maanantai 9. elokuuta 2010

Africa has huge and partly unused resources - What is needed is entrepreneurship!

World population has grown by one billion in the past decade. Nearly half of the population is under 25 in age. The world population is about $6.6 billion and Africa’s population $0.9 billion. Africa’s share of world population is 14 % and of trade about 3 %. Africa's population has more than doubled since 1970 and is growing near 3% per year. Africa’s consumption of its own refined oil products is about 30% and only about 3% of the global carbon emissions. Cheap fossil fuels have been the major contributor of economic growth and welfare (BNP per capita) in all other continents except Africa. The coastal and offshore Africa is the oil and gas reserve for consumers in the rich countries. Africa needs multiple linkages to the OECD countries and especially inward FDI flows. In the African country-side, small-scale farmers are left alone[1] when e.g. China and India have implemented a strong agricultural policy. The climate change can hit Africa by natural disasters[2] and increase investment costs from 1% to 2%[3] . Especially, agricultural exporters of African LDCs have a risk to fall behind of the global trade by 2030[4] without an efficient infrastructure.

The interdependency of energy and politics in Africa is a major concern. Africa needs proper electricity grids as much as clean water. Africa has unused hydro electrical power capacity[5] but unpredictable weather patterns effect on electricity supply. Hydroelectric power can only in some regions solve the energy problems, since pure water is the most limited resource[6]. Water recycling is needed in Africa. About 50% of electric power in Africa is generated by coal-based facilities, while natural gas is coming instead. The South Africa has developed energy infrastructure with a nuclear power plant, large deposits of coal and 4 oil refineries. The electrification level in the South Africa and Eqypt is 70% but in Sub-Saharan Africa[7] only 20%. Africa needs foreign investors in transmission lines. The privatization of state-owned power firms is one option. Both the SADC[8] and the ECOWAS[9] have organized regional networks and power pools for regional electricity markets. Countries with limited power generation capacity can get access to power, without investments in new facilities. The surplus power stations can be run at maximum output to achieve the scale-economies. The South Africa, Ghana and Zambia are net exporters of power[10]. There is a social issue: Countries can purchase power in bulk and redistribute it locally at a cheap price. Unfortunately, the rural Africa is excluded of that because of the lack of electricity grids.

Africa is well endowed with oil and gas reserves. Africa’s economically recoverable oil and natural gas reserves account for 10% of the world’s total. Africa consumes 3.4% of global oil and 2% of gas but produces 12% of global production of oil and 6% of gas. Africa consumes less than 30% of its oil and gas and exports the rest. Oil and gas resources are concentrated in the North-West-Africa. Algeria, Angola, Libya, Nigeria are the major producers[11]. In the North Africa, the diversification towards energy clusters is going on. Global oil firms are all reliant on the North Africa’s oil because of its high-quality[12]. The Gulf of Guinea has proven oil reserves of 50 billion barrels (Saudi Arabia has 261 billion) that are locating out of the coastlines. The offshore location is an advantage for extractors, since big oil tankers can tank crude oil directly from oil platforms and navigate across the Atlantic towards America, Europe or Asia. Along the coast of West Africa from Mauritania to Angola, off-coast exploration is yielding major results. Oil industry experts predict that by 2022 the industry will invest over $40 billion in the Gulf of Guinea[13]. There have been noticeable changes in the geography of oil and gas in Africa since Africa is still open to foreign oil exploration[14].

The US is the world’s leading oil consumer. Rapid economic growth in China will increase oil demand[15]. Africa is a key region for China’s oil supply. Chinese companies are active even in Sudan. China’s trade, investment and aid activities in Africa have been growing rapidly over the past decade. In 2006, China’s aid to Africa totaled $5.75 billion and trade trade with Africa reached $56 billion[16]. China activity for partnership with Africa has a technological resoning. Africa’s high-quality crude oil is ideal for most of Chinese refineries that cannot refine heavy, sulphur-rich crude oil from the Middle East or Venetzuela. The North Africa countries have modern and large-scale refineries that are lacking in most of oil fields in the Gulf of Guinea countries[17] where downstream investments in current or new oil plants are desperately needed to increase the refinery capacity. Without efficient industrial infrastructure, the West Africa cannot utilize its rich oil and gas resources. Because of technology and financial barriers to overcome when building a new refinery[18], the Gulf of Guinea region needs reliable partners.

