The Rising Africa March 2014 by Canadian Council on Africa (CCAfrica)

Christian Paradis on Canada’s competitive advantage

THE EXTRACTION EDITION

RISING AFRICA

THE

CCAFRICA WORKING WITH YOU SINCE 2002

SPECIAL SECTION

South Africa

Mining Indaba host country is helping to shape the African mining vision

MARCH 2014, ISSUE 6

Mining Indaba 2014 Team Canada on the world stage

Windiga Energy Green solutions to Africa’s energy deficit

JEAN CHAREST

BENOIT LA SALLE & NED GOODMAN

RISING AFRICA

THE

MARCH 2014

Contents 18

City Hall, Cape Town

FEATURES 10 The

Power to Drive Change Windiga Energy is tackling the African energy deficit with green technology By Robert Nettleton

12 Canada’s

Mining Industry at a Glance An overview of NRCan’s Mining Sector Performance Report 1998–2012 By Robert Nettleton

18 OVERVIEW:

Mining Indaba 2014 A look back at the third largest mining conference in the world By Robert Nettleton

42 Create.

Enhance. Sustain. AECOM’s ethical business model is making Africa a better place By Elizabeth Bannerman

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Q&As

14 Expertise:

A Canadian Mining Export Glenn Nolan on our global status as mining leaders By The Rising Africa

16 Setting

Higher Standards

Pierre Gratton on committing

to corporate social responsibility By The Rising Africa

20 “Now Is a Good Time to Be Here”

Jean Charest on Africa as the next

great hotbed for global investment By The Rising Africa 22 A

Bridge for Canadian Business

Benoit La Salle on CCAfrica’s role in

building relationships in Africa By The Rising Africa 24 Seizing

the Opportunities

Christian Paradis and Benoit La Salle

discuss the Canada-Africa connection By The Rising Africa 34 Canada’s

Team Spirit

Pierre Boivin on the camaraderie of

Canadian investors on the continent

Port Elizabeth, South Africa

By The Rising Africa

ON THE COVER Christian Paradis on Canada’s competitive advantage

THE EXTRACTION EDITION

RISING AFRICA

THE

CCAFRICA WORKING WITH YOU SINCE 2002

SPECIAL SECTION

South Africa

Mining Indaba host country is helping to shape the African mining vision

Windiga Energy

Team Canada on the world stage

Green solutions to Africa’s energy deficit

| T H E RIS ING A F RICA

28 Spotlight on By Robert Nettleton

South Africa

MARCH 2014, ISSUE 6

Mining Indaba 2014

JEAN CHAREST

SOUTH AFRICA SPECIAL

BENOIT LA SALLE & NED GOODMAN

MARCH 2014

30 Pursuing

the African mining vision Interview with Mosa Mabuza, Deputy Director General, Mineral Policy and Promotion, South Africa By The Rising Africa

IN EVERY ISSUE 6

Editor’s Letter

45 Members List

46 Board of Directors

LETTER

Mining Indaba 2014: A Resounding Success On behalf of the Canadian Council on Africa, I am very pleased to share news about the overwhelmingly positive outcomes of the 2014 Invest in African Mining Indaba convention that took place in Cape Town, South Africa in February. Marking its 20th anniversary this year, Mining Indaba is well known as a prime location for building international partnerships and economic growth within the extraction sector in Africa.

Chris Kianza President and Founder of The Rising Africa / Vice President of the Canadian Council on Africa

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Against the magnificent backdrop of Cape Town and Table Mountain, Mining Indaba 2014 promised more than 7,500 global mining industry professionals countless opportunities to come together, share knowledge, network and do business on behalf of the industry. At the Convention Centre, the Canada Pavilion was a hub of activity for CCAfrica’s membership and VIPs seeking to build bridges between Canadian and African enterprise. We wish to thank the Canadian Government for their high involvement as hosts of the Pavilion. A large delegation of influential participants, led by Minister Paradis, came together to assert Canadian leadership within the African mining sector and to showcase on the international stage our proven industry expertise, which is highly coveted within emerging African markets. Mining Indaba 2014 boasted the largest Canadian presence in the convention’s two decades of history; the list of 80 delegates included government representatives, trade commissioners and heads of mission, and representatives from 35 Canadian companies. The various events staged at the

convention had double the reception from previous years. New introductions led to interest in joining CCAfrica and we’re pleased to welcome these new members. CCAfrica wishes to extend a heartfelt thanks to the key sponsors of the Canada Pavilion, as without their support the event would not have been the resounding success that we saw. These include the Canadian Federal Government, the Government of Quebec, The Mining Association of Canada (MAC), the Canadian Institute of Mining (CIM) and the Prospectors and Developers Association of Canada (PDAC). CCAfrica remains committed to building trade between nations with a presence in Toronto at the upcoming PDAC convention. Much has been planned to further support those who seek to do business on the Continent, with a specific focus on the extractive industry. The Council will provide many forums and introduction for delegates with a view to building fruitful relationships that benefit all parties. With the warm hospitality demonstrated in Cape Town during Mining Indaba fresh in our minds, we hope that you will join us in welcoming the many African delegations that will be present at PDAC. Regards,

Chris Kianza

RISING AFRICA

THE

GENERAL EDITOR | RISING AFRICA

Chris Kianza EDITORIAL MANAGING EDITOR | GORDONGROUP

Simon Osborne PROJECT MANAGEMENT | RISING AFRICA

Léonie Perron PROJECT MANAGEMENT | GORDONGROUP

Jodi Lackey TRANSLATION | RISING AFRICA

Luka Tremblay, Léo Vincenti ART ART DIRECTOR | GORDONGROUP

Leslie Miles ASSOCIATE ART DIRECTOR | GORDONGROUP

Kelly Read-Lyon DESIGN AND LAYOUT | GORDONGROUP

Jim Muir, Karl Hasenhuendl, Alina Oliveira CONTRIBUTORS

Nancy Argyle Robert Nettleton

Elizabeth Bannerman Simon Osborne

INTERVIEWS AND PHOTOGRAPHY

Robert Chitty (unless otherwise noted) ADVERTISING SALES DIRECTOR OF ADVERTISING SALES | GORDONGROUP

Kirill Kornilov ADVERTISING SALES | GORDONGROUP

Colleen Hayes The Rising Africa is published on behalf of the Canadian Council on Africa 72 Chamberlain Avenue, Ottawa, ON K1S 1V9 CANADA FOR GENERAL INFORMATION, CONTACT CHRIS KIANZA: Tel.: 613-565-3011 Toll-free: 1-888-852-9461 | Email: chris.kianza@ccafrica.ca | ccafrica.ca FOR ADVERTISING INQUIRIES, CONTACT KIRILL KORNILOV: Tel.: 613-288-5363 Fax: 613-722-6496 | Email: kkornilov@gordongroup.com | gordongroup.com ISSN: 2292-2792 The Canadian Council on Africa (CCAfrica) is the only Canadian organization dedicated to the economic development of Africa. It is a non-profit, membership-based organization established in 2002, the year of the Kananaskis G8 Summit, where the agenda included the development of a self-help plan for Africa. CCAfrica focuses on the future of African economy and the positive role that Canada can play in meeting some of the challenges in Africa. NOTE: The opinions expressed within are those of the authors and do not necessarily reflect CCAfrica policy. No part of this magazine may be reproduced in whole or in part without written permission of the publisher. CCAfrica can be a valuable partner to help your business reach the African market. Visit ccafrica.ca to learn more about the organization and how to become a Member.

CCAfrica frique

Canadian Council on Africa Conseil Canadien pour l’Afrique

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As THE CAnAdiAn CounCil on AfriCA’s CommuniCAtions pArtner, gordongroup is working to grow trAde between nAtions. We can help your mining business break new ground on the Continent and around the world—supporting your brand and your bottom line. 26 years in Ottawa, the heart of Canada’s mining leadership | One-stop marketing shop for strategy, design thinking and media tools | Expertise in mining-specific communications, indigenous partnerships, Corporate Social Responsibility eXplore new territorY. ConneCt witH gordongroup todAY.

