Outlook for Rwanda’s mining sector

Rwanda's mining sector is poised for significant growth, with the country's export revenue expected to soar from $200 million in 2016 to over $300 million in 2017. In an exclusive interview with CNBC Africa, Hon. Francis Gatare, CEO of Rwanda Mines, Petroleum and Gas Board, outlined the ambitious target of reaching $1.5 billion in export earnings by 2024. Gatare emphasized that the key to achieving this goal lies in leveraging increased investments in technology and exploration, as well as enhancing the productivity of mining operations across the country. One of the main strategies to boost export earnings is by enhancing the recovery rates of mining operations, which currently stand at under 40%. By improving these rates, Rwanda aims to double the volume and value of its exports. This will be achieved through mobilizing capital investments to enhance productivity and upgrading the technology used in mining operations. Additionally, the public sector is taking a proactive role in spearheading additional exploration activities. By providing operators with new geological information, Rwanda aims to optimize mining operations and uncover new mineral deposits. These efforts are expected to increase the diversity of minerals available for export, further boosting the country's export earnings. Gatare addressed the issue of artisanal mining in Rwanda, acknowledging that the sector is currently dominated by small and informal miners. To address this challenge, the government is working to consolidate small mining companies into larger collective operations through cooperatives and joint ventures. By providing financial support, equipment, and skills training, Rwanda aims to enhance the productivity and scale of mining operations in the country. One of the key areas of focus for the mining sector is to attract foreign direct investment and increase the processing and smelting of raw commodities within the country. This move is crucial for Rwanda to capitalize on its position as a significant global supplier of tantalum, contributing approximately 35% of the market share. By expanding processing capabilities, Rwanda can add further value to its mineral exports and attract greater investment into the sector. The interview also touched upon the issue of foreign exchange (FX) volatility and its potential impact on the mining sector. Gatare highlighted that while the sector is a key contributor to Rwanda's foreign exchange earnings, the country's macroeconomic stability has helped mitigate FX risks. With a strong focus on increasing export earnings and reducing reliance on imports, Rwanda is well-positioned to weather potential FX fluctuations and attract foreign investments. In terms of diversification, Rwanda is actively exploring new mineral deposits beyond its traditional focus on tantalum, tin, and tungsten. Through comprehensive geological surveys and targeted exploration efforts, the country aims to identify untapped mineral resources and attract investments into new sectors such as gold mining. By de-risking investment through advanced geological mapping, Rwanda is paving the way for sustainable growth and development in its mining sector. Overall, Rwanda's mining sector is undergoing a transformative period, with bold targets and strategic initiatives driving its growth trajectory. By harnessing technology, increasing exploration efforts, and enhancing productivity, Rwanda is poised to unlock its mining sector's full potential and position itself as a leading player in the global mining landscape.