Mining remains one of the biggest growth sectors in West Africa as interest in the region continues to increase.Duncan Bonnett, a director at Africa House, says this has been the status quo for some time, with some of the world’s biggest mining houses moving into the region.“There is a lot of opportunity in the mining sector, given that the region is rich in large deposits of gold, bauxite and iron ore. The green belt extends from Niger through Burkino Faso, Mali, Senegal and up into Mauritania,” he tells Freight News.“Also, in places like Guinea and Liberia, there is an increased amount of mining activity taking place.” Guinea remains one of the world’s largest exporters of bauxite, and efforts to increase output continue as operations are ramped up. Simandou, a 110km range of hills in southeastern Guinea, is also home to the world’s largest untapped iron ore reserves.Bonnett says several developments are also happening in Liberia, where iron ore has been found. “These projects are all gaining traction and the companies involved are making the right noises. There is a lot of optimism about mining potential across the West African region. We are seeing increased investment by governments in port, road and rail infrastructure, which bodes very well for the f uture.”Bonnett, who recently spent time in Nigeria, says there is a clear commitment from the region to diversify economies and explore the potential in the mining sector.“In Nigeria, the drop in the oil price has caused much turmoil. Many of the oil majors are now diverting their onshore activities to focus on deep offshore operations. So, there is a real motivation to diversify,” he explains. “In our discussions with several engineering service companies, we were enthused to hear about the building of new fabrication yards and other manufacturing facilities. Many companies are vying to get licences to manufacture locally for companies in Europe.”Companies that have not traditionally had a presence in West Africa are advised to start exploring the region, says Bonnett.“Now is a good time to start looking at the opportunities in West Africa because of the expansion of new industries and areas. There is not a huge amount of mining engineering competence – for example, in most of the regions outside of Ghana, there has not been that much mining until recently. This is a major opportunity for local companies to expand into West Africa.”He says that in Nigeria, companies are proactively looking outside the domestic market for opportunities, even as far afield as Namibia.Asked about some of the biggest challenges, Bonnett says the lack of infrastructure is still an issue, even with ongoing investment to combat this. “There is a real demand for more power and the focus is on hydro and renewables as the solution. Across the whole of sub-Saharan Africa, we are seeing the trend to utilise renewable energy. This is something we will see increasingly as the focus will remain on green energy solutions.”Looking ahead, Bonnett predicts that over the next eight to 10 years there will be a push for green hydrogen development out of Africa, and West Africa will not be left out.“West Africa already has some expertise in exporting oil. So, if these countries can manage to put the infrastructure together and retrofit their ports, there is no reason why they cannot become very successful exporters of green hydrogen.”Bonnett adds that one of the biggest opportunities in West Africa lies in its large number of consumers. “It is fast developing as the hub of consumerism in Africa. By the end of this decade, there will be some 40 cities with a million people or more. Across West Africa – be it Togo, Benin or Ghana – we are seeing the massive development of urban areas and infrastructure. Thanks to this, we are seeing more investment in domestic manufacturing.”
