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We need to add value to our resources - Rob Davies
As day two of the mining indaba is coming to a close. CNBC Africa’s Fifi Peters spoke with South African minister of Trade and Industry, Rob Davies about the necessity to add value to the mining sector in order to keep up with the demands of the 4th industrial revolution.
Tue, 05 Feb 2019 15:06:59 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Historical legacy of colonialism shaping the current focus on industrialization and value addition in Africa.
- Impact of global trade tensions and the Fourth Industrial Revolution on African economies.
- Government programs supporting entrepreneurship among black industrialists and junior miners.
As day two of the mining indaba comes to a close, South African Minister of Trade and Industry, Rob Davies, emphasized the importance of adding value to the mining sector in order to keep pace with the demands of the Fourth Industrial Revolution. In a recent CNBC Africa interview, Minister Davies highlighted the need for African nations to shift towards beneficiation to maximize the value of their natural resources.
Minister Davies acknowledged the current initiatives supporting value addition in the manufacturing sector, such as fuel cell equipment production and catalytic converter manufacturing using platinum group metals. However, he expressed concerns that the continent has yet to fully tap into the benefits of beneficiation. He cited an example where processing mineral sands to extract titanium could yield a tenfold increase in value, underscoring the potential economic gains from value addition.
The key theme of the interview centered around the imperative for African countries to move up the value chain and engage in more sophisticated industrial activities to drive economic growth. Minister Davies stressed that enhancing technological capabilities, fostering a competitive environment for value-added activities, and optimizing pricing policies are vital steps towards achieving successful beneficiation.
Key Points:
1. Historical Context and Future Ambitions: Minister Davies highlighted the historical legacy of colonialism, which relegated African nations to providers of raw materials without encouraging manufacturing. He emphasized the need to overcome this legacy by pursuing value addition and industrialization as key ambitions for the African continent.
2. Trade Wars and Economic Realities: Minister Davies addressed the impact of global trade tensions and rising protectionism on African exports, particularly in steel and aluminum sectors. While he noted successful lobbying efforts to mitigate US tariffs on certain products, he underscored the need for a nuanced approach to navigate the complexities of the Fourth Industrial Revolution and its implications for international trade.
3. Black Industrialist Program and Support for Junior Miners: Minister Davies provided insights into the Black Industrialist program, highlighting its role in fostering entrepreneurship and economic empowerment among black South Africans. He emphasized the importance of creating a supportive business environment and meeting the needs of aspiring industrialists. Additionally, Minister Davies touched on the government's support for junior miners through programs led by the Industrial Development Corporation (IDC) and the Department of Mineral Resources (DMR).
In conclusion, Minister Davies's remarks underscored the critical importance of value addition in unlocking Africa's economic potential and fostering sustainable development. As African nations navigate a rapidly evolving global landscape marked by technological advancements and trade dynamics, the push for beneficiation emerges as a key strategy to enhance competitiveness and drive inclusive growth across the continent.
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