MINING IN THE SOUTHERN AFRICA REGION

Dependence on South Africa for these minerals lessens the ability of the West to use economic pressure to effect a change in South Africa"s racial policies. This dependence can be lessened by exploitation of the rich stores of strategic minerals in the other countries of southern Africa: Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zambia, and Zimbabwe. Because of their underdeveloped economies, however, these countries do not attract private investments in the mining sector. The present study, an annex to an AID report to Congress on development needs and opportunities in southern Africa, analyzes the mining sector in the eight countries listed above and offers recommendations for U.S. assistance. The sector is analyzed in terms of its economic significance; mineral development, including constraints and future prospects; social and employment impact; and government policies towards foreign investment. Recommendations for foreign assistance are country-specific and focus on reduction of the information gap; support of specialized training; technical assistance, especially to geological survey departments; promotion of U.S. mineral searches; and balance of payments support. Recommended for U.S. regional assistance are establishment of schools of metallurgy, mining engineering, mining economies, and geology; issuance of mining sector reports by the U.S. Embassy; sponsorship of meetings of mining officials from the region; broadening the Overseas Private Investment Corporation"s investment and loan guarantee schemes; purchase of U.S. stockpile requirements (e.g., of copper from Zambia); and a price stabilization study of these stockpiles.