Africa could see a significant increase in investment in the mining and energy sector with the implementation of the Pan-African Resource Reporting Code 2023 (PARC 2023).
The code targets to ensure evaluation reporting on mineral resources in the continent are conducted by skilled and qualified personnel to allow transparency in determining their commercial viability.
The establishment of the code follows the development of the Africa Mining Vision adopted by African states in 2009 which is expected to help the continent efficiently deal with mining sector challenges and benefit from tax revenues.
“The AMV Action Plan aims to improve geological and mineral information systems to underpin investment in exploration and mine development. At the heart of the AMV is the harmonization of strategies, policies, instruments and practices for the greater participation of African countries in regional and global value chains,” said Marit Kitaw, Interim Director, African Union African Minerals Development Center (AMDC) when he opened the East Africa Regional Africa Minerals and Energy Classification and Management System (AMREC) and Pan Africa Resource Reporting Code(PARC) workshop in Kampala, Uganda.
According to AMDC, the code further enhances the need for the continent to ensure there is sustainable exploitation and value addition of its minerals, a bulk of which is still exported in raw form and denying the continent billions in earnings.
A report by McKinsey suggests that African could create 3.8 million new jobs in the next 30 years through decarbonization-fueled growth.
However, achieving net-zero emissions by industries in the sector over the period will mean the continent would likely require $2 trillion of additional investments.
“With the current global drive of decarbonisation and having minerals at centre stage of these decarbonisation efforts, it is time that the value addition talk is met with trained and certified minds that are aware of how to derive maximum benefit and value of those minerals within the continent on African terms,” AMDC stated.
Additionally, PARC will help African states address environmental and social issues affecting mining communities, ensure Artisanal and Small-scale Mining (ASM) operations are standardized and clearly categorize mineral resources.
African governments have further been urged to ratify statutes of ADMC for its effective operation in the continent under AU.
“We therefore urge Uganda to be among the first 15 founding members of the AMDC by signing and ratifying the Statutes establishing the AMDC to accelerate its operation as a Specialized Agency of the African Union. This will provide the AMDC the mandate and the sustainability to implement activities towards the transformation of economies and lives through the judicious use of mineral resources,” added Kitaw.