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gordongroup.com Publishing partner, The Rising Africa magazine

INNOVATION

The Power to Drive Change Windiga Energy is providing access to energy, an essential element of development in Africa By Robert Nettleton

ub-Saharan Africa has an average annual gross domestic product growth rate of just over 5 percent. The lack of accessible energy is a major challenge and impedes economic growth in all African countries. Energy is a major line item in African mining production costs, but the supplyand-demand imbalance is creating major continent-wide reliability issues. In the Sub-Saharan regions of Africa, the demand for energy continues to escalate at a startling rate of about 10 percent each year, while the supply growth rate is not even half that, at only 3 percent. The result is a 7 percent deficit that continues to compound year after year. It is a situation that remains unresolved, mainly due to the limited availability of financing from public aid or concessional funding, compounded by the countries’ financial capability to contract debt. Hence, African governments are looking more and more to the private sector as part of the solution. With Africa being a source of many renewable energy resources, the opportuni-

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ties for the continent to open its doors to foreign renewable energy investors from the world’s private sectors are as vast as the land itself. One of the companies looking to seize the day is Windiga Energy. Windiga’s Leadership

Windiga Energy is a Canadian-based independent power producer (IPP) focused on developing, owning and operating renewable energy facilities on the African continent. Windiga was founded in 2010 by Mr. Benoit La Salle and benefits from his expertise in African operations and relations, developed while he was at the helm of SEMAFO, a gold mining company with operations in West Africa. Windiga Energy is a privately held company, owned by its management and by Dundee Energy. Co-owner Dundee Energy is under the stewardship of Ned Goodman, the founder and CEO of Dundee Corporation. Joining Messrs. La Salle and Goodman on the Board of Directors is the Chairman, the Honorable Jean Charest, former Premier of Quebec. Today, Windiga is leading renew-

able energy development in a number of SubSaharan African countries including Burkina Faso, where it is completing the development of its first solar project, as well as Ghana, Mauritania, Côte d’Ivoire and Congo. Taking into consideration the potential energy sources available in Africa, Windiga is currently developing three types of green energy source intiatives, namely solar, biomass and waste-to-energy projects. Windiga plans to establish power generation facilities that can sustainably benefit all stakeholders, including Sub-Saharan populations and governments, while respecting commitments to Windiga’s technical partners and shareholders. Based on Windiga’s research and experience, solar energy projects can be easily replicated and are therefore the initiative of choice in the various Sub-Saharan countries. “As we know, solar radiation is very high in Africa and available all year. Other sources are more complex,” says La Salle. “They do not allow for the same gain in efficiencies.”

The large quantities of untapped biomass in Africa—such as forest residues, cocoa shells, cashews, palm leaves, coffee residues and others agricultural sources—can be used to create biomass energy. Biomass is processed through combustion or gasification with steam turbines that are used to produce electricity. Converting waste to energy, or waste valorization, requires a number of key calculated inputs, such as regular and proper collection of waste, suitable waste characterization and proper valorization processes in order to produce sufficient energy at a competitive price.

PHOTO: SHUTTERSTOCK

Financing Solutions

One of the major challenges for Windiga is to bring projects to the financial closure and stage of construction. As an IPP, the company must conduct many types of up-front studies in order to determine the viability of each project, assess costs and ensure revenues over the course of a 20or 25-year period, a standard for renew-

able energy projects. Private projects in renewable energy are relatively new in Africa, and it takes time for stakeholders and government decision makers to familiarize themselves with private project financing. “Our objective is to achieve optimal financing conditions to reach an acceptable selling price,” says La Salle. “We need to identify the best financial conditions from the private sector development banks and to package all of this to gain necessary acceptance from the respective government authorities.” Public sector financing may be available to provide some benefits, such as low interest loans or subsidies to mitigate costs of production, but it has an impact on the balance sheet of the country’s debt and greatly depends on the lenders’ budgets as well as government’s financing capacity and commitment to renewable energy programs. The management of Windiga has a solid background in development projects in

Africa dating back to 1995. In addition, over the past 25 years, Mr. La Salle has been involved in investments in the African mining sector totaling over $500 million. This experience, he believes, can be applied to the energy sector. “A good understanding of the culture, the business environment and risk tolerances help us considerably to mitigate investment risks,” says La Salle. Windiga is open to exploring renewable energy projects in all African countries in the future, La Salle says, as long as the conditions are suitable to start up and to bring a project to a successful completion. “It entails many things: finding a welcome investment atmosphere and a serious willingness of governments to consider renewable energies, an adequate institutional framework, an energy context that permits renewable energy to be competitive, and a strong interest for privately financed projects,” he says. RA

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INDUSTRY

Canada’s Mining Industry at a Glance: Mining Sector Performance Report 1998–2012 Canada is one of the largest mining nations in the world. Our highly developed domestic industry produced 60 minerals and metals and contributed $53 billion to Canada’s Gross Domestic Product (GDP) in 2012. By Robert Nettleton

Overview of the Mining Sector Across Canada, 2012

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• China consumed 43 percent of the world’s metal output in 2011, encouraging the Canadian mining industry’s rapid recovery following the 2008 economic downturn. • Ontario led the provinces and territories with its share of Canadian mineral production. • Ontario, British Columbia, Saskatchewan and Quebec contributed 70 percent of Canada’s mineral production. The mining sector’s GDP declined 11.1 percent between 2007 ($59.6 billion) and 2012 ($53 billion). The 2008 global economic downturn had a significant effect on the mining sector’s real GDP, declining by $12.2 billion, or 21 percent, between 2008 and 2009. GDP is one of the most widely used economic indicators and represents the total dollar value of all final goods and services. Real GDP does not include intermediary services or products used to make a final product or provide a service.

Since 1998, the value of mineral production experienced an average growth of 6.8 percent, largely due to increasing demand from China. This includes metallic and non-metallic minerals and coal. The growth in the value of mineral production peaked in 2011 at $50.9 billion, but dipped 7.9 percent in 2012 as a result of the lasting effects of the global economic downturn. Growth is generally attributed to demands in emerging markets and high commodity prices that speak to the industry’s vitality and generated revenues.

Ontario Canada

40 30 20 10 0 2012

2011

2012

2010

2009

2008

2007

2006

2004

-2

2005

20 2003

3 2002

2001

2000

1999

1998

Exports or Imports ($ billions)

100

value in billions of Canadian dollars

VALUE OF MINERAL PRODUCTION 120

1998

Balance of Trade ($ billions)

• From 1998 to 2012, mining contributed a cumulative $154 billion to Canada’s balance of trade. • Canada typically runs a large negative balance of trade because it imports more than it exports. • The value of gold exports has increased more than fivefold from 1998 ($3.4 billion) to 2012 ($17 billion), becoming Canada’s most valuable exported mineral commodity. RA

• Canada’s mining industry has steadily increased real GDP since 2009. • The mining industry’s contribution to GDP has not yet reached pre-global recession levels.

Balance of Trade Total Exports Total Imports

Export Facts:

GDP Facts:

MINING SECTOR TRADE, 1998-2012

The value of minerals and metals exports fell 9 percent between 2011 and 2012, largely due to economic uncertainty at the time. The value of Canada’s mining exports has fluctuated quite regularly over the course of the years, particularly in 2009 where the value fell to $11.9 billion from $25.9 billion in 2008. Canada’s prosperity and the success of its mining sector depend heavily on foreign markets and international trade. Trade helps to fuel economic growth, create and sustain jobs and providing affordable goods and services to Canadians.

2012

The 2013 MSPR measured the sector against 23 defined indicators over a 14-year period, through collaboration between all levels of government and multi-stakeholder advisory committees.

• Between 2007 and 2012, mineral processing industries (e.g. metal fabrication) were responsible for 60 percent of the sector’s GDP contribution, compared with 40 percent for mining.

Mineral Production Facts:

1998

hile the mining sector certainly experienced a downturn during the 2008 global recession, the Mining Sector Performance Report (MSPR) paints a picture of a consistently expanding industry with potential for greater exploration and investments on the global stage.

Source: Natural Resources Canada.

200 150

100

10 2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1998

50 0

SOURCE: MINING SECTOR PERFORMANCE REPORT 1998–2012, NATURAL RESOURCES CANADA. ALL DATA AND FINDINGS WERE CURRENT AS OF AUGUST 2013.

60 40 20 0

2012

250

100

2011

300

120

1998

350

Bank of Canada Metals and Minerals Price Index 1998=100

Bank of Canada Metals and Minerals Price Index

400

Value of Mineral Production

1999

Current Dollars (billions)

VALUE OF CANADA’S MINERALS AND METALS EXPORTS value in billions of Canadian dollars

MINING SECTOR VALUE OF MINERAL PRODUCTION AND PRICE INDEX, 1998-2012

and Price Index, 1998-2012

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Expertise: Interview with Glenn Nolan, President, Prospectors and Developers Association of Canada By The Rising Africa

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‘‘

The Canadian companies are seen as leaders when it comes to environmental protection, sustainable development, engaging local communities and the technical expertise we bring to this industry.

