Jordi Tío Rotllan - 13 December 2010

Centre for the Development of Enterprise

Mining industry in ACP countries

General presentation of CDE Mining industry in ACP countries

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Topics of this presentation

CDE - Centre for the Development of Enterprise

An Institution of the ACP Group and the EU – under the Cotonou Agreement

Supports the sustainable development of the ACP private sector

Financed by the European Development Fund (EDF)

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CDE in brief

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Eligible Beneficiaries

Private Sector enterprises

Enterprises in the creation, expansion, diversification or restructuring phase in the ACP countries

Enterprises must have promising prospects for financial and economic viability as well as a positive development impact

Private Sector Intermediary Organizations Professional associations, federations, technical centres, investment

promotion bodies, development finance institutions, etc. Service Providers

ACP consultants and consulting firms

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through Programmes

CDE intervenes…

Increasingly, CDE interventions are being undertaken within the framework of Programmes (2/3 of the budget)

Cluster approach – grouped assistance

In response to individual requests and prospective investors

through ad-hoc Assistance

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PROGRAMMES

Tourism

Sustainable Forestry

Promotion of Aquaculture

Maintenance in the Infrastructure Sector (Roads & Water)

Competitiveness Enhancement

Processing of cereals, fruit and vegetables

Mining Industry

Energy

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Mining Industry in ACP

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Institutional context of the programmeFiguresExpected resultsSector contextChallengesKey areasResults Conclusion

Support to the mining sector from CDE in ACP countries in the last 12 years

Scheme of the presentation

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The ACP-EU Partnership Agreement, signed in Cotonou on 23 June 2000, recognizes the importance of the ACP mining industry in its Article 68

Following the Mines 2000 forum held in Lusaka, Zambia the SADC-MCU and the CDE designed and implemented an integrated 5 year programme of assistance for the SADC mining sector starting in 2001

Institutional context of the programme

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•Budget €4 million• 55% CDE• 30% PROMOTERS• 15% COFINANCING AGENCIES

Mines 2000 - Figures

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European FACT fund

SYSMIN

• Improve local expertise and skills• Upgrade product quality• Poverty alleviation through creation of jobs• Improve environmental practices• Improve health and safety regulations• Better access to European markets and information

Mines 2000 - Expected results

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The Southern African mining industry contributes to around10% of GDP in the region:

It involves 5% of total employmentContributes to 60% of foreign exchange earningsThe region is a leading contributor to world output of:

Sector context

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•Low-skilled personnel

•Lack of appropriate technology

•Lack of market opportunity awareness

•Delays in issuance or refusal of operating licence

•Poor enterprise management by senior personnel

•Poor business decision making as a result of insufficient business knowledge

Mines 2000 - Challenges

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1. Direct technical assistance and capacity building for enterprises/individuals

2. Capacity building for Intermediary organizations3. Creation of information networks and market awareness4. Environmental and social awareness5. Facilitating financing for enterprises

Mines 2000 – Key areas of support

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90 FIRMS

SUPPORTED

75 (83%) STILL IN OPERATION TODAY (2006)

1. Direct technical assistance:

60 enterprises received an average of 2 direct technical assistance interventions from 2001 to 2005.

Including improvement of technical, financial and marketing management

70% of the total budget

Mines 2000 - Results

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60 firms which received technical assistance

Created/saved 2500 jobsTotal turnover of €120 million40% of which from 15 major operators

2. Capacity building for Intermediary organizationsTraining, seminars, workshops: Appropriate technology in management in Mining, Namibia

2001. Business development workshop for gemstone miners,

Zambia 2001 Gemmology training centre, Mozambique 2001 Dimension stone training workshop, Italy 2002 Business development workshop, Malawi 2003 Environmental aspects of gemmology, Mozambique 2004 Dimension stone workshop for ACP architects, Italy 2002 Seminar on marketing of industrial materials, Namibia 2005

Mines 2000 - Results

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2. Capacity building for Intermediary organizationsPublication of technical guides:

• Dimension Stone quarrying in ACP countries• Code of environmental practice for mining projects• Technical guide on coloured gemstones

Mines 2000 - Results

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3. Creation of information networks and market awareness• 35 firms participated in international fairs in Europe:

Carrara Marmotec Fair, Italy 2001 & 2004 Women in mining Vicenza, Italy 2002 Vicenza fair, Italy 2004 Verona fair, Italy 2004 Tektonica International fair, Portugal 2004

• Creation of SADC Mining Info Portal (out of service today)• Creation of (Assoc for dimension stone

operators in Africa) and its website www.afristone.com

Mines 2000Results

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4. Environmental and social awareness

Dissemination of best practices• Organization of 2 workshops• Publication of a technical guide for SME• On-the-job training

Mines 2000 - Results

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5. Facilitating financing for enterprisesCDE assisted 5 promoters in preparing bankable business plans to secure loans• Reserve assessment• Search for appropriate technology• Market study• Financial engineering

Mines 2000 - Results

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It has been proved that CDE interventions has consolidated the development of SME, Intermediary organizations and services providers of the mining sector through workshops, seminars, guides, direct assistance, etc.

Economic impact: more than 2500 jobs and more than €120 million turnover (SADC – mining programme).

Conclusion

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Support to the mining sector from CDE in the last 12 years

Zones of intervention

Source : CDE database

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Support to the mining sector from CDE in the last 12 years

Types of intervention

Source : CDE database

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Source: Dimension stone quarrying in ACP Countries, CDE 2003

Dimension Stone CDE projects in ACP African countries

CONTACTSRegional Offices

Headquarters - Brussels

info@cde.int

CDE website: www.cde.int

West Africa : Dakar (Senegal) Mr Gaston Baganzicaha gaston.baganzicaha@cde.int

Central Africa : Opening in 2011

Eastern Africa : Nairobi (Kenya) Mr Farai Majuru farai.majuru@cde.int

Southern Africa : Gaborone (Botswana) Mr Sid Boubekeur sid.boubekeur@cde.int

Caribbean : Santo Domingo (Dominican Republic) Mrs Marie Louise Norton mln@cde.int

Pacific: Opening in 2011

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Thank you for your attention

Jordi Tió Rotllan

info@cde.int