Nigeria, Africa’s most populous country[19], accounted for $52 billion from exports of crude oil, natural gas and refined petroleum products in 2006. Nigeria exports 90 % of its oil production[20]. Increased exploration in deep water has been successful and the proven reserves can reach 40 billion barrels by 2010[21]. Nigerias’ oil and gas industry will double its production offshore in the near future through development of LNG (Liquefied natural gas) plants[22]. Offshore Nigeria's gas earlier flared will hopefully soon be converted into the LNG and integrated with the West African Gas Pipeline (WAGP) for natural gas export to Benin, Togo and Ghana[23]. Nigeria's national oil company needs to take the control of oil and gas sector since Nigeria’s economic development is strongly dependent on oil business[24]. Angola, another big producer in the Gulf of Guinea region, exports 95 % of its oil production. Angola exports of crude oil, natural gas and refined petroleum products are near $28 billion[25]. The U.S. and China have both roughly 40 % shares of Angola exports production. Angola has also been successful in deep-water discoveries. Oil reserves are 9 billion barrels. China assists Angola in infrastructure reconstruction[26]. China’s primary interest is to get a trong foothold in Angola’s oil fields when Angola’s oil production is doubling in the near future. Angolan national oil company (Sonangol) is the one that grants exploration licenses[27]. However, China is doing serious collaboration with African countries. The term of rules can be more favourable to China than to Nigeria or Algeria but this is exactly what global trading is all about. The best players are the winners.

São Tomé, a former Portuguese colony, consists of two small islands with population of 200,000. São Tomé could become the Kuwait of Africa of having the biggest per capita income. Nigeria controls most of the islands nearby its coastlines. The treaty made provides 60% of the revenue to Nigeria and the rest to São Tomé. The proven oil reserves allocated to São Tomé are 4 billion barrels[28]. São Tomé is a sad story of oil politics. The contracts with oil yets are favourable[29]. The president is accused of being part of the bad deals[30]. In São Tomé the petro-wealths have been more a curse than a blessing[31]. Equitorial Guinea with 500,000 people consists of consists of the mainland Río Muni, islands of Bioko, Annobón and of some small islands. The country has become one of the largest oil and gas producers in region[32]. GE Petrol, Equatorial Guinea’s national oil company manages the government’s interest stakes in production sharing contracts with multinationals. Oil reserves are 12 billion barrels. In 2006, oil exports income was $9 billion[33]. The major export markets are: the U.S. 24% and China 28%. The average income is $5,000 per capita that might indicate that oil incomes have been more a blessing than a curse.

African countries need to control their national oil reserves. The North Africa has made a lot of progress in that. The Gulf of Guinea is lacking behind. What is needed is the diversification towards related industries like the plastic industry. Most of countries in the region have the state-owned, national petroleum firms aimed to control licenses to exploration and extraction. This is a good starting point assuming that national petroleum firms have mandates and competences to negotiate efficiently with multinationals. Russia and Venezuela have solved to problem by the national monopoly. Both countries have taken energy exploration projects in government’s control and raised taxes on foreign petroleum firms. The countries in the Gulf of Guinea need resourceful foreign partners and their FDIs. They have to solve the so-called incomplete or multi-objective contracting of how to share investment risk and profit with multinationals. From the national economy point of view, the governments need annual and substantial incomes from contract-based risk-income-sharing and from taxes on foreign petroleum firms. The signature bonuses are not acceptable because there is a risk of corruption and mismanagement of public funds[34]. The major course is the corruption that has claimed to be related to the top politicians in the country[35]. Sudan is a sad example of bloody internal conflicts in which its own government ignores human rights. The major ethical problem in global markets is to what extent multinationals should take into account political issues[36].

