The Business Environment

A controversial mining code and newly delineated borders to the country’s provinces create cause for concern while updates from the banking sector offer some conciliation.

By Lindsay Davis

Just months after announcing its entry into the DRC, TSX-listed First Cobalt withdrew its exploration activities from the country, announcing that instead it would focus on its cobalt prospects in Canada. Citing a deteriorated investment climate, the company’s CEO, Trent Mell, elaborated on the company’s reason for the quick departure in a statement to Quartz: “With the signals we’re getting, why would we invest our scarce dollars in a country that may not respect our investment rights?”

Investment in Zimbabwe: Continuing to Look East

Why India and China continue to invest into Zimbabwe.

Anita Kruger

Credit: Flickr/401(K)

JOHANNESBURG, SOUTH AFRICA – The Zimbabwean economy has shown impressive GDP growth figures over the last three years, averaging at 7.1% between 2009 and 2012. For the period 2012 to 2017, growth is expected to average at 4.7% as the growth in mining production stabilizes. Such positive growth rates should serves as an incentive for foreign direct investment (FDI) flows into any country and in Zimbabwe FDI increased more than eightfold between 2008 and 2012, from $51.6 million to $450 million.

Mining Finance Africa: Great Expectations and Great Challenges

The risk of under- and overestimating difficulties in Africa.

Anita Kruger

JOHANNESBURG, SOUTH AFRICA – The African extractive sector is back in the global spotlight. With 12% of global oil reserves, 40% of the world’s gold and up to 90% of chromium and platinum group metals (as estimated by the United Nations Economic Commission for Africa), it is not hard to understand why. The continent’s vast wealth in mineral resources coupled with impressive growth figures averaging at 5% annually over the last two years has given rise to great expectations in foreign investment flows. However, each of Africa’s 50 plus economies face challenges, both unique and general, raising the questions about the permanency of its new title of being the world’s second fastest growing economy.

African Mining Indaba & Mozambique: Africa’s Next Mining Hub?

Flickr: Bochhum1805

Maher Ali

MAPUTO, Mozambique—In the race between the world’s fastest-growing economies, one would be hard-pressed to find many of the traditional powerhouses from North American, European or Asian markets. In fact, the world’s poorest continent—Africa—dominates the list with twelve of the twenty economies with the highest projected compounded annual growth rate (CAGR) between now and 2017, according to a study completed by the Business Insider. Not surprisingly, many of these countries also have disparagingly low GDPs and standards of living, a fact that makes such stellar growth rates significantly easier to achieve.

African Exploration: Accessing Finance in Challenging Markets

Andrea Stucchi

DAR ES SALAAM, TANZANIA – As many of our readers will be all too conscious of, access to capital for junior mining companies has recently been severely impeded. While those with advanced-stage developments continue to attract equity to fund the development of quality projects, early-stage explorers are facing fewer options, particularly for greenfield prospects.