AMN - Greater flow of African investment is likely - comment by Yolanda Torrisi

The new Trump administration in the USA is likely to lead to further Asian investment in Africa and the Middle East, according to discussions that took place during the 2017 Mining Indaba in Cape Town.

A panel of mining experts at the Indaba said Asian companies were looking to increase investments in resource and commodity driven economies on the continent.

They said that China had been the dominant investor in Africa’s mining sector over the last few years, particularly during the downturn in commodity prices. Africa has enough mineral resources to meet the needs of the resource hungry economies of China and the rest of Asia.

Experts said that with more US focus on domestic production and internal economic growth, global political alliances would be different than in the past.

Intrasia Capital CEO Graeme Robertson said that due to America’s internal focus there was likely to be a restructuring of global political alliances. “China, Indonesia, Japan and Korea will have a far more significant influence in world affairs, which will also be in mining and investment. Asia 25 years ago was equivalent to what Africa is today, so the Asian money is looking at new directions and you see the influence of that into Africa.

He said the investment coming into Africa was mostly Chinese, but there was also some from Japan and South Korea while Indonesian money was starting to flow in. He stated that many parts of Africa remained desirable for Asian companies wanting to invest in mining.

“East Africa is a key area because it faces the Indian Ocean for better logistics and English is a general language while not many Asian people speak French. However, from a Singapore perspective there is engagement with Senegal and Ivory Coast.”

Noble Resources’ Global Head of Copper Sariel Polatinsky said there were opportunities in Africa and the Middle East. “We see more opportunity in other less mature regions, for instance in the Middle East, South East Asia, Africa and China but we need to see what the plan for China is moving forward.”

Yolanda Torrisi is Chairperson of The African Mining Network and comments on African mining issues and the growing global interest in the African continent. Contact:yolanda@yolandatorrisi.com