MANOAH ESIPISU AND OWN CORRESPONDENT, Lusaka | Wednesday
ZAMBIA has launched a concerted effort to reassure mine investors nervous about the growth of conflicts in the region fuelled by mineral wealth.
Vice-President Christon Tembo told delegates at a mining conference that despite a huge natural heritage, Africa attracted limited direct foreign investment as it was unable to guarantee security for international firms.
Tembo suggested that while countries spent their wealth in unnecessary conflict, vast tracts of mineral-rich soil remained unexploited because little cash was put aside to develop energy, transport and telecommunication facilities in mining areas.
”We are saddened by the fact that most of the conflicts in the region are fuelled by proceeds accruing from the illicit sale of the region’s mineral products,” Tembo told the European Union-Southern Africa Development Community (SADC) mining forum.
”The political climate and the rule of law espoused by SADC must reassure our partners from Europe, North America, and Asia on the security of their investments in our region,” he said.
”The region produces raw to semi-processed mineral products for export. This export-oriented industry has faced persistent marketing difficulties on the global market. Part of the solution lies in the establishment and development of downstream processing industries in the region,” he said.
Angolan diamonds are at the heart of a 25-year civil war between the Angolan government and Jonas Savimbi’s rebel Unita, while the armies of Zimbabwe, Angola and Namibia are in Laurent Kabila’s Congo fighting a war waged by splintered rebel groups that have the backing of Rwanda and Uganda. Analysts say Congo’s minerals are a key factor in the fighting.
Mining contributes an estimated 60% of SADC’s foreign exchange earnings, 10% of gross domestic product and five percent of employment in the region, according to EU data. – Reuters