Mining in Africa | Deloitte Australia


Mining in Africa

How inclusive solutions can mitigate risk

The mining industry faces considerable challenges, including a combination of burgeoning commodity demand, finite existing supply and rapidly rising commodity prices. Africa offers an area full of potential, but also poses substantial risk to mining companies, both below and above the ground. The above-the-ground risks — which include high levels of political instability and corruption, opaque regulations and poor enforcement capacity — are especially vexing and can be quite costly. To mitigate above-the-ground risks and effectively compete with sovereign-backed firms, mining companies looking to do business in Africa should take an inclusive approach to development that addresses the needs of not only the companies themselves, but also the relevant governments and communities in which they operate.

In this article, the authors explore how mining companies can identify, develop and launch inclusive solutions that benefit all stakeholders and help reduce the above-the-ground risks inherent in developing markets such as Africa.

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