RCS is well is well represented this year at Indaba, with 3 delegates (Nick Garrett, Director and Head of Sustainibility, Ben Clair who focuses on investment advisory, and Hilaire Avril who looks at Standards Compliance).
We heard some interesting and fresh thinking at the traditional World Bank panel discussion that kicks off the 4-day conference.
The panelists started by observing that commodity prices might be threatened by the ongoing European economic crisis. They pointed out the potential impact for Africa's wealth, and the mining sector's contribution, which the Bank puts at 50% of African exports (77% if you include oil and gas).
Maria Pigato, an economist ath the Bank, however remarked that most African growth levels are back to their levels prior to the 2008 financial crisis. But she went on the observe that traditioinal economic metrics do not capture the depreciation of natural resources and assets. She showed how, despite income from extratcive industries, the national level of savings in most African countries are decreasing.
This is the opposite of what happened in developing Asian countries in the 1970s, a decade during which governments re invested savings in infratsructure, education and sustainable, forward-looking investments.
One way to achieve that in Africa, the panel explained, is to develop local procurement of the mining industry. Most suppliers are not African, despite a wealth of talents and resources available. One question the panel did nt address, is the role and necessity of building dialogue and capacity with local suppleir prospects, who sometimes struggle with procurement procedures, standards and format. We know, they often tell us...