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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 ACP Group and the EU – under the Cotonou Agreement Supports the sustainable development of the ACP private sector Financed by the European Development Fund (EDF) 3 CDE in brief • Provide technical assistance and support services to private ACP enterprises Main mandate • Facilitate cooperation between EU and ACP enterprises • Promote investment, transfer of technology and skills • Its own expert advice and practical know-how • Specialised consultancy services CDE provides • Linkages to ACP and EU markets, expertise, investors and finance sources • Subsidy contributions for Business Development Services (BDS) 4 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 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 6 PROGRAMMES Sustainable Forestry Competitiveness Enhancement Promotion of Aquaculture Maintenance in the Infrastructure Sector (Roads & Water) Mining Industry Tourism Processing of cereals, fruit and vegetables Energy 7 Mining Industry in ACP 9 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 10 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 11 Mines 2000 - Figures • Budget €4 million • 55% CDE • 30% PROMOTERS • 15% COFINANCING AGENCIES European FACT fund SYSMIN 13 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 Sector context The Southern African mining industry contributes to around 10% 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% Diamonds 55% Platinum group metals 72% Cobalt 20% Chromium 40% Manganese 15% Gold 21% Copper 8% 14 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 13 Mines 2000 – Key areas of support 1. 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 5. Facilitating financing for enterprises 14 90 FIRMS SUPPORTED 75 (83%) STILL IN OPERATION TODAY (2006) 14 Mines 2000 - Results 1. 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 14 60 firms which received technical assistance Created/saved 2500 jobs Total turnover of €120 million 40% of which from 15 major operators Mines 2000 - Results 2. 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 14 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 14 Mines 2000 Results 3. Creation of information networks and market awareness • 35 firms participated in international fairs in Europe: • • Carrara Marmotec 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 14 Mines 2000 - Results 4. Environmental and social awareness Dissemination of best practices • Organization of 2 workshops • Publication of a technical guide for SME • On-the-job training 14 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 14 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). 22 Support to the mining sector from CDE in the last 12 years Zones of intervention 3% 23% Caribbean East Africa Southern Africa West Africa 14% 60% Source : CDE database 15 Support to the mining sector from CDE in the last 12 years Types of intervention 3% 3% Partial studies 17% Expertise, diagnosis 27% Technical assistance 17% Incentive to participate in fairs and partnership meetings Assistance for negotiations 33% Technical seminars with training Source : CDE database 15 Dimension Stone CDE projects in ACP African countries Source: Dimension stone quarrying in ACP Countries, CDE 2003 CONTACTS Regional Offices West Africa : Dakar (Senegal) Mr Gaston Baganzicaha [email protected] Central Africa : Opening in 2011 Eastern Africa : Nairobi (Kenya) Mr Farai Majuru [email protected] Southern Africa : Gaborone (Botswana) Mr Sid Boubekeur [email protected] Caribbean : Santo Domingo (Dominican Republic) Mrs Marie Louise Norton [email protected] Pacific: Opening in 2011 Headquarters - Brussels [email protected] CDE website: www.cde.int 25 Thank you for your attention Jordi Tió Rotllan [email protected] 26