About half of all the African countries either host significant operating mines or have advanced exploration projects, yet investors tend to shy away due to perceived risks such as high levels of corruption and political uncertainty, a new report shows.
There are many rankings that aim to help companies choose the best countries to set up shop in the region, such as Canada’s Fraser Institute annual report and Transparency International’s corruption index, but London-based finnCap has come up with one of its own.
The investment bank analyzed the 25 (roughly) countries in Africa that have working mines or or advanced exploration projects, incorporating the best known rankings available, but factoring each country’s geological potential and their current security risk.
So, what did they conclude? The first and main finding is that there is an urgent need to refill the mining project pipeline of all African countries with early stage exploration projects of all shapes and sizes.
But where to start? According to finnCap, investors would be better off in Ghana, Botswana, Namibia, Lesotho and Senegal, which already have companies successfully operating inside their borders.
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