Africa Infrastructure Board initiative launched to attract UK investors
At the 2018 Investing in African Mining Indaba in Cape Town, private and public sector officials launched the Africa Infrastructure Board initiative.
The aim of the roundtable, hosted by the UK Department for International Trade (DIT), was to emphasise the unique proposition that UK companies and government could offer in providing a holistic approach to infrastructure development in Africa.
The Africa Infrastructure Board is an initiative that brings together and puts the case forward for choosing the UK as an ideal partner not only to develop projects in the mining sector but to create a holistic solution that will benefit the wider community by developing the associated infrastructure around the project.
The DIT hosted a number of African delegations attending the event to present the Africa Infrastructure Board.
The High Commissioner of UK to South Africa, Nigel Casey, mentioned that the UK would be increasing their efforts to work closer with African governments and private sector.
“Mining projects are much more than just mining,” he said, noting that they don’t work without the associated infrastructure.
He mentioned that the UK was conscious that there is plenty of competition out there when it comes to offering comprehensive solutions to African partners.
“We felt the need to up our collective game,” he said, “and create a new government industry partnership called the Africa Infrastructure Board, which brings together all the players in the UK whether that is government through the Department for International Development (DFID), or UK Export Finance, one of our best kept secrets, or the deep pockets of the Commonwealth Development Corporation (CDC), and private sector operators, all operating in one single place to offer an end to end solution.”
Africa Infrastructure Board to act as a catalyst
Oliver Andrews, chief investment officer at the Africa Finance Corporation (AFC) who was a panellists during the roundtable, noted how DFID – the UK’s government development arm – was instrumental in developing the model currently being used in infrastructure project financing.
He also reiterated the importance of the City of London, especially as most contracts are generally governed by UK law. The support network in structuring these deals, that is the legal, capital raising and technical side in London plays a vital role.
Craig Sillars from the Department for International Trade showcased a number of projects where opportunities in the mining sector are being structured in a way that truly develops the infrastructure and act as a catalyst to develop other sectors.
The UK DIT, for example, is working with a UK investor in Angola on resurrecting an iron ore mine. In addition to the mine they are developing a smelter, which will ensure in-country beneficiation of natural resources, and that will involve the extension of existing railways, and the expansion of a port.
“There will be 600MW of power attached to that,” he went on to add, “and 25,000 [acres] of agricultural land provided to grow biomass [feedstock] to help provide charcoal for the smelter.” Read more: Biomass shows promise for indirect industry growth
Partnering across continents to support Africa
Interestingly, he said that the UK was looking at partnering with China on the Simandou mine in Guinea once they take over the mine to help them develop a holistic solution to develop the local infrastructure and sharing with them the designs they have put together to ensure a sustainable project that benefits the local community as well as getting the high quality iron ore to market.
“The approach we are taking about,” Sillars told the participants, “is to produce master-plans that will benefit the communities not only for the next four to five years but the next 60, which is what we are doing in Angola, and that when the mining project is finished the infrastructure will continue to benefit the whole region.”
Francis Gatare, CEO of the Rwanda Mining Petroleum and Gas Board, had said that most of the Rwandan involvement with the UK had been through government, but that private sector interest was growing.
It was agreed that London would continue to be an important hub for investors in mining and in infrastructure, not only as a financial centre, but also for the legal and technical expertise it offered, and that the resurging interest from the UK to Africa can only be a positive development for both the UK and the African continent.
Article originally published on Mining Review Africa.
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