A key current trend in the mining sector is ESG (environmental, social, and governance) factors.
In Africa, perhaps more than anywhere else, the “economic impact” dimension of this phenomenon is of the utmost importance at a time when governments are becoming increasingly demanding in terms of counterparties during contract negotiations.
To account for this, AfricaBusiness+, the exclusive newsletter of Jeune Afrique Media Group (publisher of The Africa Report), has partnered with EY for an exclusive ranking that measures, assesses, and compares the real local economic impact of mining companies on the continent.
This is done by combining three essential criteria:
- Tax contributions
- Direct employment created
- Voluntary social contributions
>>> Get the ranking on AfricaBusiness+ here: 30 Mining Impact Champions <<<
The analysis was based on the latest reports from the Extractive Industries Transparency Initiative (EITI) for African countries that are part of it, supplemented by information obtained in company reports for non-member states such as South Africa, Morocco, and Botswana.
$15bn injected
At the end of this study, it is the UK-South African company Anglo American that comes out on top.
But the ranking, which lists 30 mining operators – including the Canadian companies Endeavour and Barrick, and the Moroccan phosphate giant OCP – holds its share of surprises.
Financially, the sector demonstrates its importance in African economies. In total, “$15bn has been injected by the mining companies in our top 30 in the form of tax or social contributions, and 250,000 direct jobs have been created,” says Moez Ajmi, a partner at EY.
Energy transition
Furthermore, while minerals for the energy transition, particularly lithium, are currently at the heart of economic and geopolitical concerns globally, it is the producers of so-called traditional resources in Africa – even though some also contribute to the energy transition – that dominate the top positions: especially gold, copper, platinum, bauxite, and even coal.
It is also worth noting that being a significant contributor does not exempt companies from being suspected of wrongdoing regarding these same contributions. Among the ranked companies, several are accused or even convicted in cases of corruption, tax evasion, or maneuvers to pay lower royalties.
Understand Africa’s tomorrow… today
We believe that Africa is poorly represented, and badly under-estimated. Beyond the vast opportunity manifest in African markets, we highlight people who make a difference; leaders turning the tide, youth driving change, and an indefatigable business community. That is what we believe will change the continent, and that is what we report on. With hard-hitting investigations, innovative analysis and deep dives into countries and sectors, The Africa Report delivers the insight you need.
