Minister Gwede Mantashe: Africa Mining Indaba

• Published date: 09 May 2022
• Publication title: South African Official News

It is an honour and privilege to participate in this year's Investing in African Mining Indaba. This event has continued to grow in stature and numbers over the years. This is testament that Africa remains a key destination for mining investment.

We are pleased to host you in a physical format after a period of virtual conferencing due to the outbreak of the COVID-19 global pandemic that disrupted the global economy and changed the ways of doing business.

As a result of the effects of the COVID-19 induced economic shocks, the current global economic environment remains uncertain. We must build on the experiences learned from the pandemic to reimagine our economic growth path and protect our economies from future shocks.

This year's mining indaba happens with the backdrop of high energy prices, which pose a significant inflationary risk to the poor and emerging markets. Without any doubt, increased energy prices continue to be of great concern for our governments and investors alike. The African continent needs to build resilience against energy supply shocks through the exploration and development of our indigenous energy sources.

It is, therefore, not surprising that we convene this Indaba under the theme: 'Evolution of African Mining: Investing in the Energy Transition, ESG, and the Economies.'

The history of mining in Africa is rooted in the colonial and neo-colonial exploitation of the African continent. The impact of colonialism on mining was such that infrastructure was established to reflect the colonial mining and repatriation of mineral resources to develop the economies of the colonial powers. Roads and railways were built from the mines to the ports, with little to no consideration of Africa's social and economic development.

Today, millions of Africans have no access to energy. This represents an electricity access rate for Sub-Saharan Africa of just over 48 percent, the lowest in the world.

Our considered view is that our focus should not only be on investing in the energy transition but equally on investing in universal access to energy.

Universal access to energy and the Just Energy Transition will not only enable the improvement of lives and livelihoods of African people, but it will also boost economic activity and, by extension, mining activity.

Widespread energy access on the African continent is an imperative of our time and requires our immediate and concerted effort.

Historically, investment decisions were based on whether there would be sound...