Africa’s economic trajectory is frequently contrasted with China’s. The Asian nation’s rise to economic superpower status in the twenty-first century is mostly due to its coal and steel mining sectors. The economic effects of mineral discoveries solidified the mining sector’s and South Africa’s continued prominence in the country’s economic development, even as Cecil John Rhodes worked to unify the country’s mining industry in the late 19th century. The key to the economic development of West Africa lies in the production of the numerous commercially viable solid mineral reserves that are dispersed throughout the continent. Realising the region’s full economic potential requires a successful marriage of privatisation and policy reform.
There hasn’t been much interest in West Africa thus far. Many of the regional government mining agencies claim that potential investors are unable to assess the resources’ inherent value because they do not have access to geological data. Concession flipping is a strategy used by wildcat miners whereby finds are profitably sold to larger businesses who possess the necessary financial and technical resources to develop the mines. The mining industry plays a crucial role in the growth, diversification, and stability of numerous economies worldwide. It serves as the foundation for several businesses, like petrochemicals and construction, which rely on foreign investment to support their mining properties.
The Simandou highlands of Guinea are home to what are believed to be the greatest undeveloped iron ore reserves in the world. Guinea’s mining industry has been the main driver of its economic progress. The biggest obstacle to the extraction of the numerous reserves is still infrastructure, despite the nation’s high iron ore grades and inexpensive processing costs. Although railroads are frequently the favoured mode of transportation, there are numerous limitations when it comes to the movement of mined materials. Despite these difficulties, political turbulence has subsided, and with the establishment of mining giants Rio Tinto and Vale in the area, a slipstream has been created in addition to gold being produced in massive quantities. If black gold is the main character in the tragicomedy of Nigerian economics, then the yellow type and its kin are the antagonists.
Beneath Nigeria’s earth sleeps a giant of huge economic potential enough to shift Nigeria’s Economic Trajectory. ; policymakers have thus far tiptoed around the issue of stimulating the sector. Coupled with a lack of geological data, it remains to be seen whether or not the solid mineral sector will have its rude awakening. With the West turning its back on Africa, proper resource governance will be essential to ensuring potential investors operate within a legal and fiscal framework to sustain both economic and community development.