‘‘

A Canadian Mining Export

Q&A

largest annual mineral industry show in the world. We had, in the last two years, over 30,000 delegates—we have about 10,000 members, both corporate and individual— and at the convention last year, we also had a large contingent from international locations. About one third of the delegates came from other countries and we had 126 countries represented. So what are the outcomes of this event from your experience?

The Canada Pavilion, Mining Indaba

he Prospectors and Developers Association of Canada (PDAC) is a national organization established in 1932 to represent the Canadian mineral exploration and development industry. The organization primarily maintains a national focus, but encourages leading practices in technical, safety, and social performance internationally as well. The Rising Africa spoke to PDAC’s President, Glenn Nolan, at the Canada Pavilion at Mining Indaba to hear his thoughts on the event, building new partnerships, and how Canada’s positive reputation plays into global development projects. Can you share with us a little bit about your organization, and specifically the conference, which is a big event in Canada within the extractive industry? THE RISING AFRICA:

The PDAC has been an association for over 80 years, and we’ve held an annual conference since that time and it’s grown to quite large proportions. We’re the GLENN NOLAN:

Well, it’s a great place to network. It’s where deals are being made. It’s where companies can learn more about what other smaller companies or properties are being looked at. Deals are being cemented and further development is happening. And it’s not just happening in Canada, of course—it’s about how the reach of our industry is global, and how Canadian companies are working around the globe to look at new resources. On that note, what do you feel has to happen to increase trade between Canada and Africa, and what are the barriers? What’s going on in terms of new opportunities that mining sectors can capitalize on?

One of the things that we’ve been promoting for a long time is positive environmental protection, social engagement with local communities, and transparency with governments that we’re working with. So it’s important when we go into a country that the rules are clear, that we understand what the process is to acquire land and maintain a holding in a country. But also, it gives our investors surety that the projects that we’re working on are going to be sustainable and will have long-term development potential. Do you partner with Indaba in some respects? Is there some cross-pollination going on between these events?

Well, it’s always good to see what other conferences are doing and what they’re talking about and how they’re organized. But it’s also important that PDAC has a

presence here, because we are such a large organization in the sense of our contacts, and the convention is the largest in the world. It’s important that we reach out to potential delegates and also to companies that want to either join our association or look at moving their business into Toronto or into Canada, so that they can participate in one of the largest stock markets in the world that focuses on mining, which is the Toronto Stock Exchange. And what about their presence here in terms of Canada’s position within the global context? How would you sum it up in terms of what you’ve seen so far here in Africa?

Canadian companies and the government of Canada have always been recognized as leaders in helping to develop projects globally, and it’s no different here in Africa. The Canadian companies are seen as leaders when it comes to environmental protection, sustainable development, engaging local communities and the technical expertise we bring to this industry. So partnerships are inevitable with our companies and we’re attracted to come to Africa to do work, because of the positive reputation we carry. Is there anything else you’d like to touch on?

It’s always nice to come out to attend other conferences around the globe, but I think that the premier event annually is the PDAC conference, because of the number of delegates, the number of companies that come to our show. And it also allows for greater dialogue on all those important issues that companies face, regardless of where they work. So, we look forward to seeing as many people as possible at the PDAC and look forward to hearing all these great stories that our companies are working on to develop into new opportunities for local populations, for governments and for the companies. The convention starts on March 2 and lasts until March 5, and we look forward to seeing you there. RA W W W. C C A F R I C A . C A

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Setting Higher Standards Interview with Pierre Gratton, President and CEO, Mining Association of Canada By The Rising Africa

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Q&A

ince 1935, the Mining Association of Canada (MAC) has promoted Canada’s mining industry on the international stage. In Canada, the organization works to educate the public on the true value of our mining industry, and to advocate among governments on policies that affect the industry. They launched the Towards Sustainable Mining (TSM) initiative in 2004, a program that promotes socially, economically and environmentally responsible mining. The President and CEO of MAC, Pierre Gratton, spoke with The Rising Africa at Mining Indaba about the progress this unique program has made over its 10-year history and the high standard of MAC membership. Thank you very much for taking part. Would you mind taking a minute to introduce yourself and tell us a little bit about the organization you represent? THE RISING AFRICA:

If I understand correctly, you have a unique program known as Towards Sustainable Mining, or TSM. And if I’m not mistaken, most of your membership— it’s broadly been endorsed and implemented in their recording.

It’s actually a condition of membership. Members of MAC have to implement Towards Sustainable Mining, and it’s a system for addressing key aspects of mining operations that are important to people, critical to the environment. Every year they evaluate how they’re doing against a range of performance criteria and report those results publicly, and every third year they have those results verified by a third party who ensures that what they’re recording is accurate. So it’s a pretty rigorous system that’s been around now for 10 years, and it’s really in the last couple of years that it’s starting to get a lot more attention, including outside Canada.

Sure. I’m Pierre Gratton, So in that sense, when you read the President and CEO of The Mining those indicators are you able to Association of Canada, based in Ottawa. We actually validate the impact on local represent Canada’s mining producers and so communities, for example? are very active in the CanaThis is actually something dian scene, in terms of repthat makes TSM unique— resenting the industry, being there’s no other system like the voice of the industry it in the world in mining. on a national level. And we You’re evaluating at the work in all sorts of areas and site level how well, for public policy—increasingly example, are the mine sites we have an international engaging with the local focus within MAC. That’s communities, Aboriginal This is really why I’m here. communities. How do they actually provide assistance to those something What kind of member communities, if they need that makes ship do you have—what it, to help them engage TSM unique— numbers? with companies? They have there’s We have 39 full members, systems in place to address no other all full members in terms concerns that communities system like it of mining companies with might have, issues that may in the world operations in Canada arise, anything from dust in mining. producing a wide range of control to noise level to commodities, from base employment issues. So it’s metals to precious metals to to really help the industry diamonds to iron ore to metallurgical coal, put in place what we consider to be good uranium and oil from the oil sands. So a real practices—and that, of course, is critical mix of commodities with members operating to earning and maintaining your privilege in pretty well every jurisdiction in Canada. to operate. PIERRE GRATTON:

‘‘

So this has been in operation for 10 years. You must have some pretty good sense across a continuum of who’s really demonstrating leadership.

You can actually look at performance across company mine sites within a company and you can compare mine sites across many companies to see how they’re doing. But in terms of leadership, what we’ve noticed is over the last 10 years, we’re able to demonstrate progress across the board for the industry, and that’s publicly available on our website. You’re able to show how the industry has been improving in these critical areas, like tailings management, like energy management, like community engagement. And I’ll be honest, you know, across the industry, some are leaders in some areas and others are leaders in other areas. It’s hard to say, is there one company out in front, across the board? Does it fit into the Equator Principles?

In many ways it does. In fact, what our system has done is provide the tools to operationalize the IFC standards and the Equator Principles. So it’s like an ISO 14000 system for mining; it’s a management system approached largely with some specific targets built in that allows companies to demonstrate that they’re doing what they committed to. So here we are at Mining Indaba. I’m curious how you found your experience here, and what you’re taking back to Canada based on your time so far?

I’ve really enjoyed it. I’m here largely from a policy interest. It’s a trade show and there’s business being done, but there are also a lot of discussions around some of the critical policy issues facing the industry, around relationships with communities, for example, or environmental issues. And so I’m certainly finding it a good place to have those kinds of conversations, to see what the industry’s doing and share what we have to offer through TSM and through other work that we’ve done, to help the industry improve how it operates. RA W W W. C C A F R I C A . C A

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OVER VIEW

COLLABORATION

Mining Indaba 2014 Investing in African Mining Indaba 2014 was held in Cape Town, South Africa in early February, marking the 20th anniversary of the third largest mining conference in the world. By Robert Nettleton

This year, Mining Indaba attracted more than 7,250 guests from over 107 countries and territories across 6 continents looking to network, do business and hear from the world’s foremost experts on Africa’s mining investment climate. The event was highlighted by a host of keynote speakers and special guests including the Honourable Colin Barnet, Premier of Western Australia, and Susan Shabangu, South Africa’s Minister of Mineral Resources. Mining Indaba provided a forum for attendees to discuss some key issues relating to mining, such as methods to unlock the continent’s mining potential, sustainable or responsible mining, and growing investment opportunities. Billion Dollar Map

Tom Butler, Global Head of Mining of The World Bank, used the conference as a platform to announce a $1 billion plan that will seek to fill in the gaps in geographical discovery of Africa’s natural resources, in order to more clearly define the nation’s untapped wealth. 18

