Burkina Faso, as the third biggest gold producer in West Africa, behind Ghana and Mali, does not get the recognition it deserves. In addition to gold, the nation is blessed with manganese and other rare earth metals, making it a premier destination for mining. With this in mind, it is not surprising that the government is in talks with mining companies to develop a world-class manganese mine.
Gold is Burkina Faso’s most valuable export, accounting for almost 80% of its income. But, the reliance on gold is waning, with focus turning to the exploration of other mineral deposits. A diverse base of minerals, especially with the discovery of manganese, will help ensure that Burkina Faso develops multiple revenue streams.
Considering that there was no industrial mining in Burkina Faso up to 2007, the sector’s rise shows what can be achieved in a relatively short space of time with government support and relative political stability. Companies that have an interest in setting up operations in the country include Canada’s Endeavour Mining and UK-listed mining company, Toro Gold, both of which are active players in the West African mining space. Another Canadian miner, Roxgold, is in the process of completing an IPO to develop a 95,000oz concession. Key to Burkina Faso’s success is the high grade of its gold.
Despite a rosy outlook, there are challenges. Power shortage is hampering the progress of projects and the Burkinabe government has started to construct a 33MW solar power plant to combat the problem. This approach will hopefully encourage investors.
In addition to Burkina Faso, Mali has historically had a vibrant mining sector with the country hosting many productive mines. Gold mined in the West African country last year produced 50 tons of gold, with production expected to surpass 60 tons by the end of next year. With both Burkina Faso and Mali having a degree of political stability, coupled with low taxes and other incentives, the region will no doubt attract investors who might have been sceptical about the region just a year ago.
As Nigeria aims to kick-start its mining sector, there have been significant developments. Canadian company, Thor Explorations, has taken steps to develop a 535,000oz resource and could become a leading player in Nigerian mining. As exploration and new discoveries in the region ramp up, unlocking the potential of the projects will depend on the ability to raise finance, but it has to be the right type of finance. Traditional financing often ostracizes smaller players and curtails smaller projects. Crowdfunding is a method that is gaining traction, especially in advanced mining countries such as Canada. Whether this method can be replicated in Africa remains to be seen but innovation – be it technological or financial – will be advantageous for local and international companies.
In the last couple of years, mining has started to attract the attention of boutique private equity firms. In some cases, financing for mining projects can be misplaced. Private equity traditionally takes a long-term view, with the objective of matching long-term capital with long-term projects. This year has seen an increase in global private equity mining deals, with many mining companies considering these deals as the best way to advance their projects and also provide strategic and managerial expertise.
The cyclical nature of mining means timing is crucial for investors. The price of gold has improved significantly but, with other base metals still performing at low levels, appetite is tempered. Due diligence on any project will determine the way forward but despite advancements in legislation, the perceived lack of transparency and bureaucracy associated with license acquisition deters investor confidence.

Crowd fund the mines

The last time Nigeria’s football team won the Africa Cup of Nations in 1994, the infamous General Sani Abacha was president; South Africa had yet to hold its first democratic elections and Google didn’t exist.
Nineteen years on, the Super Eagles were transformed from outsiders to champions in just 21 days. This unexpected triumph sparked frenzied celebrations across the football-loving nation. As fate would have it, both teams featured Stephen Keshi, who captained the 1994 team and is the current coach of the freshly-crowned champions.
Like most fairy tales, Nigeria’s 1-0 victory over Burkina Faso came against the odds. It followed uninspiring performances leading up to the tournament, including a drab one all draw in their first match against eventual finalists, Burkina Faso. Most Nigerians lost faith when the team scraped into the quarter final against tournament favorites—Côte d’Ivoire. But a masterful display of skill and spirit saw Nigeria record a 2-1 victory.
<div id="attachment_1637" style="width: 310px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-1637" class="size-medium wp-image-1637" src="/wp-content/uploads/2017/04/161388585_10-300x200.jpg" alt="" width="300" height="200" />JOHANNESBURG, SOUTH AFRICA &#8211; FEBRUARY 10: Joseph Yobo and team mates celebrate with the trophy after winning the 2013 Africa Cup of Nations Final match between Nigeria and Burkina at FNB Stadium on February 10, 2013 in Johannesburg, South Africa. (Photo by Ian Walton/Getty Images)</div>
Belief restored, the Super Eagles soared even higher, comfortably dispatching Mali in the semi-finals, before defeating Burkina Faso by that lone goal scored by Sunday Mba, who plays for Warri Wolves F.C. As the final whistle blew, social media sites ignited with elation. Tweets rolled out by the second.
“Burkina Faso boasted that they would deal with us but we said ‘Mba’ [which translates to ‘No’ in Igbo], not on a Sunday.”
The billionaires went mad too. Aliko Dangote and Mike Adenuga put up cash rewards of $820,000 and $1 million respectively, to the victorious team.
As the celebrations continued late into the night, the memories of previous disappointments were expunged in the excitement. The Super Eagles and their fans now look forward to the FIFA Confederations Cup, to be held this summer in Brazil, where Nigeria will fly ‘Africa’s’ flag.
The fans demand nothing less than a top notch performance at the Confederations Cup and qualification for the World Cup in Brazil next year. It is a huge task for the country’s football administrators. Nigerian football is notorious for squabbles and infighting among its administrators, many of whom are political appointees. Indeed, barely 24 hours after the victory, controversy raged as the coach, Keshi, resigned in an apparent attempt to spite the Football Federation for threatening his position over poor performances. Keshi subsequently rescinded his decision after the Nigerian presidency stepped in to mediate.
It is now hoped that the drama that played out following the victory, will gather a new wave of commitment to put the Federations’ house in order. For Keshi, and his gallant men, the euphoria of securing their place in the history books is a tonic that they will surely savor before worrying about anything else.

Tag: Burkina Faso

FORBES AFRICA SOCIAL MEDIA

Crowd fund the mines

Mba! On A Sunday Of Madness And Gladness