FINANCE FORUM •
International financial institutions like the International Monetary Fund ( IMF ) or World Bank , for example , can provide a key source of finance for infrastructure development , with mining a vital part of the conversation as a key economic sector . However , working with these types of organisations means paying heed to the legal frameworks that govern them , such as the IMF Charter or regulations 11 , or the World Bank ’ s approach 12 to identification systems within PPPs .
Cross-border and regional infrastructure opportunities Outside of major international institutions , regional co-operation and legal integration can provide a significant fillip for infrastructure development and mining sector growth . The AfCFTA recognises the important role played by the continent ’ s regional trade blocs such as the Economic Community of West African States ( ECOWAS ) and the Southern African Development Community ( SADC ).
Infrastructure projects developed across borders can be advantageous to participating countries , driving economic growth in each market while benefitting the region simultaneously . Governing these relationships are regulations and agreements that ensure that each actor is accountable for their specific inputs , and ensuring such relationships are conducted with fairness in mind . An example is the Lesotho Highlands Water Project , 13 which is managed by the Lesotho Highlands Development Authority ( LHDA ) and is designed 14 to provide Gauteng with water while generating electricity for Lesotho .
The legal framework governing the project is drawn from the 1986 treaty signed between South Africa and Lesotho , which has since been amended with several protocols , a second bilateral agreement and the development of the LHDA and the Trans-Caledon Tunnel Authority in South Africa .
If designed with intention , cross-border projects can support the mining sector as well as their host economy through the provision of key resources and access to legal and financial expertise , enhancing mining profitability and sector viability .
Legal expertise and preparation maximise economic and mining synergies With the right strategies and collaborations in place , governments and the mining industry can proactively source the legal expertise needed to formulate the necessary policies and programmes .
The dynamics between the state , the mining sector , and infrastructure development are complex . Programme conceptualisation must consider the different legal risks and structures applicable to each .
If done correctly , and consistently , further opportunities to work with international and regional financiers and partners may arise . At each step , a cohesive legal strategy , which includes efficient cross-border transfer mechanisms , is needed to foster collaboration between governments , the private sector and regional bodies . As it currently stands , with the various SADC protocols and the AfCFTA , we unfortunately still witness the long queues of trucks at the various land borders , which not only increase the price of doing business but also increase the chances of corruption . There must be a better way which can only be achieved with the political will and collaboration between the different members of SADC .
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 .
With the February 2025 Mining Indaba theme , " Futureproofing African mining , today we are reminded that innovative financing mechanisms and collaborative frameworks hold the key to unlocking infrastructure potential and positioning Africa as a global mining leader . There is no doubt that the region can achieve more . •
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Innovative financing mechanisms and collaborative frameworks hold the key to unlocking infrastructure potential and positioning . www . africanmining . co . za African Mining Publication African Mining African Mining • March 2025 • 31