00:02Turkish Airlines presents Business Africa
00:11Hello and welcome to this new edition of Business Africa.
00:15I'm Yasmina Elabase-Ray. Here are the top stories.
00:19The gold rush in West Africa is reshaping mining strategies.
00:23Some countries are seeking to attract more investors while others are tightening regulations
00:27to retain a greater share of their revenue.
00:32In Cote d'Ivoire, rising fuel prices are affecting the daily lives of Abidjan residents.
00:38Consumers and businesses are already feeling the impact of the increase.
00:44In Kenya, where SMEs struggle to access finance,
00:48a metal pad manufacturer has found ways to secure the resources needed to accelerate its growth.
00:57Driven by geopolitical tensions, the global gold market is reaching record levels.
01:03In West Africa, this surge is intensifying competition between countries seeking to attract investment,
01:09those tightening their control over the sector.
01:12Here's the report.
01:14Gold has never been more strategic.
01:18Driven by geopolitical tensions and the search for safe haven assets,
01:22global demand exceeded 1,200 tonnes in the first quarter of 2026,
01:27with the market up 74% year on year.
01:32This surge is reshaping the investment landscape in West Africa,
01:36as mining companies prioritize countries offering predictable taxation,
01:41stable regulations and suitable infrastructure.
01:44Cote d'Ivoire is benefiting from this trend.
01:47Its Kone Gold project is expected to produce more than 300,000 ounces a year and create 3,000 jobs.
01:56Mauritania and Guinea are also looking to attract fresh investment.
02:01Mali, Burkina Faso and Ghana, however, are tightening control over the sector through higher taxes,
02:08increased state participation and revised contracts.
02:11Their aim is to retain a larger share of revenues, even at the risk of driving some investors away.
02:18Two strategies are therefore emerging, but the challenge remains the same,
02:23turning gold wealth into jobs, infrastructure and sustainable development,
02:28so that local communities receive a greater share of the benefits.
02:33We're joined by Mr. Felix Zunin, a specialist in financial governance in the mining sector.
02:39Mr. Zunin, welcome.
02:40The countries seeking to regain control over their gold risk driving investors away,
02:45where should the balance be struck between sovereignty and attractiveness?
02:51Generally speaking, investors will not flee simply because a government demands higher taxation,
02:55greater national participation or more local content.
02:58What most often drives them away is unpredictability,
03:02the retroactive application of new rules or armed conflict that prevent them from properly operating their mines.
03:07It's important to understand that a mining investor can commit $1 billion over a period of around 20 years.
03:13They may be willing to pay more, but they cannot accept having the rules change midway through the project.
03:19Wanting to exercise greater control over one's core resources and strengthen national sovereignty is therefore not a bad thing in
03:25itself,
03:26provided it is done appropriately.
03:28Take CĂ´te d'Ivoire, for example.
03:29The country has significantly tightened its conditions and requirements without driving investors away.
03:34On the contrary, it was a country on the continent that attracted the most exploration capital last year with $186
03:41million.
03:42That represents 13% of all investment in exploration in Africa in 2025, even though the rules have been tightened.
03:51With gold prices rising, is the balance of power shifting between government and mining companies?
04:00Yes, unquestionably. We are witnessing a shift in the balance of power.
04:03It is not complete because this balance has long been largely in favor of mining companies, but today it is
04:09increasingly shifting in favor of government.
04:12This can be explained quite simply by the current price of gold, with an ounce trading at more than $4
04:17,000 and production costs ranging between $1,500 to $1,900.
04:21Profit margins have become so substantial that no government can politically afford not to renegotiate.
04:27Today, governments have the means to do so.
04:30In 2025, for example, Mali recorded a 25% decline in gold production compared with 2024.
04:37Despite this, the country generated significantly more revenue in 2025 than it did in the previous year.
04:42However, it is important to remember that mining companies still control the capital, technology and expertise.
04:48The balance of power is therefore becoming much more even, but it is not one-sided.
04:56Ultimately, can this gold rush genuinely stimulate African economies and improve living conditions for local communities?
05:05It can only do so if mining revenues are transformed into economic capacity.
05:10The fundamental question is whether the exploitation of natural resources can generate shared prosperity and contribute to broader development.
05:17In Guinea, for example, gold production amounted to $7 billion in 2025.
