Oil, gas, mining and chemicals projects have witnessed an unprecedented boom in recent years thanks to the growing worldwide demand for energy and minerals. Africa is well-positioned to gain from this boom. The continent’s vast reserves of minerals and fossil fuels have the potential to lift millions out of poverty across the continent while also providing capital to improve infrastructure and other public goods and services.
Despite the large potential benefits, there remain numerous challenges to working in Africa’s extractive industries. These include the poor capacity of governments and the private sector to operate in the sector, an often-difficult investment climate, weak corporate and national governance structures, poorly developed transportation systems, and the persistent perception that the sector is just too risky.
Extractive industries in Africa have also historically often failed to deliver tangible benefits to the local communities in which they operate. Movements such as the Extractive Industries Transparency Initiative, which seeks to promote good governance so that the exploitation of natural resources can foster economic growth and reduce poverty, have helped local communities reap more windfalls from mining projects. Nevertheless, helping Africans benefit from the wealth of natural resources on the continent remains a long-term challenge.
IFC: A Sustainable Approach
The Oil, Gas, Mining, and Chemicals Global Product Group, a joint department of the World Bank and IFC, provides integrated services in the sector. IFC’s activities are based on the belief that, if properly managed, the development and use of oil and gas can provide substantial and sustainable long-term benefits, helping reduce poverty and improve people’s lives.
IFC catalyzes private investment by structuring innovative transactions and providing project finance, corporate loans, and equity to private companies for investments in oil, gas, and other mining and chemical projects. Our work is complemented by loans, guarantees, knowledge sharing, and other services provided by the World Bank.
IFC’s value in the extractive industries lies in creating sustainable projects that bring long-term benefits to communities, even after mines or oil fields are exhausted and close down. We closely integrate advisory services with investments to develop sustainable and socially responsible projects that create jobs and improve working conditions, contribute to other local industries, raise living standards, better environmental and social norms, address challenges such as HIV/AIDS, and bring long-term tangible benefits and prosperity to local communities.
Project Examples:
South Africa: Lonmin
Ghana: Ahafo Mine
Guinea: Simandu
Mozambique: Mozal
For more information contact:
Houtan Bassiri
Communications Officer
Johannesburg, South Africa
Tel: +27-11-731-3179
Email: hbassiri@ifc.org