Natural gas consumption worldwide will increase 63% until 2030. Natural gas remains the key fuel in the electric power and industrial sectors. Natural gas burns more cleanly than coal or petroleum products. The national/ regional plans to reduce carbondioxide emissions encourage the use of natural gas to displace liquids and coal. Almost 3/4 of the world’s natural gas reserves are located in the Middle East and Eurasia[37]. Africa and Asia (excluding China and India) are expected to be important sources of natural gas production in the future. These two regions combined are expected to account for 21% in 2020. About 50% of the production from Africa is exported. In 2030, the export share of production from Africa is projected to increase. Several pipelines from North Africa to Europe are under consideration, and LNG export capacity in West Africa continues to expand. Reserves in the world are fairly evenly distributed on a regional basis. Despite the increase in natural gas consumption, particularly over the past decade, regional reserves-to-production ratios are substantial. Worldwide, the reserves-to-production ratio is estimated at 65 years[38]. The leading regions in the ratio are: Middle East 100, Africa 88, Russia 80, and Central and South America 52 years.

Africa has rich resources producing over 60 metal and mineral products. The South Africa, Ghana, Zimbabwe, Tanzania, Zambia and the DRC dominate the mining industry, whilst Angola, Sierra Leone, Namibia and Botswana rely on mining as a foreign currency earner. Africa host even 30% of the world's mineral and metal reserves, including dominance in truly strategic metals: 25% of bauxite, the aluminum ore, 40% of gold, 60% cobalt and 90% of the world's PGM reserves. Africa’s deposits of antimony, fluorspar, hafnium, manganese, phosphate rock, titanium, vanadium, vermiculite and zirconium are rich[39]. The South Africa holds 35% of the world’s gold reserves, 55% platinum group metals, 80% manganese ore, 68% chrome ore and 21% titanium metals[40]. The South Africa is the world's biggest producer of gold and platinum and a big producer of base metals and coal and diamonds. The West Africa’s belt from Guinea to Togo is the most diversely mineralized and includes chrome, asbestos, talc, nickel, manganese, gold, iron (or ferroalloys), tin, niobium and tantalum[41]. Almost the entire world reserve of chromium is found in South Africa. Africa contains a major share of world reserves of tantalum and germanium in the DRC and Namibia[42]. Manganese reserves are big in South Africa, Gabon (among the largest in the world) and Ghana[43]. Guinea has 24% of the world’s bauxite reserves and over 90% of Africa’s bauxite production.

The South Africa has in its territory and in neighboring countries a mining cluster. The country has no deposits of bauxite, the aluminium ore that is exported from Guinea where the exporting of bauxite accounts for 20% of GDP and 90% of exports. Because the aluminium extraction and smelting process is energy consuming, an optimal location for it is the South Africa that has low energy costs, deriving largely from coal deposits. The South Africa produces 2.7% of global aluminium (the 8th largest producer)[44] and has world-scale primary processing facilities in carbon steel, stainless steel, aluminium, gold, platinum and diamonds[45]. The mining-based cluster has got a lot of dynamics from privatization programs. During past decade, Western, Chinese and Indian multinationals have played a vital role in the country, not only in the maining cluster. Especially, China and its emerging multinationals have been active in the South Africa. The South Africa is the most industrialized country in Africa, accumulating 25% of Africa’s GDP, 40% of industrial output, 45% of mineral production and 50% of electricity. The country is an example of the importance of mining and of the manufacturing diversified from maining.

