CAF and Ministry of Mines and Energy sign agreement for strengthening small- and medium-scale mining companies

(Bogotá, September 24, 2008). Corporación Andina de Fomento (CAF) and the Ministry of Mines and Energy signed a Technical Cooperation agreement, the purpose of which is to improve the productivity and competitiveness of Colombia’s mining sector by drawing up and implementing a public-private strategy aimed at promoting the enhancement of the business side of mining SMEs and management training and access to sources of financing for businessmen engaged in mining.

Under this agreement, a diagnosis will be carried out of small and medium mining companies and sector benchmarks will be established in a group of countries that have been successful in developing mining, the idea being to design an action plan for the country that incorporates the best international practices, with emphasis on financing strategies.

Bearing in mind that, in Colombia, mining GDP has increased its share of the economy in recent years, 2.6% of GDP on average, and that 58% of mining rights for exploring and exploiting different minerals belong to small and medium mining companies, this Technical Cooperation will support SMEs that form part of the industry.

It is worth noting that the mines and energy sector has been identified by the Colombian Government as one of the fundamental sectors for achieving sustainable growth, reducing poverty, and promoting equity. Vision Colombia II Centennial: 2019 proposes making the Colombian mining industry one of the most important on the continent and significantly increasing its share in the domestic economy as a medium-term objective for the sector.

Through this agreement, CAF continues to support sectors with a high growth potential that contribute to the productive transformation of the region and support the adoption of efficient, transparent, public policies that generate value and jobs.