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Situating Corporate Social Responsibility in the Africa Mining Vision: A Perspective by Antonio M.A. Pedro UNECA

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Situating Corporate Social Responsibility in the Africa Mining Vision: ... Bolivia, Venezuela, Ecuador, South Africa (Mining Charter) Governance gains: CSOs, ... – PowerPoint PPT presentation

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Title: Situating Corporate Social Responsibility in the Africa Mining Vision: A Perspective by Antonio M.A. Pedro UNECA


1
Situating Corporate Social Responsibility in the
Africa Mining Vision A Perspective by Antonio
M.A. PedroUNECA
2
Objectives
  • Inform audience about the AMV
  • Discuss briefly understanding of CSR
  • Outline the nexus between CSR and the AMV
  • Centred on the AMV, offer suggestions on the way
    forward

3
ECAs work streams
  • Soft and policy oriented
  • Focus on improving the enabling environment
    (policies, laws and regulations), enhancing
    institutional capacity, raising awareness and
    building consensus on emerging issues of interest
    to the continent, enhancing partnerships, and
    harnessing the potential of regional integration

4
The Africa Mining Vision Transparent,
equitable and optimal exploitation of mineral
resources to underpin broad-based sustainable
growth and socio-economic development 
5
The Tenets
  • Recognition of important role of NR to Africas
    economies
  • Transform finite NR capital and transient wealth
    into lasting forms of capital beyond the currency
    of mining
  • Broader understanding of benefits (beyond
    revenue streams)
  • From comparative to competitive advantage A
    developmental, transformative, knowledge-driven
    and integrated mining sector with downstream,
    upstream and sidestream linkages

6
The Tenets 2
  • A sustainable and well governed sector resource
    rents are well managed distributed and smartly
    invested intergenerational equity, environmental
    and material stewardship and CSR respected safe,
    healthy and advanced and stakeholders empowered
  • Mining as key component of a diversified and
    globally competitive economy
  • Unbundle to bundle Entry points for localization
    identified

7
Tenets (3)
  • A sector that anchors the development of a
    competitive infrastructure base through local and
    regional economic linkages
  • Optimal exploitation of finite resources at all
    levels (large and small-scale) and of all types
    (high and low value)
  • A sector that puts Africa geopolitically and
    strategically at its right place in the global
    international capital and commodity markets

8
The Process
  • Task Force AUC, ECA, AMP, AfDB, UNCTAD, and
    UNIDO and UEMOA
  • First draft presented at the First AU Conference
    of Ministers of Mines in October 2008
  • Draft informed by outcomes of several meetings
    and initiatives, including comments from October
    meeting
  • Vision adopted by AU Summit of Feb 2009

9
Why the AMV ?
  • Need to have a African common voice on how to use
    mineral resources for growth and development
  • Africa significant resource endowment A key
    comparative advantage to harness
  • Top producer of many minerals, but most exported
    as raw materials Potential for mineral
    beneficiation is great
  • We can learn from Nordic countries who were
    successful in promoting RBI

10
Why the AMV (2)?
  • Mining has relatively better rents than other
    primary sectors. These rents can catalyse growth
    of the other less competitive sectors
  • China and India Reshaping the ball game more
    competition for Africas acreage strengthens the
    continents bargaining power
  • Failure of the Washington consensus opens room
    for more policy space
  • The Latin America model (Chile and Peru) Being
    revisited

11
Why the AMV (3)?
  • Assertive governments Bolivia, Venezuela,
    Ecuador, South Africa (Mining Charter)
  • Governance gains CSOs, democracy, APRM
  • Tri-sector partnerships and public participation
    Being mainstreamed
  • New age miners Captains of industry are (slowly)
    embracing developmental and transformative
    approaches triple bottom line (financial
    success, contribution to social and economic
    development, and environmental and material
    stewardship)

12
Entry points
  • Resource rents Invested to improve physical,
    human and social capital and infrastructure
  • Expanded physical infrastructure to open up
    other resource potential (agriculture, forestry,
    tourism) and access zones with lower economic
    potential (densification, SDP)
  • Downstream value-addition To establish
    resource-processing industries that could provide
    the feedstock for manufacturing and
    industrialization

13
Entry points (2)
  • Upstream value-addition To develop resource
    supply/inputs sector (capital goods, consumables,
    services)
  • Technology/product development To incubate niche
    technological competencies in the resource inputs
    sector that can migrate laterally to other
    sectors to produce new products for other
    (non-resource) markets (e.g. Atlas Copco)

14
Challenges
  • Harnessing resource rents How to avoid the
    resource curse and manage price volatility
  • Credit crunch
  • Collateral use of resource infrastructure
    Defeating the Dutch Disease, investing in and
    maintaining non-lucrative feeder infrastructure
  • Downstream value addition High entry barriers,
    non-competitive sector due to high costs and
    non-availability of other factors, breaking TNCs
    preferences and tradition, lack of competition

15
Challenges (2)
  • Upstream value addition Centralised procurement
    by TNCs lack of competitive domestic business
    sector to explore opportunities in the sector
    poor HRD and skills base to foment development of
    local knowledge intensive industries
  • Sidestream value addition HRD and technology
    innovation centred in the West, few technology
    clusters in the South

