AMN - Stronger mining laws wanted for East Africa - comment by Yolanda Torrisi

East African countries are being urged to strengthen mining laws so that resources will benefit all people. East Africa Development Bank (EADB) director-general Vivienne Yeda says mining exploration and development has given governments and communities hope that mining will create wealth in their communities, attract foreign investment, create new infrastructure and improve living conditions.

Vivienne Yeda says it is critical that host countries gain tangible benefits from the exploitation of their natural resources.

Vivienne Yeda was quoted in media reports saying: “The benefits should accrue to the local communities in the form of appropriate royalties, taxes, dividends, business opportunities, professional jobs and employment for skilled labour.

“There should be a clear benefit to the country, commensurate with the amount of resources derived for the country. In order to achieve this, taxes and other fiscal rates, environmental and social management in Africa should be comparable to those prevailing in advanced economies.”

Meanwhile, Kenyan Attorney-General Githu Muigai says that to ensure resource wealth is delivered to East African countries, long-term and sustainable economic development needs to be implemented to prevent resource dependence and encourage economic diversification.

Githu Muigai says this will encourage job creation despite the sector’s capital-intensive nature. This will be created by minimising environmental degradation and allowing for the benefits to accrue even after resources have been exhausted.

“Governments in the general East African region are increasingly putting in place legal and regulatory mechanisms to support the investments in the extractives sector,” he said at a conference in Nairobi recently.

“This includes reviewing of outdated legislation and the enactment of new laws as well as other mechanisms to improve the investment climate and enhance the ease of doing business.”

Mining and exploration activities have led to a rise in litigation in Kenya and more work needs to be done on resolving disputes.

- 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