African countries are claiming a bigger slice of the revenues from their natural resources from mining companies. Is this good and can it work?
Akufo-Addo cited Ghana’s recent deal for AngloGold Ashanti to return to the rich Obuasi Gold Mine after a five-year absence as a good example of a fair deal. It includes fiscal concessions by the government and significant commitments to local procurement and skills transfer by the company. Last year, the DRC increased the state’s stake in all mining companies from 5% to 10%, plus a further 5% on the renewal of each company’s mining right. It also required at least 10% shareholding by Congolese citizens, raised royalties on most minerals, and introduced a new 10% royalty on “strategic substances” . A 50% tax on “super profits” was introduced and 60% of mining companies’ earnings must now be kept in local banks.
And African attitudes have hardened since 2015, after the African Union High-Level Panel headed by former South African president Thabo Mbeki reported that from 2000 to 2010, African states collectivelyat least $50-billion a year in revenue through “illicit financial flows”. Mbeki calculated that 56% of these illicit flows came from mining and other extractive companies.
Though semantics kick in here, it seems that resource nationalism can be a positive. When it promotes national development and even, with luck, beneficiation and industrialisation, it’s a blessing. If it’s a desperate grab for dwindling resources by a failing government – think oil-rich Venezuela – it’s a curse.
Source: News Formal (newsformal.com)
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ISS TODAY: Zimbabwe’s slither towards increased authoritarianismMnangagwa has systematically curbed the independence of the judiciary, magistracy, prosecution and the country’s various commissions. By Derek Matyszak
Source: dailymaverick - 🏆 3. / 84 Read more »
ISS TODAY: Roots of Nigeria’s election violenceElections are the battleground for resource control, which raises the stakes and likelihood of clashes. By Sampson Kwarkye
Source: dailymaverick - 🏆 3. / 84 Read more »
ISS Today: Is this the right time to downsize Amisom?Without political solutions and better local policing, withdrawing peacekeepers from Somalia will be difficult. By Meressa K Dessu and Dawit Yohannes for ISS TODAY.
Source: dailymaverick - 🏆 3. / 84 Read more »
ISS TODAY: Is the scent of oil a solution for Somalia?ts dispute with neighbouring Kenya over offshore oil and gas resources must be carefully handled.
Source: dailymaverick - 🏆 3. / 84 Read more »
ISS Today: Is mob violence out of control in South Africa?Vigilantism is both a symptom and cause of a society where violence has become normalised. By Lizette Lancaster for ISS TODAY. issafrica YES issafrica Maybe not out of control...but, the police could react more quickly and make a few more arrests! The culture of looting, burning and destroying is barbaric and needs to be controlled. issafrica No, it's never abated since 1976
Source: dailymaverick - 🏆 3. / 84 Read more »
SpaceX Dragon capsule successfully docks on ISSSpaceX's new Dragon capsule successfully docked on the International Space Station on Sunday, NASA and SpaceX confirmed during a live broadcast of the mission.
Source: TheCitizen_News - 🏆 6. / 75 Read more »
SpaceX Dragon capsule successfully docks on ISS - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.SpaceX's new Dragon capsule successfully docked on the International Space Station on Sunday, NASA and SpaceX confirmed during a live broadcast of the mission.
Source: SABC News Online - 🏆 32. / 51 Read more »
Eskom will only implement load shedding if ‘absolutely necessary’ today'Our maintenance teams continue to work around the clock to bring units back online,' the power utility says. Load shedding is vote shedding and I don't think the anc realises this.
Source: TheCitizen_News - 🏆 6. / 75 Read more »
Possibility of severe thunderstorms, heavy downpours in Gauteng todayHeavy thunderstorms are also expected in Limpopo today.
Source: TheCitizen_News - 🏆 6. / 75 Read more »
High risk of rotational load shedding today – EskomEskom has urged residents and businesses to use electricity sparingly during the day.
Source: TheCitizen_News - 🏆 6. / 75 Read more »