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The 5th Drafting Meeting of the Technical Working Group on the African Union Model Law on Mineral Resources Development

The 5th Drafting Meeting of the Technical Working Group on the African Union Model Law on Mineral Resources Development

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The African Union Commission (Department of Economic Development, Trade, Tourism, Industry and Minerals), Expertise France and Agence Française de Développement.

October  14-17, 2024

Location : AU Headquarters, Addis Ababa, Ethiopia 

Arrangement type : In-Person

Contact :

Mr. John Youhanes Magok : NhialJ@africa-union.org |

 

The African Union Commission’s Department of Economic Development, Trade, Tourism, Industry and Minerals (ETTIM) partnered with the Expertise France under the project “French Facility for Technical Assistance to the African Union – phase III” to finalize the drafting and validation of the African Union’s Model Law on Mineral Resources Development. The authority to draft the Model Law was derived from the Decision Assembly/AU/Dec.605 (XXVII) on the outcomes of the retreat of the Assembly of the Heads of State and Government of the African Union that was held in July 2016, in Rwanda.

The Assembly requested the African Union Commission (AUC) to undertake a study on the management of African mineral resources, with a particular focus on optimizing revenue through the harmonization of royalties and fiscal regimes. And further, build on the study in order to develop a model law that will provide guidance to the Member States in reviewing their royalties and fiscal regimes. The Assembly further requested the Commission to undertake a study on the management of natural resources in Africa, including value addition to raw minerals.

The proper management of natural resources through an effective fiscal regime and sound public financial management will set African countries on course for sustainable development and prosperity. A harmonized mining laws can additionally be used to achieve other goals such as environmental protection, achieving the Sustainable Development Goals and giving incentives to keep value-added activities in the country thereby moving the country and its economic actors up the global minerals’ value chain.

The Model Law is expected to provide African governments with specific guidance on establishing and attaining regional standards to increase domestic revenue generation. The importance of creating and adopting model mining legislation in Africa is to ensure that international investors and mining companies cannot establish terms that are disadvantageous to the country in question. The Model Law also proposes a strong institutional framework for the regulation and management of the exploitation of mineral resources in Africa.

 

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