
<p><em>By Shirley Webber, Coverage Head Natural Resources at Absa Corporate and Investment Banking (CIB).</em><br>Global investor interest in Africa’s mining sector remains strong despite various challenges facing the sector. The African continent has vast resources with sustainable future growth in the&nbsp;exploration and development of commodities, and therefore the growing demand for these strategic resources by foreign investors and commodity users worldwide in the long term. </p>



<p>However,
to harness this interest, stable political environments, compliance with
legislation, stable labour relations and regulatory certainty will be key to ensure
the continent remains an attractive destination for mining investment. </p>



<p>The
regulatory environment must be certain and consistent from one year to the next
because mining is a long-term business, and from a bank’s view, it is a three
to five-year investment. Therefore, both banks and shareholders need
consistency, be it regulations or aspects like royalty taxes for example.</p>



<p>The
regulatory environment across some African countries is improving for the
mining and metals sector as governments realise the importance of providing
certainty to attract new investment. As a result, some investors have been
considering green-fields projects, especially in West and East Africa. There’s
a renewed focus on battery minerals as well and this is evident in the drilling
activity on the African continent over the last two years. Increased capital
expenditure is envisaged in gold, copper, lithium, mineral sands, cobalt and
graphite. </p>



<p>There
is a more collaborative approach between governments and investors in order to
attract sustainable investment in the regions. The key to unlocking investments
into Africa is for industry stakeholders to continue to collaborate responsibly
to promote investment in mining and ultimately economic growth in the countries
they operate.</p>



<p>Equally
important will be the availability of reliable cost-effective power supply. For
example, there have been power cuts in South Africa, and this has affected
mining companies. Mining companies prefer certainty about the available power
so that they can manage their cost structures and plan production accordingly.
In the rest of Africa similar energy crisis situations are evident, therefor
the need for more renewable energy sources, thereby curbing power interruptions
and costs in the long-run.</p>



<p>Because
mining is a capital-intensive business, factors such as rising production
costs, infrastructure challenges, electricity supply as mentioned and rising labour
costs continue to be of major concern to mining companies. &nbsp;And these are issues which need to be dealt
with responsibly. </p>



<p>As
costs rise and margins come under pressure, diversification will be important
for the mining and metals industry to ensure that companies remain competitive
with volatile economic cycles and commodity prices. &nbsp;</p>



<p>Diversification
is a key differentiator as it is not only about &nbsp;various commodities but also geographical
diversification too. Some of the mining companies are expanding into both
Africa and globally. On the other hand, consolidation remains a key theme that
includes large players forming one entity for efficiencies or even selling of
parts of the value chain. </p>



<p>The long term sustainability is dependent
on sourcing, developing and mining high grade reserves. Change
in the reserves’ estimates or development prospects pose a risk to mining
companies. It will however be important to achieve efficiencies particularly as
the cost of extraction continues to rise due to the geology of some minerals
which is forcing mining companies to access more difficult reserves underground.
It is important to focus on enhancing operational efficiency to perhaps look at
inclusion of automation and new technologies where applicable.</p>



<p>Equally
of concern to mining companies is the volatility in commodity and foreign
currency markets which will need appropriate risk management strategies in
order to ensure financial institutional funding of investments in mining. Innovative hedging solutions to clients who have
exposures to interest rate fluctuation, foreign exchange fluctuation and
commodity variability are necessities for operational project success. </p>



<p>Banks
such as Absa, which is one of the 130 banks from 49 countries who are
signatories to the United Nations Principles for Responsible Banking, now have
an increasing and important role to play by funding not only commercially
viable projects but also ensuring that they complied with sustainability
principles which align business strategy to society’s goals. </p>



<p>The
key role of a bank like Absa now includes making sure that where we provide
funding, the economy and communities benefit. Going forward when considering
funding of certain commercially viable projects which include natural resources
and extraction, lenders will place additional focus on the positive impact of
funding and whether it aligns with a country’s developmental goals, the
environment and its people. </p>



