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Which countries are preferred for investment in African mining?

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  • Time of issue:2021-03-11
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(Summary description)In 2016, in the context of global mining development falling into a regression, African mining recorded a high growth rate of 62%, and there was no lack of Chinese companies' participation. According to the "2016 Africa Mining Attractiveness Ranking" report previously released by Fraser, Morocco, Burkina Faso and Ghana have become the top countries.

Which countries are preferred for investment in African mining?

(Summary description)In 2016, in the context of global mining development falling into a regression, African mining recorded a high growth rate of 62%, and there was no lack of Chinese companies' participation. According to the "2016 Africa Mining Attractiveness Ranking" report previously released by Fraser, Morocco, Burkina Faso and Ghana have become the top countries.

  • Categories:Company news
  • Author:
  • Origin:
  • Time of issue:2021-03-11
  • Views:0
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In 2016, in the context of global mining development falling into a regression, African mining recorded a high growth rate of 62%, and there was no lack of Chinese companies' participation. According to the "2016 Africa Mining Attractiveness Ranking" report previously released by Fraser, Morocco, Burkina Faso and Ghana have become the top countries.

According to Nigeria’s "Business Daily" recently reported that the global mining and metal industry transaction volume in 2016 dropped by 9% compared to 2015, to 44.3 billion US dollars, the lowest since 2004, but in Africa it increased by 62%. Among them, two of Africa's top ten cross-border transaction contracts are related to China. Ernst & Young, the accounting firm that provided the data, said that the prospects for the mining and metals industry in Africa in 2017 are still promising.

According to the "2016 Africa Mining Attractiveness Ranking" report previously released by the mining research organization Fraser, the mining environment in Africa has slightly improved compared with 2015, and the overall increase in attracting foreign investment has been relatively large. Although the overall performance of African mining has not yet returned to its peak in 2011, in terms of attracting foreign investment, Africa has successfully surpassed Oceania, Asia, Latin America, and the Caribbean.

Fraser ranks the attractiveness of mining in the world every year. The main factors participating in the evaluation include: the government's institutional policies, legal systems, taxation systems, infrastructure, political stability, and labor regulations.

In terms of overall attractiveness, that is, mining development potential, Morocco has become the highest ranked African country, ranking 24th in the world. African countries closely followed include Burkina Faso (29th) and Ghana (31st). Guinea and Kenya rank the bottom of the African countries. This is mainly because Kenya has introduced a new mining law, which stipulates that 10% of mining companies' own funds must be paid as state-owned. In Guinea, it is because of the increase in the franchise fees of gold mines, and the international gold price has been falling.

Despite a decline in its ranking from last year, Botswana is still the best performer among African countries in terms of mining legal system. The reason for the slight decline is trade barriers. Nevertheless, Botswana still ranks 14th in the world in terms of the mining legal system, followed by Morocco at 24th.

In addition, among the 109 participating countries, Zimbabwe (106th) and Niger (103) are the only two African countries in the bottom ten in terms of mining policy. The main problem in Zimbabwe is corruption and the seizure of private assets. In addition, state-owned mining companies have a 50% stake in the development of local mineral resources. Niger is mainly due to double standards and inconsistencies in the implementation of policies and regulations.

According to the analysis of the China-Africa Trade Research Center, global mining development in 2016 hit a new low since 2004, but mining development on the African continent has increased by as much as 62%, and Chinese companies are also actively participating in African mining investment. At the same time, the "2016 Africa Mining Attractiveness Ranking" report shows that the mining environment in Africa has slightly improved compared to 2015. Among them, the overall increase in attracting foreign investment has been relatively large, while Morocco, Burkina Faso and Ghana are ranked by The former countries have also become the preferred countries for investment in African mining in 2017.

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