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Guard against obstacles to achieve mining forecast

Last week, government released its revenue growth forecast from the mining sector.

Last week, government released its revenue growth forecast from the mining sector.

Rwanda’s revenues from mineral exports are set to triple – from US$136.6 million (over Rwf87 billion), in 2012, to US$409 million (about Rwf261 million), by 2017, according to government projections.

Government would cease exporting unprocessed raw materials in order to maximise returns.

It is a rather hopeful outlook for the country given the past perception that Rwanda has no mineral wealth.

The government will need to guard against the bottlenecks that analysts say could largely contribute to lukewarm growth of the industry.

For the mining sector to prosper, it will need strict control.

A mining law is being reviewed by Parliament to streamline issues in the sector.

Any weaknesses in laws related to mining activities would definitely hamper controls for meaningful revenue to be generated from the sector.

It is understood that investors look at the country’s laws before sealing mining deals. 

So, weak laws give them a loophole to benefit more from country’s mining resources than the people.

Having mineral resources is one thing and benefiting from them is a totally different thing.

There is need for clear systems of information gathering of taxable information and exchange among agencies responsible for natural resource management so as to maximise the benefits from the mining industry.

To enjoy greater mining revenue requires proper audits of all production of minerals, and exports to ensure that the country gets its deserved share.

This way, we can be sure that mineral wealth will enhance socio-economic development of the country.

That said, government will need to create an investment climate that is free of obstacles while ensuring sound environmental management in mining areas.

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