Ad-hoc Expert Group Meeting on Mining Cluster Development in Africa

Welcome address

By Mr. Josue Dione, Director
Sustainable Development Division

Addis Ababa, Ethiopia
15-17 December 2003

Distinguished Experts,
Dear Participants and Colleagues,
Ladies and Gentlemen,

It is with pleasure that I, on behalf of the Executive Secretary of ECA, welcome you to Addis Ababa, Ethiopia and to ECA. I wish also to take this opportunity to thank you for accepting our invitation to attend this expert group meeting and share with us your knowledge and experience in mining cluster development.

The study on mining cluster development has been commissioned out of the realisation that despite their rich endowment in mineral resources, African states dependent on mineral production have not always performed well. In most cases, these countries have not been successful in utilising their rich resource base to engender economic growth and development. This is in contrast to countries like Canada and Australia, which succeed in using their mineral wealth as a platform to promote natural resources-led industrialisation and prosperity.

ECA believes that the poor performance of African countries in this area is not unavoidable and that, as in Canada and Australia, minerals represent potential wealth. However, we also believe that, as a premise for this potential to be realized, mineral wealth must be created, managed properly and invested in the creation of linkages with other sectors of the economy and in developing other multiplier effects. Central to achieving these objectives is the existence of capable institutions, sound macro-economic underpinnings, and good governance.

Understanding in detail the reasons for the poor performance of the mineral sector in Africa is at the core of the study. More important, however, is that in undertaking this study, we hope to advance and contribute knowledge on the fundamentals of mineral cluster development and identify opportunities for and constraints to such development. Ultimately, we hope to draw lessons, derive policy options and propose strategies for policy makers and other stakeholders that will contribute to maximizing impacts of mineral development in the region.

In the initial stage, we have targeted Mozambique and South Africa. Mining cluster activity in these two countries has been measured. This assessment captures the level of transactions between the mining sector and other sectors with respect to local procurement and outsourcing of goods and services, as well as the contribution of the mining cluster to the creation of physical, human, social and institutional capital.

The programme of work of ECA for the next three years contemplates the possibility of extending the study to other African countries with significant mineral resources, such as, Botswana, Ghana, Mali, Morocco, Namibia, Nigeria, Tanzania and Zambia.

Distinguished Experts,

Ladies and gentlemen,

We have vested on you the difficult responsibility of reviewing the draft study submitted to you with a view to validating its main findings and recommendations. We also depend on you to examine whether there would be enough value added in extending the study to other countries and, in the event that such recommendation is made, to suggest modalities for undertaking it.

We are very privileged to have as collaborators specialists of your caliber. Given your expertise and experience, I am sure that the task ahead will be performed with due diligence. I look forward to successful deliberations and I wish you a pleasant stay in Addis.

Thank you for your attention.