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An International Monetary Fund (IMF) team led by Ms. Suchanan Tambunlertchai, Mission Chief for the Union of the Comoros, visited Moroni during March 8 – 23 and held follow-up virtual meetings and in Washington DC during April 5 – 28, with the authorities to discuss IMF support for Comoros' macro-economic policies and reform plans.  

Ms. Tambunlertchai issued the following statement today:

“The IMF team has reached staff-level agreement with the Comorian authorities on a 4-year program under the Extended Credit Facility (ECF), with requested access of SDR 32.04 million (about US$43 million). This agreement is subject to approval by the IMF Management and Executive Board, with Board consideration expected in the coming weeks.

“This is the first Upper Credit Tranche-quality program for Comoros supported by the IMF since 2013. The program will build on the recently completed Staff-Monitored Program and seek to: (i) support the authorities' fiscal consolidation efforts to create fiscal space for development needs and reduce debt sustainability risks, underpinned by fiscal structural reforms aimed at domestic revenue mobilization; (ii) strengthen the financial sector, including completing the restructuring of the state-owned postal bank SNPSF; and (iii) advance governance reforms to improve public financial management and further reduce corruption vulnerabilities.

“Comoros has been hit by several successive external shocks in recent years, including Cyclone Kenneth in 2019, the COVID-19 pandemic in 2020-21, and fallout from Russia's war in Ukraine. Economic recovery has been hampered by the lingering impact of high global commodity prices, with inflation reaching 20.6 percent and annual growth estimated at 2.6 percent in 2022. Fiscal revenues fell by 0.5 percent of GDP with external grants declining by 2.3 percent of GDP, significantly tightening financing constraints. Although considerable uncertainty remains in the global outlook, the economic recovery is expected to continue, with growth accelerating to 3 percent and average inflation declining to 10.3 percent this year.

“The government's fiscal policy is centered on a gradual medium-term fiscal consolation plan, underpinned by revenue administration, tax policy, and public financial management reforms. This strategy calls for enhanced coordination within the Ministry of Finance, and across public agencies including to mitigate fiscal risks stemming from state-owned enterprises. These reform efforts are critical to create fiscal space for much-needed investment in social development, including health and education, and infrastructure while maintaining fiscal and debt sustainability to reduce economic fragility.

“The ECF will support the authorities' effort to wind down the SNPSF and operationalize the new Banque Postale des Comores based on a business plan that will limit fiscal contingent liabilities risk. Measures to enhance the Central Bank's banking supervision and resolution capacities will ensure financial stability and a sound financial system that can promote growth and reduce poverty through greater financial inclusion.

“Continued efforts to strengthen governance and reduce corruption vulnerabilities, including the adoption of the revised anti-corruption law, will be key to improve the overall business climate. 

“The IMF staff team met with H.E. President Azali Assoumani; H.E. Mzé Abdou Mohamed Chanfiou, Minister of Finance; Mr. Younoussa Imani, Governor of the Central Bank of Comoros; Mr. Fouady Goulame, Commissioner of Planning; Mr. Oubeidi Mzé Chei, Counsel to the Minister of Finance; and other officials from the Ministry of Finance and the Ministry of Economy, the National Institute of Statistics, the Social Safety Net Project, and the Pension Fund. The team also met with representatives of key state-owned enterprises, the Chamber of Commerce, and key bilateral and international partners.

“The team would like to thank the authorities for their hospitality and cooperation, and open and constructive discussions.”

Distributed by APO Group on behalf of International Monetary Fund (IMF).

As global players make strides towards transitioning to a cleaner energy future, demand for critical minerals – which are essential for the production of lithium-ion batteries and associated technologies behind solar and wind components and renewable power systems – is projected to grow 500% by 2050.

As such, investment has begun to accelerate towards the mining and green mining industries, with South Africa well positioned to seize this opportunity.

Accounting for 60% of the world's manganese supply; 75% of platinum and 40% of palladium as well as boasting significant quantities of rare earth elements (REE), investing in South Africa's critical mineral resources will not only trigger economic opportunities such as job creation, revenue generation and the acceleration of the Just Energy Transition (https://apo-opa.info/3M5gNjm), but will be key for diversifying global supply chains and reducing prices: a goal set out by countries worldwide.

Speaking in an interview with eNCA about the upcoming African Critical Minerals Summit (ACMS) (https://AfricanCriticalMinerals.com/) – taking place in Johannesburg from November 6-7, James Chester, Senior Director of ACMS organizer Energy Capital & Power (ECP), stated that, “The ground has already been laid for deal making with South Africa in this sector (https://apo-opa.info/3B3WUmB). There is a group of 11 countries – the Mineral Security Partnership (MSP) – which was announced in 2022. This is a group of developed countries that are looking for projects across the world so that they can diversify their supply chain. There are billions of dollars waiting to be invested in South Africa and across Africa. We need to create the environment where that money can come in and those projects can be executed.”

