechanisms and policies for the extractive sector is underlined in the
recently developed Country Mining Vision Guidebook.

Timeframe for the domestication of AMV should be designed along with a
monitoring and evaluation framework ( ECOWAS approach could be
adopted).
Thank you
for your attention!