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The project, dubbed the Billion Dollar Map, will work to unlock Africa’s true mineral potential and create a plan that would entice investors to join in. Butler said at the conference that many Africa’s subsoil resources have not yet been surveyed, creating potential for “an enormous amount of wealth left to be discovered.” Sustainable Development

Organizers dedicated one day of speaking sessions to issues relating to sustainable development in the mining industry. Sir Paul Collier, mining scholar and Director of the Centre for the Study of African Economies at the University of Oxford, was there to lead one of the sessions. Collier focused on how mining can contribute to social cohesion, but strongly advised businesses to take a sustainable approach to developing economies through mining, while still ensuring positive returns on investment. “Mining companies are businesses and businesses need to fundamentally make money, but there has to be some larger sense of purpose. Good management in

all companies lies in investing in a good sense of purpose and mission,” he said. Investment Opportunities

Andrew Monk, chief executive of VSA Capital in London, spoke at Mining Indaba’s first “Investment Discovery Forum,” making reference to the fact that while 2012 and 2013 were bad years on the investment front, Africa’s mining industry has much to look forward to in the coming years. Infrastructure problems, including power, rail, road, etc., are causing major challenges to the economic development of Africa. In some cases, productivity is reduced by as much as 40 percent in some regions. The solutions may in fact be with foreign investors in the private sectors. Tom Butler, who also sat on the panel, said that The World Bank “projects an investment of $87 billion in Africa in the next few years, with economic growth at 5 percent.” The 21st Annual Investing in African Mining Indaba will be held February 9 to 12, 2015 in Cape Town, South Africa. Visit www.miningindaba.com for more. RA

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Jean Charest in discussion with Barbara Giacomin (left), senior Canadian Trade Commissioner, and Lisa Stadelbauer, Canada’s Ambassador to Zimbabwe

Now “ Is a

Good Time to Be

Here ”

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Interview with Jean Charest, Partner, McCarthy Tétrault, and former Premier of Quebec By The Rising Africa

fter a distinguished 30-year career as one of Canada’s most prominent political leaders, Jean Charest resigned from public office in 2012. Now, as Partner at law firm McCarthy Tétrault, he assists clients in navigating the global business environment, with specializations in international trade, investment, and private transactions. The Rising Africa spoke with Mr. Charest about Canada’s reputation abroad and why some Canadian companies may be hesitant about launching into the African market.

Q&A

Well, trade with Africa is still relatively modest. We’d compare to what we’re doing with the United States, of course, and with the rest of the world. Canada, like other countries, has taken a stronger interest in what’s happening on the trade side in Africa, relative to aid and presence in la Francophonie because of the emergence of these new economies and the stronger demand on natural resources. The Canadian angle is very interesting because when we refer to mining, oil and gas, though we’re a relatively small country in terms of number of people, we are a trade group in mining, oil and gas. Fifty percent of the world’s investments in mining happen in Toronto at the Toronto Stock Exchange. And that translates into companies deploying all over the world, including Africa, and paying more attention to what’s happening in Africa, and the same is true for oil and gas. So for Canada, Africa is taking on a whole new significance. JEAN CHAREST:

Do you have a perspective on our reputation as it relates to corporate social responsibility, and how Canadians are viewed from the point of view of their practices here on the continent?

We have an advantage here at the outset because the branding of Canada is strong and we’re viewed as a pristine country, a country that’s peaceful, a country that has espoused values that are based on compassion and universal human values. If we compare with the United States, for example, we have that advantage of being viewed as a non-imperialistic, non-colonial country with two languages. So it’s a great advantage from the outset. Now, in the mining sector, in regards to corporate social responsibility, I think we do have a good reputation—we’re viewed positively—but that’s not something we can take for granted. It’s something that’s judged on a project-per-project basis and we have seen instances of Canadian companies who’ve got themselves into trouble

all over the world, rightly or wrongly, but they’ve been in the middle of controversy relative to the implementation of projects. So corporate social responsibility is something we take seriously generally, but not something we can take for granted. And the mistake would be to think that what applies in one community is true for another. What’s behind it, really, is a very real effort and a sincere effort to work with a community, and that is something that has to be done on a project-per-project basis.

offering foreign direct investment. If you’re able to pay attention to that and understand it, then you’re in a position where you can invest in a country and do well by your shareholders and do well by the country. But in the end the community has to be a winner and the country has to be a winner. Just to wrap it up, I’m wondering if there’s anything you’d like to share in terms of your experience on the ground here at Mining Indaba?

Well, Mining Indaba is interesting because beyond the cycle of mining—and those in the industry know all too well that there are cycles, ups, downs, value of currency, conflicts or whatever—Africa should be on the agenda of any resource company. If they are not asking themselves that question What’s true, I think, for “where does Africa fit in every project is even more this equation?”, then very important for Africa. frankly they are not doing If someone Research has to be very, their job. And Africa will wants to invest very important: research in play a more significant role in Africa, they terms of knowing about a as time will evolve and that absolutely have country, about its history, will go fairly rapidly. to go and see and about who the players The other thing I’d touch and feel and are, but also the kind of recommend to those who get a sense for it research that should be are looking at Africa would themselves. done on the ground. If be to remember South someone wants to invest America 40 years ago. And in Africa, they absolutely it’s not exactly the same, have to go and see and touch and feel and but one of the things that will be similar get a sense for it themselves. And there is how the governance of the countries will are issues here that they will not find back evolve over the next 40 years in Africa, and home, in terms for example of corruption, that will be a very positive story. It’s going of bureaucratic management. Governments to happen. And so if you look at where don’t operate the same way; the capacity of South America was 40 years ago and where governments are not the same. I had a file it is now, and translate that into Africa, in one African country and what you see— what it generally will tell you is that now is which is pretty much the typical scenarios a good time to be here. of the minister at the executive level—is a And there are countries that will stand very competent person. The person below out. We already know of a few of them: him is a strong person, and then below Ivory Coast, for example, has just been that, there’s not a lot of capacity. through a long period of conflict and what Which means that you have to work I’ve seen in Ivory Coast is very positive, in very differently than if you’re working in a leadership, institutional ability, stability, developed country—that you have to comand there’s a depth in terms of bureaucratic pensate, that you have to secure the people ability. So look at it from that perspective, you’re talking to. Because they also look at and this makes the continent a very interus as people who are coming in to exploit esting place. As Canadians even better so, their resources, and you have to have the because of language. We have the ability to ability to put yourself in their shoes to be in West Africa talking their language— understand how they see those who are huge advantage for us. RA What would you say to organizations that want to launch into Africa that perhaps are concerned about some of the risks attached? There have been some rather unfortunate things happen over here, and there are stereotypes as well…

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Thank you for taking the time, with your busy schedule here, to share some points of view. Can you give me a little bit of perspective—an overview, I suppose, on Canada’s activity in terms of trade with Africa? THE RISING AFRICA:

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(From left to right:) Jean Charest, Pierre Boivin and Benoit La Salle; Susan Shabangu and Chris Kianza; Leila Ouahit, Jean-Marc Evenat and Jean Charest

Interview with Benoit La Salle, Chairman of the Board ofÂ Directors, CCAfrica

A Bridge for Canadian Business By The Rising Africa

(From left to right:) Michael Jarvis and Ousmane Deme; Christian Paradis and Jean Charest; Marit Kitaw and Laetitia Gadegbeku

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Q&A

Can you share your perspective on trade between Canada and Africa? THE RISING AFRICA:

Trade between Canada and Africa is on a fast track—it’s expanding very quickly. We all know Africa is the continent of the future, so it’s extremely competitive. However, we all know that demography drives economic development and the demography of Africa is fantastic. Right now Africa is home to about 1.4 billion individuals, and that is expected to grow to 2.4 billion in the next 30 to 40 years. There is a massive movement out of agriculture into the middle class, into industrial companies and production. You’re going to see massive consumption coming into Africa, with the right level of purchasing power, and Canada needs to be a part of this. The Canadian Council on Africa is the bridge between Canada and Africa. It will provide the platform that Canadian companies will use to come to Africa and the platform for African governments to come present to Canadian companies. BENOIT LA SALLE:

What are some of the risks for companies looking to come into Africa?

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Canada is seen as one of the best partners in the world because of our management skills and structure.

