Mining investments a lot safer in Mozambique, Burkina Faso and PNG
Resource-rich developing nations, such as Mozambique, Senegal, Burkina Faso and Papua New Guinea have advanced significantly in combatting corruption over the last four years, which is turning them into more desirable destinations for the extractive industry, said Wednesday UK-based risk consultancy Maplecroft.
In its 2013 Corruption Risk Index (CRI), the firm said coal and natural gas rich Mozambique is the nation that has improved the most, since approving a new anti-corruption law last year. The country moved from the 51st position and ‘extreme risk’ category to the 71st place, ‘high risk’ nomination.
In the index, which evaluates 197 countries on the reported prevalence and persistence of corruption in the public and private sectors, ranking first means being the most corrupted and risky destination. CRI also considers the efficiency of governments in tackling fraud and bribery.
Other notable good performers include Senegal, which rose from 34th to 48th place; as well as Burkina Faso (54th) and gold rich PNG (60th), which moved 14 and 18 places, up the index respectively.
Maplecroft said diamond powerhouse Botswana (154th) remains the African economy with the strongest governance, a decisive factor in the more equitable contribution of mineral wealth to development than has been witnessed in other parts of the continent.
Mineral and hydrocarbon rich economies are often associated with the so-called “resource curse,” which means that widespread corruption and economic mismanagement of natural resources ends up hindering economic growth and development.
However, this year results showed some of the greatest strides in mining-based emerging nations.
CRI, says Maplecroft, aims to help companies identify the countries where the risk of association with corruption is highest.
Image: Everett Collection/Shutterstock.com