African govts need to come out of their comfort zones

© EDITOR— The term “citizen sector” applies to the realm of activity that brings the power of private citizens to bear on important public issues.

Implicit in the idea of a vibrant citizen sector are vibrant citizens — individuals, families and communities that devote their time and energy to public causes. They attend town meetings, volunteer at schools, and contribute to bettering society. Emiliano Zapata once said, “If there is no justice for the people, let there be no peace for the government.” 

Our governments needs to come out of their comfort zones and work on policies which will safeguard our land and make our communities and nations better. 

In Africa we still have a big deficit in proper implementation.
African governments have to adopt developmental economic policies which will place economies on a production-lead growth trajectory in order to tackle the continent’s developmental challenges of unemployment, inequality and poverty. 

A particular focus is to ensure greater local processing of Africa’s abundant natural resources. Africa is host to considerable mineral reserves of strategic significance to the global economy, with an estimated in-situ value of trillions of US dollars making the continent the wealthiest mining jurisdiction. 

Africa can be defined as an economy with low levels of beneficiation, as most of its minerals are exported as ores or semi-finished minerals rather than high value intermediate to finished products.

The value addition to raw minerals is aiming at providing a strategic focus for Africa’s minerals industry in developing mineral chains and facilitating the expansion of beneficiation initiatives in the country, up to the last stages of value chain. 
In economics, the difference between the sales price and the production cost of a product is the value added per unit. 

Summing value added per unit over all units sold is total value added. Total value added is equivalent to revenue less outside purchases (of materials and services). Value added is a higher portion of revenue for integrated companies, for example, manufacturing companies and a lower portion of revenue for less integrated companies, for example retail companies.

The 2008 Nobel recipient for economics, Paul Krugman supports value addition of commodities from producing countries. It is possible to industrialise by leveraging on a country’s natural resources with government driving the beneficiation initiative. 
The Nordic countries benefited from value addition concepts.

Africa has a potential to attract and develop technological excellence in mineral industries. This involves a range of activities including large scale capital intensive activities such as smelting and refining as well as labour — intensive activities such as craft jewellery and metal fabrication such as machinery and equipment manufacture, research.

There are some constraints to beneficiation as we have limited access to raw mineral for local beneficiation as the bulk of current producers remain geared towards export of raw minerals, long-term contracts with their international clients

The international price determination of raw and intermediate minerals, which do not discount proximity to production further compounds the requisite access to input minerals for local addition.

African countries must encourage mining giants to smelt and refine as opposed to exporting raw minerals.

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