16
The strategies
  • Improve the level/quality of Africas resource
    potential data (gm and mineral inventory) It
    strengthens the continents bargaining power
  • Fight for more fiscal space Self-adjusting
    resource tax regimes to capture windfalls beware
    of stabilization clauses
  • Introduce innovative licensing schemes to boost
    competition Go beyond the first come and first
    served approach explore competitive auctioning
    through differentiation of terrains (Liberia)

17
The strategies (2)
  • Boost Africas capacity to negotiate contracts
    and extract better deals (ALSF, UNDP, GTDF Crans)
  • Build robust institutions and enhance the
    capacity to administer the sector (auditing,
    monitoring, regulating, enforcement (SEA,SIA),
    fomenting linkages, managing price volatility),
    plan and build scenarios
  • Manage mineral wealth better (APRM, EITI,
    oversight committees)

18
The strategies (3)
  • Develop junior resource companies
  • Address infrastructure constraints (SDP, DCs)
  • Promote collaboration and competition among
    industry players to improve factor advantages and
    enhance competency, innovation and
    diversification
  • Harness the potential offered by ASM
  • Build stakeholder and local business capacity
    Support SMEs to enter the supply/procurement chain

19
The strategies (4)
  • Increase private sector confidence and
    participation
  • Establish the requisite enabling markets
    including local skills development
  • Facilitate RD and build knowledge networks of
    academia, private sector, government, etc
  • of upstream/downstream/sidestream to be locally
    retained

20
Implementation
  • Shared vision, but phased (Short, medium and
    long-term actions) and context specific action
    (There is no one size fits all)
  • Phases are not mutually exclusive Implementation
    can be fastened depending on internal and
    external factors
  • Political will and proactive government action
    Key
  • Improving natural resources governance Critical
  • Collective and concerted action/The African
    voice Indispensable

21
Implementation (2)
  • Capacity building, RD Fundamental
  • Partnerships Essential
  • Policy space and ownership of the development
    process The cornerstone!
  • Coordinated action between public, private and
    community stakeholders
  • The minerals complex requires a new
    institutional mindset Break government silos and
    departmental rivalry

22
Implementation (3)
  • Regional integration Harmonise policies, laws,
    regulations and standards to facilitate factor
    flows
  • Needs assessment Key
  • Dont be complacent The game changes fast (Six
    months ago we were all taking about a Super
    Cycle)

23
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24
A word on CSR
  • EC definition CSR, a concept whereby companies
    decide voluntarily to contribute to a better
    society (beyond mere compliance with legislative
    requirements)
  • The premise Mining generates both economic and
    social impacts including to local communities
    which need to be accounted for and mitigated
    (adverse impacts) or maximized (positive ones)

25
A word on CSR (2)
  • Challenge areas Action after mine closure
    profiling community needs (alternative
    livelihoods projects) asymmetric relations and
    power legitimacy of community representatives
    government regulation of CSR to encourage
    commitment and compliance boundary between CSR
    and social rights shifting responsibilities from
    the State to private operators community legal
    retribution and legal recourse voluntary vs
    mandatory JRCs capacity to enforce provisions)

26
A word on CSR (3)
  • Opportunities New GRI Mining Supplement making
    the JSE Socially Responsible Investment Index
    (benchmarking the triple bottom approach,
    including contribution to social sustainability)
    mandatory (???) BBE Pushing the CSR bar
    higher???

27
CSR and the AMV
  • The tentative framework for action of the AMV
    calls for improved public participation in the
    mining sector (consultation and information
    sharing/informed decision making/dispute
    resolution)
  • Governments to mainstream and entrench use of
    Strategic Environmental Assessment (SEA) and
    Social Impact Assessment (SIA)
  • Establishment of platforms for consensus building
    on priorities and options for the development and
    management of mineral resources
  • Domestication of relevant provisions on public
    participation of the Aarhus Convention and
    Equator Principles

28
CSR and the AMV (2)
  • Mining companies to develop, adopt, and implement
    CSR charters in accordance with the mining
    supplement of the GRI
  • AUC to develop continental CSR codes and
    standards
  • ICMM to enforce members adherence to its
    sustainable development charter
  • Chambers of Mines to popularize ICMMs Community
    Development Toolkit

29
Way forward
  • As decided by the June AU Summit, AUC/AMP to take
    lead in the preparation of concrete action plans
    and milestones in collaboration with UNECA, AfDB,
    AMP, RECs and other stakeholders
  • Develop specific guidelines/templates (including
    on CSR) to facilitate realization of the Vision
  • Publicize and popularize the vision and engage
    with private sector and CSOs (among other
    stakeholders) and build coalitions for change at
    national, sub-regional, and continental levels
  • Member states to internalize the Vision in their
    national development strategies

30
In Conclusion
  • The AMV is a broad aspirational framework to
    promote the development outcomes of
    resource-based growth
  • CSR initiatives must be part of integrated
    development plans and contribute to broad-based
    socio-economic uplifting and empowerment (A key
    pillar of the AMV) Mainstream SEAs and SIAs
  • Think beyond project level and being benefactor
    to developing effective partnerships for change
    Earn a real social license to mine!

31
Thank You!
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