By Dogga Morris, SSMJ Juba, Friday (November 15, 2024) - The International Conference on the Great Lakes Region (ICGLR) has suggested new recommendations to increase the value of natural resources and prevent illicit mineral trade in member states. At the 25 th meeting of the ICGLR forum in Juba, the comprehensive review seeks to promote profitable trade in minerals across the Great Lakes Region by addressing challenges facing the mining sector. The Great Lakes Region, consisting of about 12 cou
By Dogga Morris, SSMJ
Juba, Friday (November 15, 2024) - The International Conference on the Great Lakes Region (ICGLR) has suggested new recommendations to increase the value of natural resources and prevent illicit mineral trade in member states.
At the 25 th meeting of the ICGLR forum in Juba, the comprehensive review seeks to promote profitable trade in minerals across the Great Lakes Region by addressing challenges facing the mining sector.
The Great Lakes Region, consisting of about 12 countries, has abundant mineral wealth, including gold, coltan, and diamonds, which has the potential to boost its economies through improved processing and export strategies.
However, despite rich mineral deposits, many ICGLR member states have struggled to maximize the economic benefits of natural resources, owing to a lack of strong policies to enhance the value of minerals.
Little processing leads to the export of most raw minerals, which results in lost revenue and job opportunities..
The guidelines aim to enable member states to optimize the potential of mineral resources.
This builds on findings from a previous meeting held in Kinshasa, Democratic Republic of Congo, focused on the gold sector.
Dr. Emmanuel Makumba Mali, Director of the Democracy and Good Governance Program at ICGLR, stated that for member states to fully harness the true value of their minerals beyond just extraction, there is a need to adopt mineral policies that incorporate value addition and beneficiation.
Regulatory framework
Countries should develop policies grounded in factual analysis, Dr. Makumba said. “And to do this, countries should conduct detailed mineral value assessments.
We do not want to have a copy-paste situation, so countries have to invest in conducting assessments; they should have market-specific analysis, and they should also most importantly leverage on their comparative advantage.”
A transparent and stable legal framework is paramount for attracting investment. Makumba urged member states to align their regulations with international standards, stating that a clear, transparent legal framework promotes the flow of investment and nurtures mutual trust between governments and investors.
Capacity building
Noting that restrictions are common and relatively easy to impose in the region, he stressed the importance of understanding local market capacities, before doing so.
He added, “We have to be in a position to understand our market. How influential is our product? What kind of capacities do we have? What are the effects of imposing import restrictions? And to do that, we need to conduct feasibility studies, in-depth analysis, and also set clear targets for verification.”
The guidelines further call for a systematic approach to enhance local content in the mining sector by prioritizing local hiring and skill development, restricting the employment of foreign personnel, and ensuring that technology transfer remains flexible.
While doing so, he said, governments have to invest in the development of human capital, which is critical for value addition.
“We need to rethink our educational curricula to include entrepreneurial skills that prepare our youth for today's challenges."
Furthermore, improving access to finance for small and medium-sized enterprises (SMEs) and artisanal and small-scale mining is essential for mitigating risks faced by small entrepreneurs.
"We must help SMEs secure property rights and streamline licensing processes," Makumba urged. "They should feel welcomed, not criminalized."
Tax and non-tax incentives
Furthermore, the expert acknowledged the complexities surrounding tax incentives, urging that there must be careful dialogue with local investors to ensure that tax holidays come with guarantees for skill transfer and local production.
To ensure fair competition, there should be open dialogue and consultation with local investors. This will guarantee that, during the grace period, foreign investors transfer skills, promote local production, and offer non-tax incentives to citizens, he stated.
By processing minerals domestically, countries can significantly increase their value and reduce import reliance.
“When we dig out ore which is valued at $1, we should not send it out to somebody to add $2 and bring it back to our region to sell it for $100. What we are saying is that when we dig something for $1, we should add $2 and sell it for $100; that is value addition,” he concluded.
Most speakers during the meeting voiced commitment to adopting policies that enhance value addition to minerals.
Reflecting on the theme of the forum, ‘a Harmonized Regional Approach for Mineral Value Addition and Cross-Border Trade for the Maximization of Benefits from Mineral Resources and Promotion of Peace and Stability’ South Sudan’s Minister of Mining, Martin Gama Abucha, expressed that the country is committed to ensuring that all the necessary.
ICGLR is an intergovernmental body that brings together 11 countries in an attempt to bring about sustainable peace, security, and development.
It was founded in the 1990s, at a time of conflicts in the DRC and the 1994 Rwanda genocide. The ICGLR is an intergovernmental body that brings together 11 countries.
Its members are Burundi, the Central African Republic, the Republic of Congo, the DRC, Kenya, Uganda, Rwanda, Sudan, Tanzania, Zambia, Angola, and South Sudan.
In October 23, ministers from the Great Lakes region met in Nairobi to draft a plan to combat the illicit trade in minerals.
Part of the strategy included plans to harmonize laws, formalize the mineral sector, increase transparency, and create a database to trace the origin of minerals.