Mining sector faces serious challenges

It is not all moonshine and roses for the African mining sector which faces some serious challenges. While labour woes have continued to have an impact, along with legislative uncertainty in many countries, the continent’s lack of infrastructure and high cost of logistics is taking its toll. According to American economist David Hale, there is no doubt that there are many opportunities in the mining sector, but he said amidst this optimism around Africa and particularly sub- Saharan Africa, now more than ever countries would have to deal with the challenges. “The growth has been upward and is predicted to remain upward in the region at around 6%. If one takes the languishing South African economy out of it, it increases to over 7%, but the continent is still poor and only accounts for around 2% of global output. “Africa has its work cut out if it wants to capitalise on the growth that it is experiencing now,” said Hale.