In many parts of Africa, mining remains a frontier sector, frequently arriving as the first large-scale investment in remote or underdeveloped regions; its impact, however, extends far beyond extraction.
According to Vis Reddy, chairman of SRK Consulting (South Africa) and global Africa lead, mining companies have been the pioneers in many emerging economies.
“They often go into areas where infrastructure is not yet in place, and they have to create it – not just for the mine, but for everything that follows,” said Reddy. “This catalytic effect is visible across the continent. In the Copperbelt of Zambia and the DRC, for instance, rapid mining expansion has driven urbanisation, new business formation and service industries.”
Transport corridors originally developed to export minerals are now enabling agricultural trade and regional commerce. Historically, mining companies have borne much of the burden of funding the rail, power and water facilities they need. This may initially reduce their competitiveness, but without that infrastructure, most projects are not viable.
Infrastructure as Catalyst
There is growing recognition, however, that a commitment to this infrastructure is vital to attract and retain private investor interest in primary, secondary and tertiary sectors.
“There is a meeting of minds across Africa,” said Reddy. “The lack of competitive infrastructure has clearly hampered development and, today more than ever, all stakeholders are talking about the need for better infrastructure.”
Darryll Kilian, partner and principal consultant in environment, social and governance (ESG) at SRK Consulting (South Africa), reiterated that mines create an epicentre for a range of other activities.
“A mine’s presence – and the products and services it procures – enable other industries and developments,” said Kilian. “The infrastructure that supports a mine then also becomes a catalyst for broader economic activity.”
He pointed to regional logistics initiatives such as the Lobito Corridor – which links the DRC and Zambia to Angola’s Atlantic coast – to illustrate how such infrastructure can even unlock cross-border trade and diversify export routes.
