After two decades, Investing in African Mining Indaba™ is able to look back with pride – and forward with enthusiasm.
Global interest in African mining tripled from the early 1990s to 2011, with the mining industry at first cushioned from the 2008 financial crisis as the traditional safe haven of gold exercised its appeal. The gold bubble this created was sufficiently substantial and sustained for benefits to flow through to secondary metals and secondary markets.
Looking ahead, we see a bright outlook for the resources produced by the mining industry, as all indicators show vital world economies – Europe, the USA and China – will rebound in 2015. Furthermore, the long-term demand for minerals will inevitably be upward as population growth continues globally, driving demand for resources. This will be entrenched by increased urbanisation and a growing middle-class in China, India and Africa. Already, over a third of Africa’s 1 billion inhabitants live in urban areas and that proportion is expected to rise to one half by 2030. Africa’s total urban population is expected to exceed those of China and India by 2050. As African economies have become increasingly stable and shown excellent growth, overseas investors have become more comfortable with placing investment on the continent. Doors have opened to regions and projects that were considered off limits some years previously.