KENYA has been ranked as the sixth most attractive destination for mining investment in Africa, according to the Fraser Institute Global Annual Survey of Mining Companies for 2023. This ranking reflects the significant growth and reforms in the country’s mining sector.
The survey, which sampled 2,045 companies involved in exploration, development, trading, and mining, assessed countries based on ease and attractiveness for mining investments. Kenya achieved an investment attractiveness score of 55.22 percent, outperforming African mining giants such as South Africa (41.84 percent), the Democratic Republic of Congo (42.97 percent), and Tanzania (46.38 percent).
Elijah Mwangi, Principal Secretary of the State Department for Mining, noted this was Kenya’s first inclusion in the survey since the lifting of a mining moratorium in November last year, which had been in place since December 2019. ‘Emerging sixth in Africa is no mean feat. This is a pointer of investors’ confidence with the reforms we have undertaken, and we aim to make Kenya the choice destination for mineral investments,’ Mwangi stated.
Globally, Kenya ranked 46th, ahead of countries like China, Turkey, and Indonesia. The survey employed three broad parameters: the Investment Attractiveness Index, the Policy Perception Index, and the Best Practices for Mineral Potential Index to gauge overall suitability as a mining investment destination.
Since lifting the moratorium, Kenya has implemented extensive reforms, including the National Aerial Geophysical Survey, which identified 970 mineral occurrences, and updating the online mineral cadastre to remove non-compliant and expired licenses. Mwangi highlighted these reforms as crucial to the sector’s positive trajectory, though the full impact will be realized over time. He also cited measures such as the crackdown on illegal mining, amendments to the Mining Act 2016, the establishment of a mining police unit, and the formation of artisanal mining committees.
‘The reforms are holistic because they will touch on all bits of the mining sector. They are focusing on aspects like legal, operational, enforcement, licenses, and royalty remittance, amongst others,’ Mwangi added.
In the global rankings, Utah in the United States was the most attractive mining jurisdiction, while Botswana topped the list in Africa, followed by Morocco, Zambia, Namibia, and Cote d’Ivoire.
Kenya’s climb in the rankings is a testament to the country’s efforts to create a favourable environment for mining investment and showcases the potential for continued growth in the sector.
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