<p>Non-compliance
with environmental laws can lead to production interruptions, reputational
damage, and substantial fines/clean-up costs. Mining operations are subject to
various stringent and complex environmental, health and safety laws and
regulations. In this respect, capital providers can guide their clients and
stakeholders in their requirements for funding by applying the Equator
Principles which include applicable IFC Performance Standards on Environmental
and Social Sustainability Guidelines for various sectors and for funding
natural resources and extraction transactions.</p>


#MiningIndaba2020: Global investor interest in mining in Africa remains high, but more can be done…

<div style="max-width: 700px;"></div>
<p><script src="https://players.brightcove.net/1571595826001/default_default/index.min.js"></script></p>
<p>Former Reserve Bank Deputy Governor, Daniel Mminele is the first black CEO of South Africa&#8217;s third largest bank, Absa. Mminele replaces the interim CEO, Rene van Wyk from the 15th January 2020 but what does this mean for Absa and the banking sector? Kokkie Kooyman, Portfolio Manager at Denker Capital joins CNBC Africa for more.</p>


Appointment of former Reserve Bank Deputy Governor as new ABSA CEO analysed

What new ABSA CEO needs to do to prosper


<p>Speculation has been rife for months that South African Reserve Bank&#8217;s (SARB&#8217;s) former deputy governor Daniel Mminele would be Absa&#8217;s next boss after <a href="https://www.cnbcafrica.com/news/financial/2019/01/29/after-10-years-at-the-held-maria-ramos-to-step-down-from-absa/">Maria Ramos resigned last year</a>, today it was confirmed, he will take over on the 15th January.</p>



<p>However Viv Govender, a Senior Analyst&nbsp;at Rand Swiss reckons <a href="https://www.cnbcafrica.com/videos/2019/08/14/mminele-expected-to-take-the-reins-at-absa-on-15th-january-2020-source/">Mminele might not be the right fit</a>. He believes someone from the IT or technology field would have been a better fit to deal with the structural changes in the banking industry that have seen new players, such as TymeBank and Bank Zero entering the market. </p>



<pre class="wp-block-preformatted">Mminele has extensive banking experience. In a statement from Absa it said  Mminele  recently completed his "second five-year term as Deputy Governor of SARB, where his responsibilities included Financial Markets, International Economic Relations and Policy, and Human Capital and Operations. Among others, he was a member of the Monetary Policy and Financial Stability Committee. Prior to joining the SARB in September 1999, he worked for African Merchant Bank and Commerzbank in South Africa, and WestLB in the UK and Germany for 12 years, commencing in 1987. Daniel previously earned a German banking qualification and obtained various associate certificates from the Institute of Bankers in the UK".</pre>



<p>   </p>



<p>  </p>


South African Reserve Bank’s former deputy governor,  Daniel Mminele to head Absa, why this analyst believes he might not be a good fit

<div style="max-width: 700px;"><video-js data-account="1571595826001" data-player="default" data-embed="default" controls="" data-video-id="6100720257001" data-playlist-id="" data-application-id="" class="vjs-fluid"></video-js></div>
<p><script src="https://players.brightcove.net/1571595826001/default_default/index.min.js"></script></p>
<p>South African President, Cyril Ramaphosa joined us for an exclusive 60 minute interview earlier today to discuss business, economics and the direction of Africa’s most industrialised nation. Joining CNBC Africa to unpack this interview is Jacques Nel, Economist for Southern and East Africa at NKC African Economies and Peter Worthington, Economist at Absa.</p>


President Cyril Ramaphosa: What the future holds for SA & Africa

<div style="max-width: 700px;"><video-js data-account="1571595826001" data-player="default" data-embed="default" controls="" data-video-id="6099772483001" data-playlist-id="" data-application-id="" class="vjs-fluid"></video-js></div>
<p><script src="https://players.brightcove.net/1571595826001/default_default/index.min.js"></script></p>
<p>The Absa Purchasing Managers Index lifted from a revised 45.1 points in September to 48.1 points in October. This sets the tone for how manufacturers in the sector view the month ahead. Joining CNBC Africa to discuss this further and whether Moody&#8217;s will downgrade South Africa is Absa Senior Economist, Miyelani Malueke.</p>


Will Moody’s throw SA over the precipice?

