A report released this week by Global Business Reports, titled Mining in Africa Country Investment Guide 2014, that named Rwanda among the 20 most exciting mineral jurisdictions on the continent, is the shot in the arm that the sector needed at the moment.
Despite steady the progress local mining industry has registered over the last decade, it has continued to be affected by speculations surrounding minerals from the region.
Rwanda’s proximity to DR Congo means that it cannot freely trade its mineral wealth without first submitting to a rather costly tagging and traceability scheme, internationally required of DR Congo and all its neighbours, as a measure to stop conflict minerals.
And despite being the first out of nine countries globally to fully implement this traceability system, Rwanda has struggled to regain its European and American buyers of tin, wolfram and coltan – because they prefer to buy from other regions that are not under international stringent measures.
Besides that, foreign investors in the sector have also slumped because implementing these traceability regulations come with an extra cost which businesses would rather avoid, especially if they can access similar opportunities elsewhere.
However, that Rwanda has been named among top mining destinations in Africa, it’s a vote of confidence in the country’s mining sector and its future.
International investors and dealers in the mining sector are now expected to gain more confidence in Rwanda’s mining sector and partner with government and local players in growing this highly promising industry.