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Centre for the Development of Enterprise Mining industry in ACP countries. Jordi Tío Rotllan - 13 December 2010. Topics of this presentation . General presentation of CDE Mining industry in ACP countries. 2. CDE - Centre for the Development of Enterprise. An Institution of the

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Centre for the Development of EnterpriseMining industry in ACP countries

Jordi Tío Rotllan - 13 December 2010

slide2

Topics of this presentation

  • General presentation of CDE
  • Mining industry in ACP countries

2

slide3

CDE - Centre for the Development of Enterprise

  • An Institution of the
  • ACP Group and the
  • EU – under the
  • Cotonou Agreement
  • Supports the sustainabledevelopment of the ACP privatesector
  • Financed by the EuropeanDevelopmentFund (EDF)

3

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Eligible Beneficiaries

  • Private Sector enterprises
  • Enterprises in the creation, expansion, diversification or restructuring phase in the ACP countries
  • Enterprises must have promising prospects for financial and economic viability as well as a positive development impact
  • Private Sector Intermediary Organizations
  • Professional associations, federations, technical centres, investment promotion bodies, development finance institutions, etc.
  • Service Providers
  • ACP consultants and consulting firms

5

slide6

CDE intervenes…

  • through Programmes
  • Increasingly, CDE interventions are being undertaken within the framework of Programmes (2/3 of the budget)
  • Cluster approach – grouped assistance
  • through ad-hoc Assistance
  • In response to individual requests and prospective investors

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slide7

PROGRAMMES

Competitiveness Enhancement

Sustainable Forestry

Maintenance in the Infrastructure Sector (Roads & Water)

Promotion of Aquaculture

Mining Industry

Tourism

Processing of cereals, fruit and vegetables

Energy

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slide9

Scheme of the presentation

Institutional context of the programme

Figures

Expected results

Sector context

Challenges

Key areas

Results

Conclusion

Support to the mining sector from CDE in ACP countries in the last 12 years

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Institutional context of the programme

  • The ACP-EU Partnership Agreement, signed in Cotonou on 23 June 2000, recognizes the importance of the ACP mining industry in its Article 68
  • Following the Mines 2000 forum held in Lusaka, Zambia the SADC-MCU and the CDE designed and implemented an integrated 5 year programme of assistance for the SADC mining sector starting in 2001

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Mines 2000 - Figures

  • Budget €4 million
    • 55% CDE
    • 30% PROMOTERS
    • 15% COFINANCING AGENCIES
  • European FACT fund
  • SYSMIN

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Mines 2000 - Expected results

  • Improve local expertise and skills
  • Upgrade product quality
  • Poverty alleviation through creation of jobs
  • Improve environmental practices
  • Improve health and safety regulations
  • Better access to European markets and information

14

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Sector context

  • The Southern African mining industry contributes to around10% of GDP in the region:
  • It involves 5% of total employment
  • Contributes to 60% of foreign exchange earnings
  • The region is a leading contributor to world output of:
  • Vanadium 46%
  • Platinum group metals 72%
  • Chromium 40%
  • Gold 21%
  • Diamonds 55%
  • Cobalt 20%
  • Manganese 15%
  • Copper 8%

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Mines 2000 - Challenges

  • Low-skilled personnel
  • Lack of appropriate technology
  • Lack of market opportunity awareness
  • Delays in issuance or refusal of operating licence
  • Poor enterprise management by senior personnel
  • Poor business decision making as a result of insufficient business knowledge

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Mines 2000 –

Key areas of support

  • Direct technical assistance and capacity building for enterprises/individuals
  • 2. Capacity building for Intermediary organizations
  • 3. Creation of information networks and market awareness
  • 4. Environmental and social awareness
  • Facilitating financing for enterprises

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90

FIRMS SUPPORTED

75 (83%) STILL IN OPERATION TODAY (2006)

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Mines 2000 - Results

  • Direct technical assistance:
  • 60 enterprises received an average of 2 direct technical assistance interventions from 2001 to 2005.
  • Including improvement of technical, financial and marketing management
  • 70% of the total budget

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60 firms which received technical assistance

Created/saved 2500 jobs

Total turnover of €120 million

40% of which from 15 major operators

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Mines 2000 - Results

  • Capacity building for Intermediary organizations
  • Training, seminars, workshops:
    • Appropriate technology in management in Mining, Namibia 2001.
    • Business development workshop for gemstone miners, Zambia 2001
    • Gemmology training centre, Mozambique 2001
    • Dimension stone training workshop, Italy 2002
    • Business development workshop, Malawi 2003
    • Environmental aspects of gemmology, Mozambique 2004
    • Dimension stone workshop for ACP architects, Italy 2002
    • Seminar on marketing of industrial materials, Namibia 2005

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Mines 2000 - Results

  • 2. Capacity building for Intermediary organizations
  • Publication of technical guides:
    • Dimension Stone quarrying in ACP countries
    • Code of environmental practice for mining projects
    • Technical guide on coloured gemstones

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Mines 2000

Results

  • 3. Creation of information networks and market awareness
    • 35 firms participated in international fairs in Europe:
      • CarraraMarmotec Fair, Italy 2001 & 2004
      • Women in mining Vicenza, Italy 2002
      • Vicenza fair, Italy 2004
      • Verona fair, Italy 2004
      • Tektonica International fair, Portugal 2004
    • Creation of SADC Mining Info Portal (out of service today)
    • Creation of (Assoc for dimension stone operators in Africa) and its website www.afristone.com

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Mines 2000 - Results

  • 4. Environmentaland social awareness
  • Dissemination of best practices
    • Organization of 2 workshops
    • Publication of a technical guide for SME
    • On-the-job training

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slide23

Mines 2000 - Results

  • 5. Facilitating financing for enterprises
  • CDE assisted 5 promoters in preparing bankable business plans to secure loans
    • Reserve assessment
    • Search for appropriate technology
    • Market study
    • Financial engineering

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Conclusion

  • It has been proved that CDE interventions has consolidated the development of SME, Intermediary organizations and services providers of the mining sector through workshops, seminars, guides, direct assistance, etc.
  • Economic impact: more than 2500 jobs and more than €120 million turnover (SADC – mining programme).

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slide25

Support to the mining sector from CDE

in the last 12 years

Zones of intervention

Source : CDE database

15

slide26

Support to the mining sector from CDE

in the last 12 years

Types of intervention

Source : CDE database

15

slide27

Dimension Stone CDE projects in ACP Africancountries

Source: Dimension stone quarrying in ACP Countries, CDE 2003

slide28

CONTACTS

  • Regional Offices

West Africa : Dakar (Senegal) Mr Gaston Baganzicahagaston.baganzicaha@cde.int

Central Africa :Opening in 2011

Eastern Africa : Nairobi (Kenya) Mr Farai Majurufarai.majuru@cde.int

Southern Africa : Gaborone (Botswana) Mr Sid Boubekeur sid.boubekeur@cde.int

  • Caribbean : Santo Domingo (Dominican Republic) Mrs Marie Louise Nortonmln@cde.int

Pacific: Opening in 2011

info@cde.int

CDE website: www.cde.int

  • Headquarters - Brussels

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Thank you for your attention

  • Jordi Tió Rotllan
  • info@cde.int

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