Representing a US-led initiative that aims to bolster supply chains while catalyzing investment from Government and the private sector, the MSP is seeking alternative investment opportunities, focusing on minerals such as cobalt, nickel, lithium as well as the 17 REEs, and all attention has turned to South Africa. Amid concerns over market overreliance and supply bottlenecks, the MSP is looking at investing in Africa's entire mineral value chain. 

Stepping into this picture, the ACMS will connect private sector investment with public sector stakeholders, laying the foundation for new deals to signed across the market. The ACMS was officially launched in Johannesburg on April 14 at a networking event that united high-level public and private sector stakeholders. The Summit itself is scheduled to take place on November 6-7, hosted by South Africa's Department of Mineral Resources and Energy, and will welcome African and global delegates to discuss the role that Africa's mineral resources will play in accelerating the global energy transition, while addressing energy security concerns and advancing socioeconomic growth across Africa.

According to Chester, “It is the Department of Mineral Resources and Energy that is really driving this initiative. They want to put forward that they have a plan for critical minerals and want to articulate that further in November,” adding that, “The energy transition is here and it is the role of the private sector, together with the public sector, to ensure that people and businesses are ready for that, and that South Africa takes advantage and is not in the position of following the rest of the world, but actually leading the rest of the world.”

Distributed by APO Group on behalf of Energy Capital & Power.

The African Critical Minerals Summit is organized by African investment promotion and events producer ECP. Contact Senior Director James Chester at james@energycapitalpower.com / +27 606754850 for information about participating in the Summit.

Africa's mineral industry is the largest in the world and, for many countries on the continent, constitutes significant parts of their economies.

However, for the continent's mineral resources to translate to economic wealth, the critical mineral value chain needs to be enhanced, with regulatory policies and reforms, advancements in processing and refining capacity and heightened investment in exploration serving as key solutions.

Strengthening Investment in Mineral E&P

The World Bank has forecast that the production of critical minerals will need to increase by approximately 500% by 2050 to meet the rise in global demand and allow the world to avoid the worst impacts of climate change. As such, Africa's resources (https://apo-opa.info/3pmYNZa) are well-positioned to play a crucial role, thus allowing the continent to strengthen its position in green technology value chains.

Almost every African country is rich with either one or more critical minerals. Guinea, for example, is home to the world's largest bauxite reserves while Gabon is the second largest producer of manganese. The Democratic Republic of the Congo (DRC) hosts over 70% of the world's cobalt production, with Namibia serving as the world's leading exporter of uranium ore. Meanwhile, Mozambique and Zimbabwe are the world's third largest producers of graphite and chromium ore, respectively, while Zambia serves as the largest exporter of unrefined copper and South Africa accounts for the majority of platinum group metal (PGM) reserves, of which over 90% are situated in Africa.

However, significant levels of investment (https://apo-opa.info/3pkJyzT) are required to maximize the full potential of these resources. Stepping into this picture, events such as the upcoming African Critical Minerals Summit (https://apo-opa.info/41gMMCh) will connect potential investors with African producing countries, ensuring the continent takes its rightful place as a globally leading critical mineral supplier.

Aligning Policy with Industrialization Efforts

Meanwhile, as investment in African minerals increases, Africa's policymakers will need to navigate ever-increasing geopolitical competition while supporting domestic industries to ensure that value is captured within the continent. In order to maximize value creation, on a regulatory side, African governments will need to develop comprehensive policies, manage environmental risks, and ensure a favorable investment environment for the private sector to participate in the development of efficient critical minerals extraction and processing.

The challenge, however, is that a limited amount of Africa's critical minerals is processed on the continent. As such, multilateral development finance institution, the African Development Bank, has sought solutions towards overcoming value chain challenges through the development of a critical minerals strategy that includes securing a necessary skills base, ensuring reliable electricity supply, and improving the investment climate on the continent.

Recently, Zimbabwe has also made strides to reduce unprocessed exports through a law banning the exports of unrefined lithium. The move represents part of wider efforts by the government to stimulate growth across the domestic mineral value chain. Additionally, Regional value chain development, such as Zambia and the DRC's 2022 agreement for the joint development of electric battery manufacturing capacity, for example, could serve to strengthen Africa's position within the critical mineral value chain.

In order for the continent's natural resource wealth to translate into industrialization and development, countries endowed with vast deposits of critical minerals will need to develop a sound governance environment that targets processing minerals in-country for consumption in domestic and/or regional markets. As such, transparency of contracts, strong labor rights, and environmental sustainability will be key towards maximizing the opportunity afforded by enhancing the continent's critical minerals value chain, which is poised to translate into value addition, job creation, local content development, and an equitable knowledge transfer.

Increased investment, regulatory reforms and focus placed on stimulating the development and enhancement of the mineral value chain represent key steps towards consolidating Africa's position as a globally leading critical mineral supplier. All this and more will be unpacked during Energy Capital & Power's African Critical Minerals Summit.  Sponsors, exhibitors and delegates can learn more by contacting conference director James Chester at +27606754850 or james@energycapitalpower.com.

Distributed by APO Group on behalf of Energy Capital & Power.