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he Canadian Council on Africa (CCAfrica) is the only Canadian organization dedicated to the economic development of Africa. It involves the partnership of both Canadian and African enterprises, educational institutions, and provincial and federal government agencies—working together to foster better economic trade between the two countries. The Rising Africa spoke with Benoit La Salle, the Chairman of the Board of Directors of CCAfrica, about some of his opinions on trade relations between Canada and Africa, and the role of CCAfrica in helping to foster these relationships.

The biggest risk is getting trapped with a broker, a local representative, who does not have the same values, work ethic or even belong to the industry. Most of the bad experiences companies have had in Africa come from the fact that they were using the wrong partner. And that’s the biggest risk. The Canadian Council on Africa wants to be there to make sure companies are using the right approach. We want to protect them from these industry hackers who come in, do a really bad job and can give the industry a bad reputation. What’s the general perception among Africans toward the way Canadian industry is run and how we stand in terms of our corporate social responsibility practices?

We do not use the European structure, which is hierarchical and extremely directive. We have much more of a flat managerial structure and that works very well in Africa. Africans are extremely well trained; they want to work hard; they love their companies and are very dedicated. They prefer the Canadian style. Canada has been a great partner to Africa over the years. As you know, in Canada, we have a lot of bursary programs that help send African students to Canada. These students go back to their home country and do very well. We played a development role in that sense. These students now have ties to Canada, and Canada needs to use its expertise and these contacts to be a part of developing Africa. Canada is very good at social development, and to tie that with economic development, it becomes a winwin situation for Africa and Canada.

Do you feel the Council will provide endorsement for new entries into Africa?

Is there anything else you’d like to express in terms of your experience in Africa?

Absolutely. The Council has to be the platform to facilitate entry—to direct and to help and coach some of our Canadian companies, and to organize meetings where Canadian companies can meet the senior officials of African countries, to accelerate the process. If you go in cold, it can be a long process.

Africa may be scary. It may seem far. Eighty-five percent of the people who work in Africa prefer working in Africa over their home country. To me, it’s like jumping into a pool. You always think the water will be cold, but once you’re in it, it’s fresh and nice. Africa is fresh and nice. You’ll want to jump in. RA

(From left to right:) Mohamed L. Diarra, Lassana Guindo and Almahady Cisse; Daniel Vezina, Maureen Coulas and Philip Baker; Patrick Gregoire and Marc-Antoine Audet

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Seizing the Opportunities Interview with the Honourable Christian Paradis, Minister of International Development and Minister for La Francophonie By Benoit La Salle

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This is a huge opportunity for a win-win situation for both the African and Canadian people.

he Honourable Christian Paradis was first elected to the House of Commons in 2006 and appointed Minister of International Development and Minister for La Francophonie in 2013. He and his office work to engage Canadian expertise, interest and investment in international development opportunities in many African countries. Benoit La Salle, Chairman of the Board of Directors of CCAfrica, spoke with Mr. Paradis about the potential for Canada to participate in the current development in Africa, and the importance of seizing these opportunities for mutual gain. How do you see our presence now in Africa with the growth that is forecasted in the mining sector and in all sectors? BENOIT LA SALLE:

We need to have a good understanding about what is going on here and what the opportunities are. I think that an organization such as yours can give good perspectives to the government to help us make sure that we are on track in terms of our direction, what we want to do and accomplish. I heard many leaders say they were looking for partnership. So we have to be pragmatic and fully understand that this is exactly the kind of support and expertise that you provide. The bottom line is that this is vital: we need you. CHRISTIAN PARADIS:

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How does it feel knowing you will be the mentor of this relationship with Canada and participating in the development of Africa?

I truly believe in this. The potential here is enormous. People do have a lot of confidence in Canada, in our private sector and our government. Of course I will be happy to push on this file. It is very important because we see the booming economy and demography. This is a huge opportunity for a win-win situation for both the African and Canadian people. 24

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Convincing Canadian companies that are operating in Canada to consider Africa is a big job. Is the Canadian government going to go on a general awareness campaign or be more targeted towards certain companies who are not as well informed of the potential in Africa?

I think the paradigms have changed a lot in the last years. We have to change the story because the facts have changed. We are a very big player and there are countries of interest here. We see more partnerships—we see countries like Mozambique and Tanzania investing in their energy sectors, and they need Canadian expertise. Once again, we have to be pragmatic and demonstrate that the government is doing all of this because there are opportunities, and Africa is rich in resources, and is and will be an important market. We have to link it all together and tell that story. As a member of government, I will do my part in terms of public awareness. I was in West Africa recently, I am here now in South Africa and I am scheduled to come back at least twice before the end of the year. I will

keep continuing to get the facts, and after that, tell the story to Canada.

Mr. Paradis discusses Canada’s impact at Mining Indaba with Mr. La Salle.

This is very good news for Canadian companies. It’s excellent news for Africa. If we can bring our companies into Africa to participate, our students will see that they have job opportunities at the international level. On the education front, it’s an extremely important situation…

Absolutely, and we need to be opportunists. In terms of ingenuity, we are an innovative society. Our expertise is very well recognized and people do want it. And also we have close links with la Francophonie, for example, so we can be very active there and we share this common value. And what we did in the last year is just tremendous, in terms of governance, advancing democracy and now in la Francophonie we are talking about economic development. So the economic strategy will be pushed in the summit coming in Dakar in November. So we have to be opportunists and seize the opportunities, and this is what I intend to do as Minister for sure. RA W W W. C C A F R I C A . C A

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“I believe that South Africa is the most beautiful place on earth.

Title to come here

Admittedly, I am biased but when you combine the natural beauty of sunny South Africa with the friendliness and cultural diversity of our people, and the fact that the region is a haven for Africa’s most splendid wildlife, then I think that we have been blessed with a truly wonderful land.” – Nelson Mandela

Deck TK. Byline TK.

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SOUTH AFRICA SPECIAL

Title to come here Deck TK. Byline TK.

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SOUTH AFRICA SPECIAL

Spotlight on South Africa By Robert Nettleton

andela’s passing is still very fresh in our minds, but in many ways, the gift of hope and optimism he bestowed on South Africa lives on today, and the country continues to build upon it. Economic indicators show promise, suggesting a healthy resilience in the face of global economic instability. In fact, many of South Africa’s key industries are experiencing growth, including mining, energy, tourism and agriculture.

International Relations

South Africa’s international relations and foreign policies are guided by the concept of ubuntu, meaning “humanness,” a philosophy that encourages respect of all nations, peoples and cultures. The concept greatly influences South Africa’s work for global political and socio-economy stability, security and peace. South Africa currently sits on the United Nations Security Council (UNSC) and works to promote the African Agenda of peace, security and development. South Africa’s biggest and most important development partner is the European Union, which provides 70 percent of all of South Africa’s external assistance funding. *SOURCE WWW.GOV.ZA

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Industry: Mining

Industry: Tourism

As one of the world’s strongest mineral industries, South Africa is known for being a top producer of a variety of minerals, including platinum, vermiculite, chromium, palladium, zirconium, vanadium, rutile, ilmenite, manganese, and gold. The mining sector accounted for 8.3 percent of the country’s GDP in 2012, according to the Chamber of Mines of South Africa. Gold, platinum group metals, iron ore and coal accounted for 81 percent of South Africa’s total mineral sales in 2012. Canada remains a huge investor in the African mining industry, contributing $1.7 billion towards funding Africa mining projects according to the Canadian International Development Platform. In return, 2012 saw Canada yield $12.9 billion in revenue from Canadian-owned mines in Africa.

Since the fall of apartheid, South Africa has become a booming international tourism destination, noted for its scenic beauty, cultural diversity, and its eight world heritage sites that continue to draw tourism to each of the nine provinces. International tourism grew in 2012 by 10.2 percent year-on-year to almost 9.2 million visitors, with the biggest surge in growth coming from Asia and South America. According to South African Tourism, the country is a leader and pioneer of responsible tourism, encouraging tourists to aim for the lowest possible impact on the environment and local culture during their stay in the country. South Africa is also home to “The Big Five”: rhinos, elephants, lions, leopard and buffalo.

* SOURCE WWW.GOV.ZA, WWW.CIDPNSI.CA, HTTP://WWW.BULLION.ORG.ZA/

South Africa at a glance

POPULATION:

48,601,098 (2013 est.)