<div style="max-width: 700px;"><video-js data-account="1571595826001" data-player="default" data-embed="default" controls="" data-video-id="6098800657001" data-playlist-id="" data-application-id="" class="vjs-fluid"></video-js></div>
<p><script src="https://players.brightcove.net/1571595826001/default_default/index.min.js"></script></p>
<p>RCS a subsidiary of BNP Paribas has acquired the Absa funded portion of the Edcon Store Card debtor’s book. RCS has also secured the right to provide consumer finance products to Edcon customers. Grant Pattison, CEO of Edcon Group and Regan Adams, CEO of RCS Group join CNBC Africa for more.</p>


RCS buys Absa portion of Edcon store card debtors’ book


<p><em>Press Release</em></p>



<p>Now in its third year, the Absa Africa Financial Markets Index evaluates financial market development in 20 countries across the African continent and the improvements show the progress being made within the financial markets.</p>



<p>Apart from the progress shown in the overall score, the biggest improvement was in ‘legality and enforceability of standard financial markets master agreements’, where the average score jumped to 55 from 47.</p>



<p>‘The steady improvement across African countries is partly a testament to the impact that our Index is having across the continent,’ says George Asante, Head of Global Markets for Absa Regional Operations. ‘The Index is putting the right level of peer pressure on policy makers across Africa and we are seeing a concerted effort to react to the findings. The Index is becoming a powerful barometer for policy makers and playing a role in building an Africa which is able to fund itself.’ An excellent example of this is Ethiopia, which announced plans to launch a stock exchange in 2020, a sure sign of the significant potential for improvement in the coming year.</p>



<p>We welcome these vital signs of improvement in several African countries,’ says David Marsh, chairman of OMFIF. ‘The launch of new products or regulatory improvements prove that the African continent is moving in the right direction, and our index is now a piece of important evidence for tracking progress in the region’.&nbsp;</p>



<p>For more visit &gt;&gt; https://www.absa.co.za/corporate-and-investment-banking/news-and-events/events/absa-africa-financial-markets-index1/ </p>


Here’s how Absa is planning to take you further into Africa than ever before

<div style="max-width: 700px;"><video-js data-account="1571595826001" data-player="default" data-embed="default" controls="" data-video-id="6096779528001" data-playlist-id="" data-application-id="" class="vjs-fluid"></video-js></div>
<p><script src="https://players.brightcove.net/1571595826001/default_default/index.min.js"></script></p>
<p>South Africa tops the ABSA financial markets index for 2019. This index highlights economies with the clearest growth prospects in Africa. This year Botswana, Kenya and Namibia joined the ranks that scored over 50 in its pillar 1 structure and Egypt holds the highest score in macroeconomic opportunity. George Asante, Head of Global Markets at Absa Regional Operations joins CNBC Africa for more.</p>


SA tops ABSA financial markets index for 2019 – This is how other African countries fared

<div style="max-width: 700px;"><video-js data-account="1571595826001" data-player="default" data-embed="default" controls="" data-video-id="6072230502001" data-playlist-id="" data-application-id="" class="vjs-fluid"></video-js></div>
<p><script src="https://players.brightcove.net/1571595826001/default_default/index.min.js"></script></p>
<p>Absa bank sited its retail unit in South Africa as one of the factors which saw the group increase its earnings for the first half of 2019 by 3 per cent. CNBC Africa reporter Kopano Gumbi spoke with Absa interim CEO, René van Wyk for more.</p>


Absa CEO: Why our retail business performed well

<div style="max-width: 700px;"><video-js data-account="1571595826001" data-player="default" data-embed="default" controls="" data-video-id="6068603196001" data-playlist-id="" data-application-id="" class="vjs-fluid"></video-js></div>
<p><script src="https://players.brightcove.net/1571595826001/default_default/index.min.js"></script></p>
<p>CNBC Africa is joined by Yasmin Masithela. She was appointed to Absa&#8217;s executive board a few months ago to become their Managing Executive of Transactional Banking. She&#8217;s warming us up to the important conversations that need to be had in this upcoming Women&#8217;s Month.</p>


