Jinapor urges African countries to tie foreign investment to value addition

The Minister for Lands and Natural Resources, Samuel A Jinapor, has called on African countries to make investment opportunities more attractive for investors.
He emphasized the importance of value addition to the growth of the mineral infrastructure and urged a departure from the traditional “dig and ship” approach.
Speaking at a Ministerial Symposium panel discussion during the ongoing “African Mining Indaba” conference in Cape Town, South Africa, Mr Jinapor outlined two crucial pillars for achieving this paradigm shift.
Firstly, he stressed the need for countries to insist on value addition.
Secondly, he highlighted the importance of creating an investor-friendly environment, ensuring that states provide the necessary infrastructure and systems, including cadastre, for investors to operate efficiently and maximize benefits equitably.
Minister Jinapor underscored, “You cannot achieve value addition or participate at the highest end of the value chain if the government doesn’t establish a proper, investor-friendly environment. It’s crucial, and governments must prioritize this.”
He addressed the essential elements required for private entities to be effectively attracted, including a solid and consistent rail system, reliable infrastructure, and power systems.
Using Ghana as an example, he emphasized the need for a policy framework where both the state and investors play their roles.
In the context of bauxite, Mr Jinapor highlighted Ghana’s efforts to build an integrated aluminum industry, supervised by President Akufo-Addo, with a policy framework that aims to exploit and manage resources effectively.
He emphasized the importance of striking a balance between value addition and indigenous participation, advocating for mutually satisfactory arrangements for all parties involved.
While acknowledging the challenges some African countries face with changing government policies, Mr Jinapor stressed the need for sustainable policies in the continent’s best interest.
He urged synchronization of policy frameworks across Africa to universally promote value addition.
Referring to the African Mining Vision as a guiding principle, Mr Jinapor cited the collaboration between Ghana and Cote d’Ivoire in structuring a common market pricing on cocoa as a positive example of African collaboration for growth.
He reiterated the vision of a shift in mining sector investment in Africa from the “rich Africa with poor Africans” model to one resulting in “rich Africans from rich Africa.”