05:23Yet, according to the Guinean Minister of Mines, only 1% of this value remains in the country's economy.
05:28In Mali, extractive industries, and gold in particular, account for as much as 79% of exports, but generates only
05:371.8% of employment.
05:39These disparities show that producing a great deal does not necessarily translate into broad-based economic benefits.
05:45Gold can boost exports, increase foreign exchange reserves, and raise government revenues.
05:50However, it does not automatically create more jobs or reduce poverty.
05:56The key question, therefore, is how can a mechanism be put in place to channel the benefits of mining production
06:02into the real economy?
06:03This begins with effective and better design taxation.
06:09But beyond collecting revenues, there must also be transparency in public spending.
06:14Collecting revenues is one thing. Redistributing and reinvesting them effectively is another.
06:20That is the heart of the problem.
06:24It is also necessary to support local producers and suppliers, integrate them into the value chain, train workers, and further
06:32formalize employment.
06:37Finally, genuine redistribution must benefit mining regions. This is how revenues generated by mining production can flow into the real
06:45economy.
06:48Well, thank you for your time.
06:51It was my pleasure.
06:54Since August 1, petrol and diesel have become more expensive in CĂ´te d'Ivoire.
07:00Rising fuel prices are affecting consumers and placing many businesses under pressure.
07:05In Abidjan, concern is spreading across several sectors of the economy.
07:10Since 1st August 2026, fuel prices have risen in CĂ´te d'Ivoire.
07:15In Abidjan, petrol now costs 905 CFA francs, up from 875, while diesel has increased from 700 to 725 CFA
07:27francs.
07:28Ride hailing drivers are among the first to feel the impact as higher fuel costs squeeze their earnings.
07:34In Binjaville, a restaurant owner says customers have declined after she doubled delivery charges to cover rising fuel expenses.
07:46Delivery costs are a major problem. Customers are now paying as much for delivery as for their food.
07:56Since August 1st, the impact has been enormous, turning an already difficult situation into a disaster.
08:05The government had kept fuel prices stable, but the prolonged Strait of Hormuz conflict has pushed it to its limits,
08:12according to an economist.
08:14Crude oil prices have risen significantly. If I remember correctly, the price of a barrel went from $71 to $144
08:23between February and April 2026, before easing slightly.
08:28So, efforts were made to keep prices stable, but the government eventually reached its limit.
08:32The cost has risen to nearly 200 billion CFA francs.
08:37I think the state has now decided to pass on the increase in global crude oil prices to domestic prices,
08:43that is, prices within Cote d'Ivoire.
08:45The government is now asking the population to bear the cost of the increase.
08:49Further repercussions are expected across the energy, agro-industrial and logistics sectors.
08:57In Kenya, 7 out of 10 SMEs struggle to secure financing.
09:02720 Holdings, which locally manufactures metal parts, stands out as a success story.
09:07The company secured the funding needed to grow and now employs more than 60 people.
09:12Here is our report.
09:15In Kenya, around 7 out of 10 SMEs struggle to finance their operations.
09:22720 Holdings, a company that locally manufactures a range of metal accessories, has nevertheless managed to secure the funding it
09:30needed to expand.
09:34We got our own savings.
09:35It was around $30,000.
09:37That's how we started.
09:38But at the same time, we borrowed money from family and friends.
09:43Then, from there, we got a grant from the Tony Elumelu Foundation.
09:49Thanks to different sources of funding, the company was able to expand and accelerate its growth.
09:56Financial institutions often view SMEs as high-risk borrowers.
10:00But the right policies can unlock financing for them.
10:05Can we get someone to de-risk this?
10:08And already there are initiatives like the Africa Credit Guarantee Fund, which is giving financing to banks for onward lending
10:16to SMEs.
10:17Through its dedicated unit for manufacturing SMEs, the Kenya Association of Manufacturers bring together different stakeholders to help these businesses
10:26gain access to financing.
10:27We are engaging government in terms of changing the policy space.
10:32And not only government, we are engaging other entities in relation to finances, particularly interest rates, are more favorable to
10:44businesses.
10:45And our push has been to have a single-digit interest rate.
10:50SMEs have enormous economic potential.
10:53Addressing key growth drivers can strengthen the economy's resilience and stability.
11:01This is all for this edition.
11:05Follow us on our digital platforms and at africanews.com.
11:16Business Africa was presented by Turkish Airlines.
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