African countries with proven mineral deposits may have found new ways of funding equity in joint ventures after Nigeria’s Dr. Oladele Alake, Chairman of the African Minerals Strategy Group, AMSG, advised that such natural deposits be used for equity instead of unsustainable loans.
Alake is Nigeria’s Minister of Solid Minerals Development and he made this call at a Ministerial Roundtable on Powering Africa in Washington DC.
Alake expressed concern over the pressure on African governments to take loans, despite global worries about the ability of many countries to handle their debts.
Nigeria, his country, is currently suffering debt overhang.
In a statement signed on Monday in Abuja by Segun Tomori , Special Assistant (Media) to Alake, the Chairman, AMSG suggested an alternative to loans.
He advocated for the use of proven mineral reserves as equity in joint ventures.
‘Only loans with project returns should be signed by Africa governments’ he advised.
The Minister’s presentation set the tone for discussions with investors, particularly with the United States International Development Finance Corporation (IDFC).
In meetings with IDFC officials, Alake shared Nigeria’s vision to reposition the solid minerals sector and diversify the economy.
He highlighted the focus on developing critical minerals and ongoing reforms to make the sector attractive to investors.
Under previous administration, Nigeria, through multilateral loans developed over 30 minerals, in the areas of cadestre management thereby de-risking them to allow for more investor interests.
Gold, lithium, ore, bitumen, and many others were mapped across the country.
The Chief Operating Officer of the US IDFC, Agnes Dasewicz, praised Nigeria’s renewed focus on solid minerals and expressed the corporation’s interest in supporting the mining sector value chain.
Further engagements between the Minister’s team and representatives of the US IDFC will explore areas of partnership, reinforcing commitment to strengthen Nigeria’s mining sector.
The Minister also held discussions with private sector players in the mining industry, including KRL International, securing their commitment to thoroughly evaluate opportunities in Nigeria’s mining sector.