Copper is the second in use of base metals after iron/ steel. The deposits of copper are scare[46]. The Katanga Plateau (914-1,829m high) from the DRC to neighboring countries is the enormously rich mining region, which contains 34% and 10 % of the world's copper, and some lead-zinc sulfides, uranium oxides, tin, radium, uranium, and diamonds. The world's demand for copper and cobolt is huge. Copper and cobolt are the so-called strategic base metals. Copper is widely used in the energy sector and electrical/ electronic products. Cobalt is used in aircraft engines and in globally popular mobile phones and devices. Zinc is mainly used to galvanize steel, metal alloys, die casting, batteries, paints and rubber. Although zinc is a common metal, the global demand exceeds the supply and major zinc discoveries are expensive to main. In Africa lead-zinc sulfides are the primary form in which zinc ore are in deposits. North Africa has the largest deposits and production of zinc. Lead ores are more widespread. Lead has taken the high road in the bull market[47].

Katanga became independent in 1960 supported by Belgia. Katanga is a rich region. In 1963, the Katanga’s independence was formally ended, and Katanga was joined to the DRC. From the 60s to the 90s, the mineral deposits were controlled by state-owned firms like Gécamines[48]. Since 2004, there has been an influx of foreign maining yets into Katanga[49]. These yets utilize Katanga’s cobolt and copper ores. The export primary of metal products leaves the lion’s share of value added to them. Kataga is among the poorest regions in our globe. As the UN has repeatedly declared, it is question at leat immoral exploitation of the DRC’s natural resources. Foreign companies have misused the political chaos in the Mid Africa. During the chaos, they took the control over Katanga’s mining industry. Later, the DRC has launched a review of the legality and fairness of over 60 mining licenses, most of which were negotiated during the civil war and the transitional period that followed.[50] A big part of China’s and the EU’s copper and cobalt production is based concentrates from the Katanga[51]. The global price level of copper and gobalt is favourable but the DRC leaves the major part of value added to foreign yets. What are needed in the Mid Africa is industrial investments and win-win-partnership.

The investments in exploration and mining in Africa has been focused on gold and diamonds and some precious metals[52]. Gold and allied metals are widely disseminated in Africa. The South Africa’s reserves of gold constitute 50% of the world total and the gold mining employs 60% of about a half million miners. Gold is found in the Katanga’s copper belt, and in Burundi, Côte d'Ivoire, Gabon, Ghana, Mali and Zimbabwe[53]. Guinea has large reserves of gold, base metals, iron ore, bauxite and diamonds[54]. Gold and allied metals could boost Africa’s technology entrepreneurship[55]. Ghana has a long tradition of goldsmiths. Ghana’s economy is burdened with debt. The government is selling the biggest gold producer, Ashanti Goldfields Company[56]. The Ghanaian economy needs FDIs to develop the Ghanaian gold cluster. What is the critical catalyst of cluster development is, however, the variety of business firms and, of course, export orientation. Hopefully, the pritization of Ashanti Goldfields Company and other state-owned enterprises could be a step towards industrial dynamics. Countries like Ghana needs desperately the transfer of foreign technologies in the fine-mechanics to ultize these minerals in the small-scale industrial activities.

Stones have bull markets globally. Namibia is an example of the countries that have deposits of good-quality stones, displaying a variety of attractive colours, patterns and textures. The main rock types are marble, granite, dolerite, picture stone, conglomerate and sodalite. Until recently, Namibia has exported first-grade blocks of marble, granite and other dimension-stone varieties to countries such as Germany and Italy to be cut and polished. To achieve a sustained contribution from the mining sector to its economy, Namibia has stipulated a conducive and enabling legislative, fiscal and institutional environment[57]. However, the major growth area of Namibia’s mining industry is offshore diamond mining, and the country features among the world’s top-five producers. The problems are the same as in Ghana. Diamonds and other precious metals are strategic in the global perspective. Namibia needs investments in the fine-mechanics to ultize these minerals in the small-scale industrial activities. The EU countries such as Germany and Italy sell the value-added products (as tiles and ornaments) produced of Namibia’s stones all over the world at premium prices. Namibia receives less than 10% of the final value of a unique natural resource. This type of business model benefits only marginally Namibia and other poor countries[58].

