By Femi Akinola
The Minister of Solid Minerals Development, Dr. Dele Alake has called on mineral-rich African countries to use their reserved endowed mineral resources of their countries as equity in joint ventures instead of taking loans that will worsen the plight of their people.
While speaking at a Ministerial Roundtable on Powering Africa in Washington DC, United States, Alake frowned at unwholesome pressure being mounted on governments in Africa by loan marketers despite global concern overdeclining capacity of many African countries to settle their debts.
Alake who doubles as the Chairman of the frican Minerals Strategy Group, a body of ministers of mining and mineral development in Africa, canvassed alternative to foreign loans, which he defined as using proven mineral reserves as equity.
His words: ”It is an interesting paradox that inspite of chronic indebtedness, African countries remain the target of institutional and private loan sharks marketing short and long-term credit to states, ministries, agencies and departments.
”Indeed, the very first month after a Minister is sworn-into office, he or she is literally bombarded by these marketers promising above the table and under the table deals that could be a trap.”
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Alake recalled how he had taken issues with indiscriminate loan deals of African governments as a journalist adding that only foreign loans that could be liquidated by the returns on the project should be taken to save the people from poverty.
His presentation set the tone of his meeting with investors on the sideline of the conference.
During the conference, Alake had top level talks with the delegation of the United States International Development Finance Corporation (IDFC), with whom he shared the vision of the current government in Nigeria to reposition the mining sector towards competing with others to attract investments.
He informed the delegation that Nigeria has an abundance of 44 critical minerals that exist in commercial quantities.
Responding, the Chief Operation Officer (COO) of the US IDFC, Agnes Dasewicz, lauded the renew focus on solid minerals by Nigeria.
She emphasized her corporation’s interest in providing the required support to strengthen the mining sector value chain.
