By Neil Beaumont ,
Industry Leader: Mining – Marsh Africa
16/04/2024 · 2 minute read
These three areas are particularly poignant when considering Sub-Saharan Africa’s opportunity to play a key role in the green economy. While the region has high-quality metals (in terms of deposit and land type), mining companies and investors may opt for projects with lower-quality metals in regions like South America, North America, and Australia that can potentially pose less risk and a quicker return on investment.
To succeed, mining companies operating in Sub-Saharan Africa must prioritize risk mitigation strategies. Addressing political instability and investing in infrastructure development are crucial steps towards unlocking the region's potential in the green economy.
Companies can employ various strategies to mitigate individual risk and enhance investor appeal. Collaboration with the risk and insurance sector can assist the mining industry in developing risk financing solutions such as mine rehabilitation guarantees from risk finance insurance markets which can assist with freeing up working capital lines used as collateral for bank guarantees to more comprehensive risk finance solutions provided by captive insurance options. Demonstrating adherence to sound risk management and ESG principles can also strengthen funding and investment proposals.