The least developed countries, LDCs lag behind as the rest of the world advances. Many of the LDCs locate in the Sub-Saharan Africa. Many of LDCs in Sub-Saharan Africa are logistically isolated from the world trade flows and, a small portion of population is living within 100 km of the coast or of a navigable river compared 89% in high-income countries. Africa has poor roads and most of the rural areas are land-locked. In average, the LDCs’ merchandise exports have three distinct weaknesses[59]: A narrow range of products, a lack of diversification of export markets and low technology content. In 2004, LDCs as a group accounted for only 0.6% of world exports, $61.8 billion with 34% growth. Growth figures mask the division of LDCs into three groups of exporters[60]:

1. Oil exporters (Angola, Equatorial Guinea, Yemen, Sudan, and Chad) accounted for 47 % of total LDC exports with the growth rate of 52 % in 2004. Angola alone earned $18 billion[61] in 2005. However, the boom in oil exports seems not to provide the development logic away from the poverty. Oil incomes fortunate few and ecological problems are escalating.

2. Manufacturers of goods (Bangladesh, Myanmar, Cambodia, Madagascar, Nepal, Lesotho, Haiti, and Laos) are dependent on exports of ready-made garments. They have lost their positions in competition against China and India.

3. The rest 37 of LDCs are commodity exporters, often dependent on primary agricultural products. They have difficulties to overcome trade barriers created by the subsidies in the EU and US. The weak export performance of LDCs is partly dependent on the unfairness of the commitments of their trading partners, particularly of multinationals.

The UN’s aspiration[62] is the duty-free and quota-free market access to global markets on a non-reciprocal basis for all products originating from LDCs. This is the issue of politics. The US treatment of LDCs has blamed to be dependent on its world politics. Japan favors oil importer LDCs. The EU’s weakness is its unfair agricultural policy that has stopped imports from African LDCs. In spite of the good will that the leading industrial countries convince in the UN or in the WTO, the average level of preferential (reciprocal and non-reciprocal) imports from LDCs into these countries is marginal. In terms of markets, the EU-15-countries absorbed about 40 % of LDC exports in 1995. During the WTO-period from 1995, the LDCs’ share has dropped to about 30 %. The US has increased its relative share into about 23 %. Japan has not yet its market open to LDCs, the share is 4.2 % that is even lower than that of Thailand, 5 %. China has increased its relative share from 3.5 % to 17.8 %. China’s politics is to favor LDCs both in trade and investments.

Africa’s LDCs need export incomes. The MFA/ ATC framework in the international trade of textile, clothing, leather and footwear favorable for LDCs in integrating their trade into WTO disciplines. LDCs were not able to do that. Africa’s LDCs are dependent on the flexible rules of origin in preferential agreements what the U.S. has provided under the AGOA. The EU favors its potential members[64]. Under the WTO, the EU and the U.S. can favour imports from geographically proximate major preferential trading partners like Tunisia and Morocco in Africa. The Sub-Saharan Africa has lost its share. The high growth in cotton clothing exports by Asian suppliers has been the reason for downsizing 250 000 jobs in Africa[65]. African countries did not invoke the special safeguard mechanism to temporarily restrict Chinese exports. This is paradox, since the ATC’s anti-dumping measure that is available until 2008 could provide time for African textile and clothing producers to improve competitiveness and add more value to their exports[66]. African countries reacted too late, although the damages to domestic producers were serious in Africa. They did not expect the quota system to end so soon, despite the ATC.

