Mineral output to hit 10pc of national GDP

Civicon Engineering Africa business development head Ben Kiilu at a briefing in Nairobi on Wednesday.Photo/Diana Ngila 

 

By  CHARLES MWANIKI

The African Development Bank (AfDB) estimates that minerals could contribute up to 10 per cent of Kenya’s GDP in the medium term if proper planning in the sector is followed through.

The country has recently made discoveries of minerals and fossil fuels, raising prospects for the mining sector that has in the past been contributing just one per cent of the annual national economic output.

Minerals and oil have often been viewed as a curse in some African countries, fuelling conflict in countries such as Congo and Nigeria, while failing to have a major impact on the economies.

The pan African lender has opened the Information Centre for the Extractive Sector (ICES), expected to promote information sharing on mineral discoveries and their utilisation among members.

“The opportunity to use the sector to accelerate national development and promote economic growth requires careful planning at this critical stage,” said the AfDB Director for the Eastern Africa Resource Centre (EARC) Gabriel Negatu on Wednesday.

The information centre will be supported by the United Nations Development Programme and the governments of Australia, Canada and the UK.

Kenya has struck oil in Turkana, with output expected to start flowing within the next five years. The country has also proven coal deposits in the Mui basin in lower eastern, and plans are underway to utilise the coal for power generation.

This year has also seen discovery of the mineral niobium and other rare earths at the Coast, while extraction of titanium has begun at the Kwale mines with shipments due to start later this month.

Australian mining company Base Resources expects to generate at least Sh60 billion ($700 million) cash surplus from the Kwale titanium mines, about half of which will be generated in the next five years.