SIZE: 1,219,090 km2 (slightly less than twice the size of Texas) PROVINCES: 9 in total (The Eastern Cape, The Free State, Gauteng,

KwaZulu-Natal, Limpopo, Mpumalanga, The Northern Cape, North West, The Western Cape)

PRESIDENT:

GOVERNMENT:

*SOURCE WWW.GOV.ZA, WWW.SOUTHAFRICA.NET

Jacob Zuma Republic, three-tiered

OFFICIAL LANGUAGES: IsiZulu, IsiXhosa, Afrikaans, Sepedi, English, Setswana,

Sesotho, Xitsonga, siSwati, Tshivenda, isiNdebele

NATIONAL SYMBOL:

Springbok antelope

ECONOMIC SECTORS: Mining, energy, manufacturing, tourism and agriculture EXPORTS: $101.2 billion (2012): gold, diamonds, platinum, other

metals and minerals, machinery and equipment

IMPORTS: $106.8 billion (2012): machinery and equipment, chemicals,

petroleum products, scientific instruments, foodstuffs *SOURCE HTTPS://WWW.CIA.GOV

Industry: Energy

Industry: Agriculture

The primary energy sources for South Africa include petroleum, natural gas, electricity and coal, nuclear and renewable fuels. The South African government actively supports sustainable green energy initiatives on a national scale, as indicated in the Integrated Resource Plan, which calls for 42 percent of electricity generated must come from renewable sources in as little as 20 years. In November 2012, a new revised national energy-efficiency strategy was approved by Cabinet, which sets a target for energy efficiency improvement of 12 percent by 2015. The strategy is already well on its way to being gradually implemented in municipal and federal levels of government.

South Africa’s agriculture sector is crucial to addressing many of the government’s priorities, including alleviating poverty, creating jobs and food security. The sector is made up of demanding crop production, mixed farming and livestock-farming to produce corn, wheat, sugarcane, fruits, vegetables, beef, poultry, mutton, wool and dairy products. When the entire value chain of Africa’s agriculture sector is taken into the account, it contributes 12 percent of the country’s GDP. It is therefore an essential component to country’s socio-economic development. Approximately 9 percent of Africa’s labour force is concentrated in the agriculture sector.

*SOURCE WWW.GOV.ZA

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SOUTH AFRICA SPECIAL

Mr. Mabuza with Setepane Mohale, Chief Director, Minerals Policy and Promotion, Department of Mineral Resources, South Africa

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Q&A

Pursuing the

African

mining vision Interview with Mosa Mabuza, Deputy Director General, Mineral Policy and Promotion, South Africa By The Rising Africa

Would you like to take a few moments and share some perspective about who you are and your background in the South African government? THE RISING AFRICA:

Sure. My name is Mosa Mabuza. I work for the Department of Mineral Resources and am responsible for policy development, as well as investment promotion. I am privileged to work with a team of 100-odd people who are truly committed to demonstrating the opportunities as part of their mandate, and sharing with a targeted audience these opportunities that exist for development in South Africa in particular. But South Africa’s development, for us, has to be located within broader African development. In that regard we have a vision for mining—the African mining vision. It is a vision that is already adopted by the heads of states of the African Union, all over, two years ago. It defines the broad principles for development of mining in the African continent—obviously recognizing that African countries are not homogeneous and that countries have their own sovereign laws. But it seeks to harmonize development of mining and provides the guiding principles for a new kind of partner we seek in Africa for development. So when we are talking to the investment community, we are really inviting what we call development pacts—which marks a shift, a little bit, from the traditional investments for mining in the African continent to a new kind of mine in Africa, a mine that recognizes that the returns are great. Of course business must have returns, but host countries must also have a fair share of returns, and we believe it’s a possible kind of partnership. There are vast opportunities in South Africa, in the continent currently. In South Africa, we have 63 minerals from which to choose, we have a stable political environment and we are encouraged by the World Economic Forum Competitiveness Index that evaluates several pillars of competitiveness and ranks the country quite favourably—particularly in respect of protection of investments, the regulations that govern the securities exchange, the soundness of the boards of corporations, and a whole range of other pillars in which South Africa really features quite eminently. This reassures us, as South Africans, that we have MOSA MABUZA:

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SOUTH AFRICA SPECIAL

We’re talking about investment and how stable investment will be based on these policies that have been introduced. Tell us about the community where the development is happening—what measures have you taken to improve the impact and more positive outcomes in those regions where mining is taking place going forward?

Communities... Let me go back and say traditionally we’re mining two places, you know, mining generally takes place in these remote areas. These communities are generally poor communities, and you then find that mining brings about development. In fact, that development in the past would only be limited to the surroundings of the mine and infrastructure directed only to support the functioning of the mine at that location. So, nothing personifies enclave development as what happened around mining in the past, because this development was surrounded by abject poverty, and hopelessness. It is our argument that that model is unsustainable, because you need to have at least—communities have a sense of pride in their new neighbour in their community, called the mine, or mining development, and to that you pay. In fact, South Africa introduced what we call the trailblazer social licence to operate, which is not the same thing as corporate social responsibility, but it is exactly that, the social license to operate. What it is, it’s a requirement for a miner to invest in a way in community development programs. As we are mending now the law, we have learned that in the past 10 years that development has been fragmented because every miner who’s operating in the same environment would have their own community development programs, and that fragmentation thins out the impact. In order to optimize the impact, we have created a legislative environment that centralizes, that enables companies operating in the same area to contribute to community development at a district municipality level. That way, you’re not only pulling resources 32

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together, you’re also able to maximize the development impact, and have those communities see tangible results of mining. They can become true defenders of their investors in that development. Have you got an example of a company that’s doing just that?

We already have Canadian companies. In fact on Monday, Macquarie launched a fund—I think Macquarie is a Canadian company—they launched a fund for development in mining. And so that’s the kind of relationship that we already have with Canadian mining communities.

In fact, this was a proposal we received So you play a very central role from the from a company operating in the Eastern governance perspective. It’s not an openLimb of the Bushveld Igneous Complex. ended arrangement. I mean, we saw in That is where the platinum is mined. the workshop this morning, very clear They got together and looked at their delineation of the steps. You’re looking own expenditures and they said look, if at a streamline of that, it seems to me. we pool together—it’s a dry area, there’s Streamlining of those processes is very limited water and they need the water. important to us, because we learn as The people living in those communities we’re moving along, we’re improving in also need the water. those areas but we are not as strong as So if they pool together we’d like to be. One of the their resources for comweaknesses we have had munity development, with the current legislation In order they are then able to is that fragmented license to optimize partner with government, and process—water use the impact, construct a dam, and part licence. You would know we have created of the conditions that this, as a Canadian. Canaa legislative they’re putting together dian investors understand environment is that we will have access this very well. that centralizes, to water because these are that enables the volumes of water we If you look five years out, companies require. The difference? what do you envision for operating in The communities can have the country? I’m curious the same area access too. And this is a of your assessment and to contribute program that is already at what you envision for the to community an advanced stage, and we future mining development development think it’s going to demin Africa. at a district onstrate just how great It’s an exciting future we’re municipality an impact of community looking at. We’re looking level. development—without at a better understanding spending more money, just of our intentions, a better by pooling those resources appreciation and acknowltogether. edgement of the regulatory framework, and perhaps a more objective comparative What kinds of things would you suggest regulatory analysis that will project South to a Canadian enterprise that is Africa for what it really is. contemplating coming to South Africa This will take the next couple of years next year to develop? Is there some and then, I think that in the next five years, a framework that you could share, very top good indicator—and this is for the Canadian level—what would attract them? mining investor community—I’m hoping Well, the one thing I would say which that we would have doubled the current levwould establish interest is that we have els of investment in mining from Canadian several trillion dollars’ worth of resources, investors, purely because they have begun under the land, and this excludes any to look at South Africa in its entirety and energy commodities. Now that’s a potential looked at the real potential that it has and that requires partnerships, Canadian or any offers. And that there is no better place, quite other partner, who’s willing to come with frankly, right now for investment in mineral the development objective in South Africa. development than South Africa. RA

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done some things correctly and we plead with the investment community to look at us in their evaluation of investing in South Africa, and not rely on the headlines.