[1] The US cotton subsidies are out of mind. Africa’s small farmers have no access to inputs and their harvests cannot get to the markets on time.
[2]The UN’s Environment Programme
[3]The World Bank Development Report 2005
[4] The World Trade Report 2006
[5]Congo alone reported to be sufficient to provide three times as much power as Africa presently consumes.
[6]Many African countries view hydroelectric power dependency with skepticism. Low rainfalls have forced temporary power cuts e.g. in Ghana's hydroelectric facilities.
[7] Ghana, Senegal, Burkina Faso and Cote d’Ivoire in West Africa have rural electrification programmes.
[8]The Southern African Development Community
[9] The Economic Community of West African States
[11]Other producers are Egypt, Sudan, Equatorial Guinea, Congo Republic, Chad, Gabon, Tunisia and Cameroon. In fact, many more African countries like Ghana could become important net oil exporters in the long run if recent trends will continue.
[12] The North African nations have already revised oil law which restored state-control to exploration projects. Algeria has planned a new windfall tax
[13] West African Oil, U.S. Energy Policy, and Africa’s Development Strategies by J. Anyu Ndumbe
[14] Some West African producers such as Cameroon, Chad, Congo, Equatorial Guinea, Gabon, Ghana, Mauritania, Niger, Sao Tome and Principe, and Ivory Coast are expected to benefit from the substantial exploration activity, especially if current high oil prices persist. International Energy Outlook 2007. Chapter 3: Petroleum and Other Liquid Fuels
[15]. China contributed 35% of the worldwide demand growth for crude oil in the period 2001-05
[16]About 80 % of China Exim Bank’s projects in 36 African countries are committed to infrastructure development, such as railways (Benguela and Port Sudan), dams (Merowe in Sudan; Bui in Ghana; and Mphanda Nkuwa in Zambia), thermal power plants (Nigeria and Sudan), oil facilities (Nigeria), and copper mines (Congo and Zambia). China Exim lending practices tend to follow China’s foreign policy, with package deals frequently focusing on projects that provide access to raw materials, and on concessional loans for economically and politically important countries.
[17] The states have mainly small, inefficient, poorly maintained and outdated refineries in states’ ownership control. The quality of the oil products produced in many of the refineries does not meet international standards. The refining production mix is not either in balance with the oil product demand in export markets.
[18]The investments of a new refinery producing 100,000 barrels per day of is estimated to be 1-$1.2 billion.
[19]In Nigeria, over 50 % of the population is living on incomes below $1 per day.
[21]Commercial discoveries by Triton, Chevron, Shell, Exxon-Mobil, and Texaco.
[22] Royal Dutch Shell, which produces nearly half of Nigeria’s oil, will invest $10 billion in the near future to develop another deep offshore hub and other prospects including natural gas. ExxonMobil will raise Nigeria’s about $10 billion investments in Nigeria of which $3 billion would be invested in gas flaring
[23]The 500 million-dollar West African Gas Pipeline (WAGP), the flagship project of the sub-regional body the ECOWAS. West African Gas Pipeline inaugurated, Posted on: 28-Apr-2007
[25]However, 70 % of Angola’s 12 million people live in poverty in one of Africa’s wealthiest countries.
[26] In 2004, China offered Angola $2 billion ‘soft’ loan without political strings attached. The money was earmarked for reconstruction in railways, electricity and administration. Judith van de Looy (2006) Africa and China: A Strategic Partnership? ASC Working Paper 67/2006.
[27]A joint venture with Angola’s national oil company (Sonangol) and Chinese Sinopec (ownes 75% of the consortium) of a $3 billion refinery investmen at Lobito
[28] Simon Robinson, "Black Gold," Time Europe, 28 October 2002,9263,901021028,00.html
[29] ExxonMobile, ChevronTexaco and Royal Dutch/Shell have expressed interest in bidding for exploration licenses that would pour millions of dollars into the islands.
[30] Fradique de Menezes was elected president in 2001. A small army group made a bloodless coup during a state visit to Nigeria. After the coup, São Tomé problems exist. São Tomé gets a lot of money but has not the political and financial institutions to manage that. The risk still is that a lot of money could disappear into private pockets.
