How Can Investors Navigate the Regulatory Landscape Across Jurisdictions in Africa?
ADVERTISEMENT
The Assay - Mining investment news, insights and company profiles
Mining investment news, insights and company profiles
No Result
View All Result
Subscribe
  • Home
  • News
    • All News
    • Gold
    • Silver
    • Copper
    • Nickel
    • Lithium
    • Precious Metals
    • Base Metals
    • Battery Metals
    • Exploration
    • Development
    • Production
  • Articles
  • Assay Insights
  • Africa Insights
  • Videos
    • CEO Interviews
    • Investor Panels & Presentations
  • Company Profiles
  • Magazine
  • Newsletter
  • 121 Mining Investment
  • About
    • About Us
    • Our Team
    • Contact Us
    • Partners
The Assay - Mining investment news, insights and company profiles
  • Home
  • News
    • All News
    • Gold
    • Silver
    • Copper
    • Nickel
    • Lithium
    • Precious Metals
    • Base Metals
    • Battery Metals
    • Exploration
    • Development
    • Production
  • Articles
  • Assay Insights
  • Africa Insights
  • Videos
    • CEO Interviews
    • Investor Panels & Presentations
  • Company Profiles
  • Magazine
  • Newsletter
  • 121 Mining Investment
  • About
    • About Us
    • Our Team
    • Contact Us
    • Partners
No Result
View All Result
Subscribe
The Assay - Mining investment news, insights and company profiles
No Result
View All Result

How Can Investors Navigate the Regulatory Landscape Across Jurisdictions in Africa?

Q&A with Aimé Emmanuel Yoka, Managing Partner, Marys Capital Investments

22 February, 2021
in Investor Insight
Home Articles Investor Insight

What are some of the legal or regulatory considerations for investors looking to enter the African mining space?

The uptrend in resource nationalism should definitely be at the top of their agenda. Some of this is prompted by rising commodity prices, upcoming elections, local content requirements, and the desire by local authorities to capture a bigger share of the profits. When entering this space, investors should carefully review the Maplecroft Resource Nationalism Index for each country and cater for potential changes to the existing legislations and, in particular, mining codes. Having said that, they also need to understand the great variety in jurisdictions across the continent and the fact that some countries are quite stable. Botswana is a case in point.

How can newcomers navigate this type of regulatory landscape?

From experience, we tend to see that projects which fail or run into trouble are those that have neglected putting in the proper due diligence from project inception, not least of which pertains to the choice of local partners. The regulatory environment tends to be highly unpredictable – as was demonstrated by the recent drive by the central banks to revamp their monetary policies with measures such as the mandatory repatriation of funds or the restrictions to hold offshore accounts. Newcomers also tend to appoint expats with good industry or management knowledge but with little experience operating in the local environment, especially when it comes to government interactions. In this type of landscape, one must ensure rock solid agreements with stabilization clauses and the ability to raise disputes at an international level through investment treaties or mining conventions so that any breaches will not be dealt with by the local courts.

What are some of the most interesting investment opportunities you’ve seen over the past few years?

Gold immediately comes to mind given the current bull run, with prices breaking the US$2,000 level in 2020 and with its resilience during times of uncertainty. In recent years, good investments in West Africa have contributed to gold production rising by 60%, with Ghana, Mali, and Burkina Faso combining for a total of 6.7 million ounces per year. In the long run, cobalt, lithium, and copper should present excellent opportunities, especially as countries continue to place a higher focus on energy transition issues.

Where do you like to focus your investments?

We like investments that do not require large infrastructure spending on either rail or port. Precious metals are especially attractive, although they tend to be available in jurisdictions that require a higher level of due diligence or with stiffer competition.

What sort of impacts did you see from COVID-19 on the mining and investment industry across Africa in 2020?

The ongoing pandemic is still having a negative effect on mining projects, despite the sector being known for its safety discipline. We do note, however, that impacts vary by company size and project development stages. For those projects still in the exploration phase or financing, the impact has been relatively muted, but projects in production have been hit by government curfews and restrictions on movements amid rising numbers of cases. Nowhere is this more evident than in South Africa where more than 5,000 mineworkers have tested positive for the virus. This has reduced production by nearly 30% year on year.

With respect to investment, it has dried out in line with other industries as most investors implement cash conservation strategies due to the ongoing uncertainty.

Where do you see recovery coming from as we move forward into 2021?

Recovery started in late 2020, with some commodities rallying to record or decade highs, most notably copper and iron ore. This was due in part to demand from China, despite the supply constraints we saw on a global scale. Going forward, hopes of the new vaccines will renew investors’ appetites, especially as some assets are relatively cheap under the current environment. The drive from various governments to impose stiffer screening measures around mining sites should also boost sentiment and confidence that it is safe to return to operations.

