The Vital Minerals Africa Group (CMAG) (www.CMAGAfrica.com), the advocacy group looking for to foster deeper relations between Africa and world markets and put Africa on the coronary heart of worldwide discussions surrounding vital minerals coverage, is working carefully with its members and companions to assist navigate a possible shift in US coverage as President Trump takes workplace in the present day.
The return of President Trump to the White Home has been topic to a lot hypothesis, with market members questioning how the incoming Republican administration will method vital minerals initiatives in Africa, in addition to different essential areas together with help budgets and the Lobito Hall.
Olimpia Pilch, Chief Technique Officer at CMAG, says that “we will probably count on a rise in vital mineral mission funding from the US, however it will rely upon a number of elements, together with the speed at which US home sources will be unlocked, developments in real-time demand, GDP development within the US, and the provision of low cost ore from different jurisdictions.”
“The important thing guideline for the incoming Trump administration will probably be safety. Vital minerals initiatives that feed into US defence provide chains, speciality alloys, and different sectors deemed of nationwide significance will stand a much better probability of accessing US authorities funding that these falling below a “inexperienced” or “vitality transition” banner, which have been prioritised by the Biden administration,” Pilch says.
“A larger safety focus will throw a spanner within the ambitions of many African nations trying to course of and refine extra vital minerals on the continent. US entities are unlikely to just accept the excessive danger of multi-billion refinery investments in risky areas that usually lack key components for business success – low cost and dependable vitality, well-maintained infrastructure, expertise and experience, beneficial taxation, and steady governments,” she provides. “Given the intensification of US-China competitors, areas with overt Chinese language affect are additionally much less prone to appeal to US personal sector funding.”
“Nonetheless, ample alternatives to maneuver additional down the worth chain will stay, particularly in relation to producing vital mineral concentrates. Comparatively extra steady nations resembling Botswana, Rwanda, Namibia, and Ghana stand to profit offered their governments are prepared to play by the Western guidelines of deal-making.”
Veronica Bolton Smith, CMAG’s CEO, says “CMAG is working carefully with its members to make sure a easy transition as corporations uncovered to African vital mineral provide chains search to find out if and the way the brand new administration will change the image for the trade.”
“One in all CMAG’s key priorities is to bridge the hole between Africa and Western markets with the goal of catalysing worth for each side. We will probably be working carefully with our companions within the US and on the continent to result in mutually useful outcomes below this new administration and past.”
Distributed by APO Group on behalf of Vital Minerals Africa Group (CMAG).
About The Vital Minerals Africa Group (CMAG):
The Vital Minerals Africa Group is an advocacy group that seeks to foster deeper relationships between Africa and world markets and put Africa on the coronary heart of worldwide discussions surrounding vital minerals and related provide chains. CMAG goals to allow the creation of resilient and diversified vital minerals provide chains that profit the communities during which they’re extracted, in addition to to speed up financial growth by way of the seize of value-adding actions.