[31] The list of problems includes e.g.: massive corruption and human rights abuses perpetrated, environments wrecked and coups and militarization common.
[32]ExxonMobil, Marathon and others invested $3 billion oil and natural gas extraction in the Atlantic
[34]The signature bonuses have claimed to be hundreds of millions in countries like Angola and Nigeria. Angola and Nigeria.
[35] Catholic Relief Services (CRS) says that without fundamental changes by international actors in Equatorial Guinea "the current mix of oil dependence, neglect of agriculture, corruption, poor administration and authoritarian rule are the recipe for a bleak future."
[36]China National Petroleum is the largest shareholder and controls the Sudanese energy sector. China covered the cost of most of the $15 billion 932-mile pipeline to Port Sudan where it is building a tanker terminal. Oil exports to China accounted for 64% of Sudan’s oil exports. Japan’s share of export is 14%. Sudan has an Asia orientation in its economy. About 10,000 Chinese workers employ in Sudan.Africa and China: A Strategic Partnership? Judith van de Looy, ASC Working Paper 67/2006
[37]Russia owns 27.2% of the total, 1,680 trillion cubic feet of the world total 6,183. Source of gas deposits: “Worldwide Look at Reserves and Production,” Oil & Gas Journal, Vol. 104, No. 47 (December 18, 2006), pp. 22-23.
[38] BP Statistical Review of World Energy 2006 (London, UK, June 2006), p. 22.
[44]China was the largest producer with 23.1%, and Russia second with 11.7%.
[46]Chile generates nearly 40% of all global mined copper annually has reached its peak production and copper prices to continue to rise.The large global copper mines have not only reached their threshold for expansion but will be exhausted in the next five to ten years.
[47]In his book Hot Commodities, Jim Rogers talks extensively about lead and the major production shortfalls the world will be faced with now and into the future.
[48] In end of the 90s, when the privatization was started, Gécamines was among five major copper and cobalt producers in the world, yielding a turnover of about $1 billion and providing jobs to 33.000 workers. Because of bad management and undue politics, Gécamines was run into the de facto bankrupt in 2003 and unable to pay regular salaries to 12.400 workers. The capital Kinshasa’s politicians approved several large contracts with big, foreign multinationals, leaving only a small share for Gécamines.
[52]New mines opening in Africa are in the South Africa, Namibia, Botswana, Tanzania, and Gabon producing gold, diamonds, niobium products, PGE’s, chrome and base metals. Major discoveries include diamondiferous kimberlites in Mauritania, and still in the diamond scene, the potential marine deposits in offshore southern Namibia.
[54]A new mining code introduced in mid-1995 offers a range of guarantees and tax incentives to new investors, who may now own up to 85% of any venture in Guinea.
[55]Gold is a strategic precious metal, widely used is technical devices, e.g. computer.
[56] Ashanti has about 195 million tonnes of proven and probable gold reserves ready to be exploited. Ashanti is listed on the London and New York stock exchanges.
[57] This includes a competitive policy and regulatory framework, security of tenure and the provision of national geo-scientific data.
[59] ECONOMIC OBSERVER, 35, World export and status of LDCs by Bijan Lal Dev.
[60] Despite the global growth, 852 million people, mostly of LDCs, suffer from hunger and malnutrition, 1.1 billion do not have access to clear drinking water, and every hour 1,200 children die from preventable diseases. The poorest 40 % of the world population, who live on less than 2 dollar a day, account for 5 % of global income. The richest 10 %, that is 620 million, account for 50 % of global income. ECONOMIC OBSERVER, 35, World export and status of LDCs by Bijan Lal Dev.
[61] This figure contains also mining. The World Trade Report 2006.
[62] Millennium Development Goals.
[63] Source: UNSd, Comtrade data base and WTO
[64] Millennium Development Goals.
[65]Africa’s production stagnated and were lost in countries like Lesotho, South Africa, Swaziland, Nigeria, Ghana, Mauritius, Zambia, Madagascar, Tanzania, Malawi, Namibia and Kenya. Loss of textile market costs African jobs by Bloomberg, Published 22 Aug 06
[66] Mills Soko, a researcher at the South African Institute of International Affairs in Johannesburg.

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