PUBLIC PRIVATE PARTNERSHIPS Kathleen Charles Sr. Investment Promotion Consultant Accra, 29 September...
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Transcript of PUBLIC PRIVATE PARTNERSHIPS Kathleen Charles Sr. Investment Promotion Consultant Accra, 29 September...
PUBLIC PRIVATE PARTNERSHIPS
Kathleen CharlesSr. Investment Promotion ConsultantAccra, 29 September 2015
ELL is actively engaged…
• Specialist consultancy in Responsible Mining and Sourcing, serving global clients: Governments, Corporations, NGOs, MDBs, Donor Projects et al
• Mining Product Focus: coloured gems, diamonds, conflict minerals (3TG), jewellery, electronics, conservation
• One of the world’s leading ASM consultancies providing practical solutions to complex problems and challenges
• Impact ASM Livelihoods in more than 40 countries• Play key role in support of responsible mining & sourcing
initiatives• Fairtrade gold, Fairmined gold, Responsible Jewellery
Council, broad range of conflict minerals certification systems
ELL is a catalyst…
Stakeholder Engagement & Understanding
•Our work is informed & enriched by working for clients of different perspectives•We help clients forge new alliances with different interest groups•We understand context, risk and opportunity, and know how to develop practical solutions
Our Core Competencies
Sustainable Supply Chains
Community Engagement
ASM & the Environment
Mineral Sector Development
Conflict Minerals
Public Private Alliances to Formalize
ASM
State of Play in ASM Sector
f PLAY ASM AFRICA• Located in remote areas
• Weak Infrastructure
• High rates of Illiteracy
• Lack of incentives to Formalization
• Little or no access to Financial resources and training on business management
Role of Public and Private Actors
ASM FINANCIAL CHALLENGES
ASM NEEDS
•Flexible financial
tools
•Longer term finance
adapted to
production and
marketing cycles
•Loans on affordable
terms
•Business
Development
ASM CHALLENGES
•Collateral
Requirements
•Social Exclusion
•Financial Sector
Reluctance
•Weak infrastructure
MONGOLIA MINER
• “We do not have a long history of ASM
partnerships and I was a wild person with a
mask/hat in search of raiding areas to mine
gold. Everyone around me was disorganized
and local government gave us lots of problems.
Now we have an agreement with a mining
company and Government is facilitating….and
we work in a much more regulated fashion and
there are clear benefits to our organization”
Mongolian Miner
Government
f PLAY ASM AFRICA• Promote ASM disparate groups to form legal associations
• Provide designated areas for ASM exploration based on geological data
• Finance infrastructure (e.g. energy, roads, IT) and extension services
• Establish land use planning models & ownership transfer
• Work with FI/MFI to develop innovative finance solutions for ASM
• Explore credit guarantee schemes and develop financial products catered to needs of ASM
Private Sector
f PLAY ASM AFRICA• Formalize traders as well ASM
• Provide capital finance via buy/sell contracts
• Create Long Term Finance Vehicles, including leasing, risk insurance, CGS
• Explore joint ventures with donors/funders for BDS training and capacity building in business management ITCAM Ecuador Case
• Suppliers provide specialized Training (equipment maintenance, processing, management, environmental protection etc.)
• Create incentives for ASM to be liberated from debt bondage
Artisanal mining at Sharin Gol, Mongolia, 2014. © Estelle Levin Ltd.
Benefits of ASM Formalization Strategy
• Issuing special licenses for ASM• Access to market and
commodity data• Legitimacy and Stability• Potential to Access Capital via
Partnerships• Access to Fair Prices and Fair
Trade• Technical training and
Government Incentives• Risk Mitigation Measures
East and Southern Africa ASM Formalization Conference
How ASM Can Reduce Risk Thresholds of Financiers
• Formalization of Producer Groups – organization, entrepreneurship,
market preparation, articles of association, ability to commercialize
• Development of a Business Plan – management systems,
operational guidelines, governance and due diligence
• Facilitation of Strategic Partnerships
• Value Chain Management
• Attract interest in VC business proposition – Ecuador Portovelo
Recommendations for ASM Public-Private Cooperate Initiatives
f PLAY ASM AFRICA• Harmonize national and regional strategies to transform the sector
• Value addition – set up polishing and refining centers
• Create innovative financial solutions to complex financial bottlenecks
• Harmonize ASM formalization/national mineral care policies/objectives
• Encourage Fair Mining & Fair Trade certification
• Encourage NGO/Donors to support programs to sensitize ASM on benefits of legal trading venues, including training on business management et al
Examples of PPP in Africa
FRICA
• NATIONAL LEVEL the PP Alliance RESOLVE, Washington, DC
• INTERNATIONAL RCM Initiative ICGLR in Bujumbura, Burundi
• SUPRANATIONAL Global Initiative to Combat Illegal Minerals Trading
• REGIONAL SPATIAL Corridors to encourage investment in energy and agriculture. Mining to be also included
• EPZ, SEPZ and FTZ Worldwide PPP initiatives to attract strategic investors
ASM WOMEN Producers
Thoughts?