Absa’s Yasmin Masithela reflects on the significance Women’s Month

<div style="max-width: 700px;"><video-js data-account="1571595826001" data-player="default" data-embed="default" controls="" data-video-id="6066785878001" data-playlist-id="" data-application-id="" class="vjs-fluid"></video-js></div>
<p><script src="https://players.brightcove.net/1571595826001/default_default/index.min.js"></script></p>
<p>Absa Purchasing Managers’ Index moved into expansion for the first time in seven months. Higher demand stimulated necessary growth in sales and business activity. Manufacturing activity rose to 52.1 in July from 46.2 in June. Senior Economist at Absa, Miyelani Maluleke, joins CNBC Africa for more.</p>


SA’s Absa PMI expands for the first time in 7 months

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6055554271001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Alternative stock exchange A2X is one of the country&#8217;s most popular exchanges after the JSE. Today it added Exchange Traded Funds to its platform with Absa signing on to be one of the first to offer three of its metal exchange traded funds. A2X CEO, Kevin Brady joins CNBC Africa for more.</p>


Absa lists metal ETFs on A2X


<p><em><a href="https://www.businesslive.co.za/bd/companies/financial-services/2019-02-21-absa-said-to-court-reserve-banks-daniel-mminele-as-ceo/">Speculation</a> has been rife since February that  Absa Group is considering South African Reserve Bank  deputy governor Daniel Mminele as its next CEO after Maria Ramos, left in March. Now that he has stepped down from SARB could this be the reason?</em>  </p>



<p><strong>SARB&#8217;s full statement </strong></p>



<p>The
South African Reserve Bank (SARB) wishes to announce that Deputy Governor
Daniel Mminele will be retiring from the service of the SARB when his second
five-year term as Deputy Governor expires on 30 June 2019. Mr Mminele has
advised President Cyril Ramaphosa and the Board of Directors of the SARB
(Board) that he has decided not to serve another term. </p>



<p>Deputy
Governor Mminele leaves the SARB after almost 20 years of service, having
joined the SARB on 6 September 1999. Before being appointed Deputy Governor in
2009, Mr Mminele served as an Executive Assistant to former Senior Deputy
Governor James Cross. Later he also served as General Manager and Head:
International Banking Department, Head: Financial Markets Department and
Executive General Manager: Markets. </p>



<p>His
most recent responsibilities as Deputy Governor include the Financial Markets
Department, International Economic Relations and Policy Department, Legal
Services Department and National Payment System Department, as well as
oversight of the Human Capital Cluster and Operations Cluster reporting to the
Chief Operating Officer (COO), Mogam Pillay. Mr Mminele is a member of the
Governors’ Executive Committee, Prudential Committee, Monetary Policy Committee
and Financial Stability Committee. He also chairs the Information Technology
Steering Committee, the Reserves Management Committee, the Board of Directors
of the Corporation for Public Deposits and the Financial Markets Liaison Group.
Mr Mminele currently serves as South Africa’s G20 and BRICS Central Bank
Deputy, and as Chairperson of the IMFC Deputies of the International Monetary
Fund. </p>



<p>The
SARB takes this opportunity to thank Mr Mminele for his dedicated service,
commitment and significant contribution to the work of the SARB and wishes him
well for the future. In a message to staff, Governor Kganyago said: “Deputy
Governor Mminele has left an indelible mark on this fine institution and his
contribution to the Bank has been invaluable and immeasurable.” </p>



<p>In
accordance with the policy of the SARB, Mr Mminele will serve a mandatory
six-month cooling-off period. </p>



<p>The
Board has been in communication with the President and the Minister of Finance
regarding the process to announce Mr Mminele’s successor, in accordance with
the SARB Act 90 of 1989, as amended. In the interim, Governor Kganyago will
take over the responsibility for the International Economic Relations and
Policy, and Legal Services departments, while Deputy Governor Naidoo will
assume responsibility for the Financial Markets and National Payment System
departments. The COO will report to the Governor, and the Executive responsible
for the Currency Cluster will report to Deputy Governor Naidoo.</p>


SARB Deputy Governor Daniel Mminele retires, is he headed to Absa?