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Canada’s Team Spirit

Interview with Pierre Boivin, Partner, McCarthy Tétrault By The Rising Africa

cCarthy Tétrault is a Canadian law firm that offers a full range of services to an international clientele. In addition to his role as Partner at the firm, Pierre Boivin is a board member of the Canadian Council on Africa and is the national Co-leader of McCarthy Tétrault’s Africa initiative. He specializes in mergers, acquisitions, private equity and negotiation of business transactions. Thank you for taking time out of your busy schedule to talk about your organization and your experience in Africa. If you’d like to take a moment or two and just give us a little context and background, that would be really helpful. THE RISING AFRICA:

Certainly. I’m a partner at McCarthy Tétrault, which is a prominent Canadian law firm with about 600 lawyers. We have offices in Vancouver, Calgary, Toronto, Montreal, Quebec City and London, England. We have been involved in doing business in Africa for a long time in various areas, such as mining, energy and telecommunications. Almost three years ago, we decided to put even more emphasis on our practice in Africa and we created an Africa initiative within the firm to structure our activities and put more focus on our involvement. I’ve had the privilege to act as the national Co-leader of the Africa initiative with one of my colleagues in the London office. Former Quebec Premier Jean Charest also joined our firm in early 2013 and has notably contributed his impressive African network to the services we offer. We have been therefore accentuating our involvement in Africa at all levels. Last year, for example, I spent about four months in Africa on various matters and events. There are great opportunities for my firm but this is also true for Canadian business in general. Africa is definitely a place to be with its amazing economic growth perspectives. Also, Canada is so well respected and has such a great international reputation that we often underestimate its impact. It’s just a great international calling card. On the legal side, we are familiar with working in both civil law and common law, which are the two principal legal systems in Africa. From a business perspective, our expertise also matches up perfectly with core development areas in Africa such as natural resources, energy, infrastructures and telecommunications. Canadian businesses have expertise that is recognized internationally and that enables us to be top performers in Africa. PIERRE BOIVIN:

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(From left to right:) Christian Paradis, Jean Charest and Pierre Boivin

Q&A

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We’re very welcome here. We have great staff at the embassies that can support you, and I encourage anybody who wants to look into this to contact the Canadian Council on Africa.

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The Canada Pavilion at Mining Indaba 2014

At first glance, it might sound a little intimidating to consider the perspective of doing business in Africa. But actually, we have a lot going for us. Over and above our expertise, Africans are fond of Canadians and are very welcoming. We also have great staff at the Canadian embassies that can provide valuable support. The number of Canadian companies doing business in Africa is considerable and organizations can benefit from each other’s experiences. I encourage businessmen who want to look into this opportunity to contact the Canadian Council on Africa, which is the organization that regroups Canadian companies that are active in Africa. What are organizations going to face in terms of culture, and the different frameworks you’re entering into to work in these countries in Africa?

Well, it’s both obviously challenging, and fascinating. Most people like to travel and to find out about new places and cultures, and it’s basically the same angle from a business perspective. First you have to do your homework, notably from a market perspective and you also need to find out about the country, its business culture and its customs. At the same time, business is business everywhere in the world, and it all starts with having a good product. 36

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Should organizations anticipate a long lead time to get a deal underway, or what kind of investment they’re going to have to make to get on the ground and up and running?

That’s a very good question. Actually, as you might expect, from a strictly North American efficiency perspective, business dealings are a little slower in Africa. You have to provide for a little more time. What you can do in Canada with all the technology that you have at your fingertips and our North American way of doing business may be challenged at times. Jokingly, an African once mentioned to me: “You have watches, we have time.” Generally, you have to take into consideration that African culture is very much still a culture based on building relationships. Therefore, if your are considering doing business in Africa, you must be willing to invest some face time there and be willing to adapt. Relationships.

Yes, they may at times forego what we would consider as pure efficiency to invest on relationships. There’s actually merit to that, because they attach importance to investing time in building trust in their business relationships as they consider it building on solid ground.

Would you share a little bit of perspective on your involvement in Africa?

I should start by mentioning that my involvement implies three different roles. My principal role obviously consists of being a partner of my firm and developing business in Africa. I’m also a member of the Board of Directors of the Canadian Council on Africa, which involves volunteer work and a broader perspective. Finally, I’m also Vice-President AfricaDistrict for the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), which is also volunteer work. For example, at CIM we are currently working at developing branches of CIM in some African countries to notably help them reach CIM objectives such as adopting state-of-the-art practices and improving safety for workers. I would conclude that my involvement in Africa has been rewarding both professionally and personally. It sounds like a real pool of stakeholders that are fundamentally working closely together to launch into building the trade.

Absolutely, there are numerous stakeholders involved and when you participate, you have the impression of being part of a Team Canada. Actually, on the international scene, people help each other out and there’s definitely a team perspective approach.

What would you say about your experience down here in South Africa? How would you sum it all up in terms of all the different activities you’ve been involved in, and events and introductions and so on?

First, Mining Indaba is an outstanding event for anyone in the mining industry who wishes to get involved in Africa. From a Canadian perspective, there are numerous Canadian companies that are present as you can see from the level of activity at the Canadian Pavilion. The presence of Minister Paradis is also a highlight. The stakeholders with whom I have spoken are very pleased with their participation at Indaba. People in some respects have to overcome some of the stereotypes. This is the big challenge Africa has, just to try to empower people to not watch CNN and judge.

You are right that there are stereotypes about Africa. There are 54 countries and

a population of over a billion and unfortunately some people perceive Africa as if it were a country rather than a continent. Obviously there are some countries that are going through difficult times, but on the other hand, there are a significant amount of African countries rated among the fastest growing economies in the world. Of the 54 countries, you can easily choose which countries you wish to be involved in taking into consideration your business objectives and strengths. I believe that over the next decades, Africa is going to be the key international investment playground. It’s actually a place to be considered for business development right now. For example, if your business evolves in a mature market and you wish to increase significantly your revenues, you should consider Africa as an option. What are the obvious verticals or lines of business?

As you are interviewing me at Indaba, mining is certainly an obvious attrac-

tive line of business. For Canadians, the mining industry is one of our strengths and that is applicable to the whole mining industry and the services that relate to it. Among others, the oil and gas, energy, infrastructure, telecommunications and agricultural sectors are also important areas of development in many African countries and also one where our expertise is internationally recognized. If you have the right product, the opportunities are endless. The Canadian Council on Africa has become a good partner in introducing organizations to the market here.

Absolutely, as is the case for numerous countries in Africa. CCAfrica is the organization that represents Canadian businesses that are involved in Africa. There is definitely merit in teaming up with people who have the same interests as you do. There is a camaraderie that arises out of sharing experiences and helping one another. CCAfrica is about being part of a team. RA

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In the upcoming edition of

RISING AFRICA

THE

The Infrastructure Edition 38

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We take a closer look at Africa’s growing infrastructure deficit and its effect on the nation’s productivity, social and economic development, and competitiveness in world markets: • Africa’s infrastructure funding gap is approximately US$35 billion per year. • The largest infrastructure deficit exists in the energy sector, which delivers only a fraction of the power service found in other developing countries. Poor infrastructure constrains business, reducing productivity by 40 percent for many African countries.

Canadian industry is uniquely positioned to address this deficit with our expertise in energy and infrastructure development—and forward-thinking companies are seizing the opportunities. Learn how these trailblazers are forging partnerships with their African counterparts to produce innovative solutions.

SPECIAL SECTION! Spotlight on ETHIOPIA

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LEADERSHIP

Create. Enhance. Sustain. AECOM leverages ethical culture, global reach to make Africa, and the world, a better place By Elizabeth Bannerman

Boussiaba dam in Algeria

he centrepiece of trust is treating ethics as a holistic value to the organization, states AECOM Chairman and Chief Executive Officer, John M. Dionisio, in the Q2 2012 issue of Ethisphere. Expounding on this, he says there are “three ways that the team at AECOM is going beyond the minimum to make ethics and compliance a centrepiece in our trust-building efforts.” At AECOM the approach is straightforward: treat ethics and integrity as part of a holistic organizational value system; institute strong governance enabled through visible leadership; and elevate the organizational consciousness to act with integrity. AECOM came to life 24 years ago, when its employees shared a dream to create an industry-leading firm dedicated to “making the world a better place.” While the company was officially founded via an employee buyout from its former parent during 1990, its legacy operations have more than 100 years of distinguished experience. Today the firm is listed on the Fortune 500

