Thursday, May 31, 2018

LETTER: Include mining firms in Big Four Agenda

Base titanium in Kwale. FILE PHOTO | NMG Base titanium in Kwale. FILE PHOTO | NMG 
President Uhuru Kenyatta recently announced his Big Four Agenda, outlining his government’s priorities for his second term and laying the foundation on which his legacy will be built. The four areas of focus are food and nutrition security, affordable housing, enhanced manufacturing and universal health coverage.
At first glance these priorities look very sector specific, potentially leading to stakeholders operating in other sectors feeling left out of the national development agenda. However, if we take a moment to analyse them, we see that, owing to their cross cutting nature, the Big Four are also relevant to other sectors.
For example, it is difficult to have a conversation about universal healthcare without also including the insurance sector, or indeed agriculture without addressing the role of the banking sector in enabling sustainability.
Another angle worth exploring is the role other more nascent sectors can play in enabling quick realisation of the Big Four Agenda. Let us consider the mining sector; while currently it contributes just 1% to the country’s GDP, its potential to spur growth across multiple sectors is invaluable for the Kenya growth agenda.
A clear case in point is that of Kenya’s largest mining operation, Base Titanium’s Kwale mine. The Kwale Mine was recently granted Vision 2030 flagship project status in recognition of the significant contribution it is making to the national economy and its transformative impact on the mining sector.
The Kwale mine accounts for nearly 60 per cent of Kenya’s total mineral output value; it is the largest source of exports by tonnage through the Port of Mombasa and the highest valued export to China. It offers a good example of how mining firms can align themselves with the Big Four Agenda for inclusive growth.
The mine consumes Sh3.7 billion worth of non-labour inputs annually, contributing significantly, not only to supply chain employment, but the economic output of the goods and services supply sector. Base Titanium’s community investment strategy is built on four key pillars – providing social infrastructure, sustainable livelihood enhancement programmes, health and education programmes. Investment in these programmes has now collectively passed Sh1 billion and is having a significant impact on the socio-economic development of Kwale County.
Over 3,500 Kwale farmers are currently participating in Base Titanium’s agricultural programmes. These programmes are designed to enhance livelihood opportunities and many also act to address food and nutrition security.
Food and nutrition security is addressed through the food crop programmes. Participating farmers are provided training, initial inputs and ongoing technical support.
Base Titanium’s community development programmes are also contributing to the enhancement of Kenya’s manufacturing sector. The Cotton Programme, with 1,500 local farmers participating, aims to return Kwale County to a cotton growing hub like it was in the 1970s.
The sorghum programme, currently with 550 participants, has seen farmers enter into a memorandum of understanding with East Africa Breweries Limited, allowing them to sell their produce directly to the brewer, eliminating middlemen and helping to ensure the sustainability of the programme long after Base Titanium has ceased mining.
Realising improved health outcomes is not only a Big Four Agenda objective, it is a core focus of the Kwale County Government. Base Titanium has repeatedly partnered with the county government to achieve these goals.
While not directly a Big Four Agenda item, training and development of Kenya’s youth to ensure a highly skilled and competent workforce feeds into the Big Four and is an extremely important supporting component. Base Titanium is playing a key role in this regard. There is clearly potential for mining and many other industries across the economy to contribute to the government’s Big Four Agenda.
By working with stakeholders in these sectors and facilitating further investment, the government can accelerate the accomplishment of its objectives while bringing about real and sustained economic development for all Kenyans.
John Ngumi, director, Base Titanium

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