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6045692720001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Khokhela Consulting, CEO, Laurence Grubb joins CNBC Africa to at South African Executive’s remuneration. This is in light of a large percentage of shareholders opposing the executive remuneration at both Absa and Old Mutual, with reports suggest that South Africa’s banking CEO’s are some of the highest paid executives in the country.</p>


How much are SA CEOs banking?


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) for May fell as business activity and new sales orders declined, the survey showed on Monday.</p>



<p>The index, which gauges manufacturing activity in Africa’s most industrialised economy, slipped to 45.4 in May from 47.2 in April, below the 50 mark that separates contraction from expansion.</p>



<p>Reporting by Alexander Winning, editing by Larry King</p>


South Africa’s Absa PMI drops in May, what you need to know

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6041496388001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>As Barclays Africa Group transitions into ABSA Group Limited, CNBC Africa&#8217;s Makeda Mahadeo caught up with the CEO of Barclays Bank Kenya Jeremy Awori, on their commitment to shared value, their position in a highly active east African banking sector and their approach to mobile banking.</p>


Barclays Kenya commits to Uhuru’s ‘Big Four’ agenda

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6036631354001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Statistics South Africa released its first quarter results revealing higher unemployment rate this year. The jobless rate has increased to 27.6 per cent; this is a 0.5 per cent higher than Q4 2018. The unemployment figure has come as no surprise following the sluggish growth of the economy. Joining CNBC Africa to unpack the Q1 unemployment results is Miyelani Maluleke, Macro Economist, Absa.</p>


Absa

#MiningIndaba2020: Global investor interest in mining in Africa remains high, but more can be done…

What new ABSA CEO needs to do to prosper

South African Reserve Bank’s former deputy governor, Daniel Mminele to head Absa, why this analyst believes he might not be a good fit

President Cyril Ramaphosa: What the future holds for SA & Africa

Will Moody’s throw SA over the precipice?

RCS buys Absa portion of Edcon store card debtors’ book

Here’s how Absa is planning to take you further into Africa than ever before

SA tops ABSA financial markets index for 2019 – This is how other African countries fared

Absa CEO: Why our retail business performed well

Absa’s Yasmin Masithela reflects on the significance Women’s Month

SA’s Absa PMI expands for the first time in 7 months

Absa lists metal ETFs on A2X

SARB Deputy Governor Daniel Mminele retires, is he headed to Absa?

How much are SA CEOs banking?

South Africa’s Absa PMI drops in May, what you need to know

Barclays Kenya commits to Uhuru’s ‘Big Four’ agenda

The cost of high unemployment to SA’s economy

News Tips

Advertise With Us

Absa

#MiningIndaba2020: Global investor interest in mining in Africa remains high, but more can be done…

What new ABSA CEO needs to do to prosper

South African Reserve Bank’s former deputy governor, Daniel Mminele to head Absa, why this analyst believes he might not be a good fit

President Cyril Ramaphosa: What the future holds for SA & Africa

Will Moody’s throw SA over the precipice?

RCS buys Absa portion of Edcon store card debtors’ book

Here’s how Absa is planning to take you further into Africa than ever before

SA tops ABSA financial markets index for 2019 – This is how other African countries fared

Absa CEO: Why our retail business performed well

Absa’s Yasmin Masithela reflects on the significance Women’s Month

SA’s Absa PMI expands for the first time in 7 months

Absa lists metal ETFs on A2X

SARB Deputy Governor Daniel Mminele retires, is he headed to Absa?

How much are SA CEOs banking?

South Africa’s Absa PMI drops in May, what you need to know

Barclays Kenya commits to Uhuru’s ‘Big Four’ agenda

The cost of high unemployment to SA’s economy

News Tips

Advertise With Us

Newsletters