The prospects for African mining are better than they have been for 30 years. Political liberalisation, economic reform and World Bank backing have all been instrumental in attracting the attention of small and large mining houses alike. Companies are spending more than $400m a year on exploration alone, giving Africa around 12% of the world exploration market. However, corruption, bureaucracy, legal difficulties, labour problems and inadequate communications can still pose serious threats to investors. Tara O'Connor and Roger Dunn, senior Africa analysts, pick out the Dark Continent's current and future hotspots.
Angola. Government officials, UNITA commanders and South African ex-mercenaries compete with bandit gangs and freelance gold miners for control of key diamond-producing areas in Lunda Norte and Lunda Sul provinces. Foreign mining companies are frustrated at being unable to move back into the diamond region: some operations have begun, but they require heavy security, because companies are unable to transport goods and personnel safely by road. If no attempt is made to formalise a share-out and impose security in the region, the provinces will remain a potential flashpoint.
Eritrea. Mineral resources have significant potential: there are 15 gold mines near the capital Asmara alone, and two potential gold regions in the western lowlands at Tokombia and Barentu. The security environment and labour situation are both favourable.
Ethiopia. Exploration opportunities are attractive: several Western companies have expressed interest in the Adola gold belt. The government is pro-foreign investment (14 of its senior figures have recently completed Open University MBAs), though regional problems need careful assessment.
The Franc Zone (Benin, Burkina, Cote d'Ivoire, Mali, Niger, Senegal, Togo, Cameroon, CAR, Chad, Congo, Equatorial Guinea, Gabon). France's reduced interest in the Zone has opened up the mining sector for development. Transport and communications infrastructure are comparatively good. Increasing influence from IMF and World Bank, especially in persuading governments to adopt new mining and investment codes, ensures that investors' voices are heard at senior government level. However, mining companies continue to play the role of pioneer investors, with all the attendant problems.
Ghana. Highly successful Ashanti privatisation could become model for other African governments. Prospects for the mining industry remain the most favourable in the West African region. At current exploration levels, production is expected to double by 2000. Illegal miners pose an increasing security problem, burrowing into recently blasted or cleared areas or into the open pits that are in use.
Namibia. Corruption is less of a problem here than elsewhere in west Africa. The security and political climates are both favourable, with one of Africa's most pro-business investment codes in place. The Ministry of Mines and Energy is reportedly very efficient.
Sierra Leone. Prospects for peace are greater than at any time over the past six years following a peace agreement on 1 December 1996 between the government and RUF rebels. However, the country will remain in a state of semi-rebellion unless demobilisation is well-funded and thorough.
Uganda. Environment for foreign business is good, and mining is one of the most active industrial sectors. Economic reforms have led to annual growth rates of 5% and reduced inflation to single figures.
Zaire. The recent refugee crisis has thrown Zaire into the world spotlight. The ailing President Mobutu's death will probably precipitate a bitter power struggle in Kinshasa. A complete secession by the mineral-rich provinces of Shaba and Kasai is unlikely, but de facto autonomy will probably continue.
Zambia. Considerable movement has been made in restructuring the state mining corporation Zambia Consolidated Copper Mines (ZCCM). The restructuring is the first step in the corporation's proposed sell-off, which is viewed as essential to attracting significant new mining investment. However, redundancies associated with restructuring have undermined President Chiluba's traditional support base in the Copperbelt.
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