• FINANCE FORUM
consider how local legal and regulatory frameworks interact with international agreements , conventions and trade .
Financing infrastructure , mining sector development and their legal consequences Mine companies have been able to play an outsized role in developing infrastructure in Africa due to their historical access to finance , access that African countries have traditionally struggled with .
Over time , mining companies and governments have sought different solutions to develop infrastructure where interests align , using several vehicles to do so , each with specific legal restraints :
• Public-private partnerships ( PPPs ) must account for existing laws and regulations , with private sector considerations often clashing with public sector policies and law , with disputes difficult to resolve without a dispute mechanism . Competition law and separation of powers is another fact composite to most PPPs .
• Green bonds have no single definitive definition or mechanism , while compliance and due diligence demands , plus the lack of specific rating standards , can make them administratively onerous .
• Multilateral financing must comply with both local and international law , not undermine the sovereignty of the host state or lead to corruption and can be at the mercy of prevailing international market conditions .
• Leveraging favourable trading regimes such as the African Continental Free Trade Agreement ( AfCTA ) to maximise the benefit of lower tariffs and reduced cost of doing business , keeping an eye on key jurisdictional relationships where cooperation is needed .
Working with practitioners experienced in infrastructure development , trade law , various technical experts and political will , there is no reason why we cannot efficiently conduct the flow of product from mine to market , mine machinery and spare parts from plant or port to where it is required most .
To attract infrastructure investment , governments and mining companies should create an enabling environment that eliminates these constraints by :
• Working together to create a harmonious and consistent working relationship , which are predictability highly attractive to foreign and local financiers and investors .
• Removing costly bureaucracy and implementing policies that increase competitiveness and make their mining sectors attractive for greater investment .
• Partnering with key local and international institutions to underwrite the financial stability of a project , while leveraging regional and international trade agreements where relevant .
• Strategically targeting infrastructure bottlenecks that constrain economic growth and if removed , accelerate infrastructure development .
30 • African Mining • March 2025 www . africanmining . co . za