Region's plan to optimize EAC mineral exploitation

By Benard Natha
East African News Agency

ARUSHA, (EANA) - A team has been set up  to undertake a feasibility study on ways and means of adding value to the exploitation of mineral deposits in the five East African Commiunity (EAC) member-states, an official told the Independent East African News Agency (EANA).

The team, comprising officials of the East African Community (EAC) and those the Commonwealth Secretariat, will assess the potential for the optimum utilisation of the region’s mineral resources and the promotion of valueaddition industries in the EAC region.

According to Victor Kitange, an economic adviser at the Commonwealth Secretariat, the team will also assess the region’s capabilities in extractive industries.

The five EAC countries of Burundi, Kenya, Rwanda, Tanzania and Uganda are endowed with vast mineral resources ranging from gemstones, precious metals, base metals to industrial minerals.

However, the exploitation of these minerals has been limited, with the focus being on the production of commodities for export without additional processing to add value in the form of intermediate goods or final products.
David Nalo, the Permanent Secretary in Kenya's Ministry of the EAC, said the 2006 EAC Private Sector Development Strategy has natural resources as one of the EAC's priority sectors, with the potential to boost poverty reduction  efforts, intra-regional trade and private sector investment.

In its Industrialization Policy of 2010, Nalo said, the EAC was seeking to promote regional industries that use the region's natural resources to provide linkages among industries through diversification, specialisationand complementarity.

However, Nalo said efforts to promote investment in the minerals sector still faced several challenges, including lack of comprehensive information on the resources; lack of capital, skills and technology as well as weak regulatory frameworks and policies.

“It is therefore necessary to assess the potential for utilisation of the region’s mineral resources potential with emphasis on promoting value addition industries in the region, and strengthening the region’s capacity to extract natural resources,” Nalo said.

The EAC-Commonwealth Secretariat team is expected to gather comprehensiveinformation on the region's mineral resource base with potential for industrial applications and obtain copies of policies, laws, regulations and other supporting documents with respect to investment in mineral resources development and utilization.

The team will also identify the lead government authorities responsible for regulation and administration of different legislation governing mineral resource development and obtain views and concerns regarding utilisation of available minerals resources.