d271 2.5, easy
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Questions and Answers

What is one of Africa's untapped resources that the text mentions?

  • Oil reserves
  • Arable land (correct)
  • Coal mines
  • Gold mines
  • What does Babban Gona offer to smallholder farmers?

  • Agricultural inputs only
  • Development, training, credit, agricultural inputs, and marketing support (correct)
  • Development and training only
  • Marketing support only
  • What is driving the increasing demand for certain minerals like cobalt and phosphates in Africa?

  • Decreasing population in Africa
  • Lack of interest from mining companies
  • The electric vehicle industry and Africa's green revolution (correct)
  • Declining global trends
  • 'Social license to operate' is relevant to which sector according to the text?

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    Study Notes

    • Africa is a continent rich in unexplored, high-potential regions for oil-and-gas, as well as mineral resources
    • Contains the world’s largest reserves of various minerals, including diamonds, manganese, phosphate, gold, and more
    • Mining has not been a consistent engine of economic development, but there is potential for entrepreneurial companies and local champions
    • Africa ranks among the top ten sources for many major minerals, delivering great value for exploration investment
    • Only one of the five largest global mining companies has significant production in Africa due to political and economic risks and infrastructure challenges
    • Demand for certain minerals, such as cobalt and phosphates, is increasing due to global trends like the electric vehicle industry and Africa's green revolution
    • Mining remains a critically important sector in African economies, accounting for 10% of the continent's GDP and FDI inflows
    • Mining companies can improve their operating environment by investing in local communities and earning a "social license to operate"
    • Companies like Randgold Resources have successfully engaged in community development initiatives to mitigate risks and maintain operations during national unrest.

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