TweetShareSend
Aimé Emmanuel Yoka, Marys Capital Investments

Aimé Emmanuel Yoka, Marys Capital Investments

Related Posts

Osino Receives Multiple Project Finance Offers for Namibian Gold Development
News

Osino Receives Multiple Project Finance Offers for Namibian Gold Development

byQ&A with Aimé Emmanuel Yoka, Marys Capital Investments
4 February, 2023
Snowline Gold Intersects Wide Zone of Shallow Mineralization in Yukon
News

Snowline Gold Intersects Wide Zone of Shallow Mineralization in Yukon

byQ&A with Aimé Emmanuel Yoka, Marys Capital Investments
4 February, 2023
Freeman Gold Moves To TSXV And Delists From CSE
Investor Insight

Creating Opportunities for Investment Across Africa

byQ&A with Aimé Emmanuel Yoka, Marys Capital Investments
3 February, 2023
Ascendant Resources Announces High-Grade Copper Assay Results at Venda Nova South Zone
News

Ascendant Resources Announces High-Grade Copper Assay Results at Venda Nova South Zone

byQ&A with Aimé Emmanuel Yoka, Marys Capital Investments
3 February, 2023
Assays Confirm 50% Boost to American Rare Earths’ Halleck Creek Zone
News

Assays Confirm 50% Boost to American Rare Earths’ Halleck Creek Zone

byQ&A with Aimé Emmanuel Yoka, Marys Capital Investments
3 February, 2023
Siren Gold to Raise A$2.6m to Fund Exciting NZ Exploration Opportunities
News

Siren Gold to Raise A$2.6M to Fund Exciting NZ Exploration Opportunities

byQ&A with Aimé Emmanuel Yoka, Marys Capital Investments
3 February, 2023
ADVERTISEMENT

Popular Articles

  • Bolivia Maintains it Historic Profile as a Global Silver Centre

    Bolivia Maintains Its Historic Profile as a Global Silver Centre

    0 shares
    Share 0 Tweet 0
  • The Rise and Rise of Indonesian HPAL – But Can It Continue?

    0 shares
    Share 0 Tweet 0
  • The Assay Guide to Palladium vs Platinum

    0 shares
    Share 0 Tweet 0
  • Zinc Mining & Market Outlook 2022-2025

    0 shares
    Share 0 Tweet 0
  • Japan Entering a Golden Age of Exploration

    0 shares
    Share 0 Tweet 0
  • Home
  • News
  • Articles
  • Investor Discussions
  • CEO Interviews
  • Company Profiles
  • Newsletter
  • Magazine
  • About Us
  • Our Team
  • Contact Us
Hyve logo

Please note: This Web site and The Assay magazine and the information and materials on this Web site and in The Assay magazine are not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, any regulated products, securities or investments. This Web site and The Assay Magazine do not, and should not be construed as acting to, sponsor, advocate, endorse or promote any regulated products, securities or investments. This Web site and The Assay magazine and the information and materials on this Web site and in The Assay magazine do not, and shall not be construed as, making any recommendation or providing any investment or other advice with respect to the purchase, sale or other disposition of any regulated products, securities or investments, including, without limitation, any advice to the effect that any mining or metals related transaction is appropriate or suitable for any investment objective or financial situation of a prospective investor. A decision to invest in any regulated products, securities or investments should not be made in reliance on any of the information or materials on this Web site or in The Assay magazine. Before making any investment decision, prospective investors should seek advice from appropriately qualified and licensed financial, legal, tax and accounting advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.

Privacy Policy

© 2023 The Assay

No Result
View All Result
  • Home
  • News
    • All News
    • Gold
    • Silver
    • Copper
    • Nickel
    • Lithium
    • Precious Metals
    • Base Metals
    • Battery Metals
    • Exploration
    • Development
    • Production
  • Articles
  • Assay Insights
  • Africa Insights
  • Videos
    • CEO Interviews
    • Investor Panels & Presentations
  • Company Profiles
  • Magazine
  • Newsletter
  • 121 Mining Investment
  • About
    • About Us
    • Our Team
    • Contact Us
    • Partners

Please note: This Web site and The Assay magazine and the information and materials on this Web site and in The Assay magazine are not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, any regulated products, securities or investments. This Web site and The Assay Magazine do not, and should not be construed as acting to, sponsor, advocate, endorse or promote any regulated products, securities or investments. This Web site and The Assay magazine and the information and materials on this Web site and in The Assay magazine do not, and shall not be construed as, making any recommendation or providing any investment or other advice with respect to the purchase, sale or other disposition of any regulated products, securities or investments, including, without limitation, any advice to the effect that any mining or metals related transaction is appropriate or suitable for any investment objective or financial situation of a prospective investor. A decision to invest in any regulated products, securities or investments should not be made in reliance on any of the information or materials on this Web site or in The Assay magazine. Before making any investment decision, prospective investors should seek advice from appropriately qualified and licensed financial, legal, tax and accounting advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.

Privacy Policy

© 2023 The Assay

Go to mobile version