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and employs approximately 45,000 talented architects, engineers, designers, planners, scientists, and management professionals globally; the company now serves public and private clients in over 150 countries worldwide. AECOM is listed on the New York Stock Exchange and annual revenues sat at US$8.1 billion as of December 31, 2013. In an interview, AECOM executives expressed their pride in three particular areas with regard to their ability to carry out projects that benefit clients and communities across Africa: a great track record with the World Bank and several other African banks; the ability to serve African clients, including those in French-speaking countries; and a strong history and presence in South Africa, which helps leverage its capabilities throughout the continent. Furthermore, the firm has the knowledge and built-up expertise in Africa to complete projects safely and expediently, as its people understand Africa’s infrastructure needs and challenges, and work to link countries by har-

monizing technology and infrastructure with the view of growing the continent’s emerging economies toward the goal of financial independence, for which growth in Mining and Power remain essential ingredients. To this end, AECOM’s goal is to help fulfill the need for major commodities, energy, infrastructure and environmental stewardship while supporting local development. AECOM has the capability of working on a project from creation to completion and beyond. Some of AECOM’s major projects in Africa include: a preliminary feasibility study for the development of a bauxite mine in Guinea; the detailed design of an expanded port material handling facility for an iron ore mine in Mauritania; and the rail infrastructure detailed engineering and environmental support services for the Simandou iron ore project in Guinea and Transnet in South Africa. Also, AECOM is currently building 67 schools in Liberia, which will ensure that this country has the education infrastructure its citizens need. AECOM has also developed a rural electrification plan in Ethiopia to supply 36 villages with reliable and affordable electricity, and worked on a bankable feasibility site study for the Grand Inga hydroelectric site, which included the development of over 40,000 MW installed capacity in the Democratic Republic of Congo. AECOM’s website (AECOM.com) provides information on its projects, with data and photos that show how the company can seize the opportunities necessary to assist in local community development, as well as nationally, due to AECOM’s blend of global reach, local knowledge, innovation and technical excellence. AECOM is able to fulfill its commitment to service and excellence, enabling the firm to help make Africa, and the world, a better place. RA

Program management for the construction of 67 schools in Liberia

Environmental Social Impact Assessment, Bauxite Mine, Guinea

Electrical interconnection between Kenya and Tanzania

Port and Rail Material Handling Facility, Mauritania

Port and Rail Material Handling Facility, Iron Ore Mine, Mauritania

ALL PHOTOS: AECOM

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CCAfrica Members List CORPORATE MEMBERS

Affutjob African Gold Group Afrique Expansion Magazine AAgriteam Canada Alberta Ministry of International and Intergovernmental Relations Anyway Solid Environmental Solutions Ltd. Association of Canadian Community Colleges (ACCC) Association of Universities and Colleges of Canada (AUCC) Atlas Partenaires Aviation Zenith Inc. Barrick Gold Corporation Black Business Initiative BlackBerry Ltd. Bombardier Inc. Broccolini Construction Inc. CANAC International Inc. Canadian and African Business Women’s Alliance (CAABWA) Canadian Bank Note Company, Ltd. Carleton University Cégep de Trois-Rivières Centre de formation professionnelle Val-d’Or CIMA+ International Inc. Consortium for International Development in Education (CIDE) Consultation Contacts Monde Cordiant Cowater International Inc. CPCS CRC Sogema Inc. DAM Développement International Dessau Développement international Desjardins Dundee Corporation E. T. Jackson & Associates Ltd. Ecole nationale d’administration publique Éditions L’artichaut inc. Education internationale Emerging Markets Financial Group EM-ONE Energy Solutions Excel Employment International Fasken Martineau Fraser Milner Casgrain LLP Freebalance GENIVAR Groupe Belfontaine IAMGOLD Corporation IMW Industries Ltd. Innovision Jainji International Inc. JR International Trade

Kestrel Capital Management Corp. La Cité collégiale Lussier Centre du camion M & I Heat Transfer Products Ltd. McAlister Consulting Corp. McCarthy Tétrault Mercy Ships MGS Energy Group Ministère du Développement économique du Québec Nexen Inc. Oasis Voyages PricewaterhouseCoopers RA International RemedX Remediation Services Inc. Sama Resources Inc. SDV Canada SEMAFO Sherritt International Corporation SNC-Lavalin STRATEGEUM TFO Canada The Udemba Group Tronnes Surveys TruQuest Global University of Ottawa Wayne Dunn & Associates Windiga Energy Inc. ASSOCIATE MEMBERS

Alberta International, Intergovernmental and Aboriginal Relations Canadian Commercial Corporation Department of Foreign Affairs and International Trade Canada Export Development Canada Ministry of Economic Development, Innovation and Export Trade – Quebec Natural Resources Canada New Brunswick Department of Intergovernmental Affairs Ontario Ministry of Economic Development and Trade (MEDT)

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Canadian Council on Africa Conseil Canadien pour l’Afrique

CHAIRMAN OF THE BOARD | CCAFRICA

Benoit La Salle PRESIDENT AND CEO | CCAFRICA

Jean J. Gauthier FOUNDER AND DIRECTOR | CCAFRICA

Nola Kianza VICE-PRESIDENT, BUSINESS DEVELOPMENT AND MEMBER RELATIONS | CCAFRICA

Chris Kianza VICE-PRESIDENT, ATLANTIC PROVINCES | CCAFRICA

Gregory Nazaire VICE-PRESIDENT, WESTERN CANADA | CCAFRICA

Frank Kense DIRECTOR OF INTERNATIONAL DEVELOPMENT | CCAFRICA

Léonie Perron PROJECT MANAGEMENT | CCAFRICA

Camelia Bucur

CREATE. ENHANCE. SUSTAIN.

AFRICAN MEMBERS

Business Club Algero-Canadien (BCAC) Canada Business Association- Ghana Evergreen Supermarkets Fédération des Chambres de Commerce de Madagascar Fédération des Entreprises du Congo Mali Chamber of Commerce Nigerian Economic Summit Group Rwanda Development Board Tanzania Chamber of Commerce, Industry & Agriculture

With a strong presence in Africa for nearly half a century, AECOM is committed to improving the continent’s built, natural and social environments.

www.aecom.com

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CCAfrica Board of Directors CHAIRMAN OF THE BOARD OF DIRECTORS

VICE-CHAIR OF THE BOARD OF DIRECTORS

Benoit La Salle President and CEO, Windiga Energy Inc. Canada

Marie-Josée Fortin Director, Association of Canadian Community Colleges (ACCC)

VICE-CHAIR OF THE BOARD OF DIRECTORS / MEMBER OF THE ACTION PLAN COMMITTEE

EXECUTIVE COMMITTEE / MEMBER OF THE ACTION PLAN COMMITTEE

Peter Kieran President, CPCS

Michael Wyse President, Black Business Initiative

EXECUTIVE COMMITTEE

David Ireland Director, International Business Development, Canadian Bank Note Company, Ltd.

EXECUTIVE COMMITTEE

David Baron President and CEO, Cowater International Inc.

John Treleaven Vice-Chairman, Mercy Ships

Sam Boutziouvis VP, Government Relations and Multilateral Institutions, SNC-Lavalin

MEMBER OF THE ACTION PLAN COMMITTEE / EXECUTIVE COMMITTEE

PRESIDENT OF GOVERNMENTAL RELATIONS COMMITTEE / EXECUTIVE COMMITTEE

PRESIDENT OF THE ACTION PLAN COMMITTEE / EXECUTIVE COMMITTEE

Pierre Boivin Partner, McCarthy Tétrault

Simon Lafrance Managing Partner, STRATEGEUM

PRESIDENT AND CEO

DIRECTOR

Jean J. Gauthier President and CEO, CCAfrica

Michel Cote President, CRC Sogema

DIRECTOR

Matt Fisher Vice-President, AnyWay Solid Environmental Solutions

Alanna Heath Director of Government Affairs, Barrick Gold

Charles Field-Marsham Chief Executive Officer, Kestrel Capital

Mark Sitter Director, Corporate Affairs and Sustainability, Sherritt International Corporation

FOUNDER AND DIRECTOR

Nola Kianza President and CEO, Trans Africa Resource Corp.

DIRECTOR

Denis Belisle Chairman, Dessau

Yvon Bernier Vice-President, Développement international Desjardins

DIRECTOR

Amina Gerba President, Afrique Expansion

DIRECTOR DIRECTOR

Denis Painchaud Director, International Governmental Relations, Nexen

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Wayne Dunn Professor in CSR, McGill University; Managing Director, Wayne Dunn & Associates

MARCH 2014

DIRECTOR

David Gamble Vice-President, Business Development, IMW Industries

DIRECTOR

Andrew McAlister McAlister Consulting Corp.

In an emergency, we’re there to help. Barrick Gold has Emergency Response Teams at our mine sites all over the world. So when disaster strikes, our people are often on the move. In just the last few years Barrick’s Emergency Response Teams have been on the ground following devastating earthquakes in Chile and Haiti, a plane crash in Papua New Guinea, and many more situations where expert help is needed quickly. Barrick’s objective is every person going home safe and healthy every day. Trained in everything from fire fighting to first aid, our Emergency Response Teams are on standby, no matter when they might be needed.

www.barrick.com www.barrickresponsibility.com www.barrickbeyondborders.com