RCA’s Mission
Our mission is to facilitate debt-free economic development in Africa by connecting African countries directly to international capital markets and helping them invest directly in their own economic development using only the natural resource as the financing tool or capital, hence the name Resources Capital Africa, which emphasises our underlying dictum for Africa’s new economic strategy in this millennium: ‘your resource is your capital’.
Our operating philosophy is to domesticate investment domicillium in Africa so that both the income and the profits from natural resource based production will be appropriated by Africa for reinvestment in economic development; a radical game changer that is set to put Africa at par with the developed world in mainstreaming local direct investment (LDI) as the driver of economic development, growth and prosperity.
Who we are
We are innovative development strategists with an objective to encourage, facilitate and create new trade and investment partnerships between Africa and the developed world that are truly transformational and not enslaving for Africa.
Our approach promotes mutually facilitatory North-South collaboration in trade and investment reciprocity that delivers growth and prosperity simultaneously both to Africa’s populations and to its more developed northern partners in relationships where; there is no junior or senior partner; there is no giver or receiver of aid; no party is taking unfair advantage of the other; each party gains hugely from facilitating the success of the other party; neither party ends up in servile indebtedness to the other; there is no loser and everyone’s a winner!
The Principle behind our model
The RCA model is anchored on the principle that trade and investment partnerships create the best win-win outcomes for both parties when:
- Both parties equally need and value what each brings to the table;
- The parties’ objectives in the partnership are complimentary; and
- The relationship is mutually symbiotic: in order to thrive, each party needs what the other has to offer and therefore both parties can hugely benefit from facilitating each other’s success.
Africa’s objectives now:
- To attract investment, technology and knowhow for unlocking the value of its vast natural wealth resources of land and minerals.
- To finance economic development and growth from income generated by both domestic economic activities and international trade of its economic production.
- To create jobs for its people.
- To ensure that all new wealth that is created from Africa’s human and natural wealth resources stays in Africa and is reinvested in growth and prosperity of Africa’s people.
The North’s objectives now:
- To secure reliable sources of raw material to power its well-developed manufacturing industry.
- To create export markets for its technology, knowhow, manufactured goods and services, and for its well-developed financial sector.
- To create and sustain jobs for its people.
- To finance economic development, growth and prosperity for its people from income generated by both domestic and international trade of its economic production.
These North and South objectives are mutually sustaining, as what the South needs for its success can be supplied by the North and vice versa. So, by combining their comparative advantages the two sides can facilitate each other in achieving their economic objectives through collaborative investment and trade partnerships that will enable both to prosper. With the South’s resources driving the world’s economy, our approach views North and South like Siamese twins sharing the same heart, and that heart is in Africa and the South.
This is a new symbiotic form of economic collaboration in which each party seeks and facilitates the survival and success of the other to assure its own survival, growth and prosperity.
RCA’s collaborative platform and interface facilitates North-South trade and investment reciprocity that is specifically designed to achieve exactly that.
The Resources Capital Africa Collaborative Platform
The RCA collaborative platform is a business-oriented interface for solving Africa’s investment problems in the natural resources sector with the object to generate rapid economic development using a new model of North-South collaboration that facilitates production activities on both sides through which all collaborating parties can achieve their growth objectives.
To achieve its mission, RCA aligns and amalgamates objectives of the collaborating parties: governments, export promotion agencies, international banks and contractors in a mutually assistive project-focused partnership that delivers concrete financial and economic benefits to the collaborating parties.
So, what do the partners get from participation on the RCA collaborative platform?
African Countries
Facilitation of African governments to invest directly in natural resources extraction and exploitation projects themselves as owners, thereby appropriating all the net proceeds of resource extraction and generating new streams of government revenues that will help Africa switch from financing development from debt to using own resources.
As governments will appropriate the entire net wealth created from mineral production rather than just tax (which is only a derivative of corporate profit), this model has the potential to increase treasury revenues from resources extraction three or four fold.
Benefits to African Governments
- Debt-free development: The RCA model utilises only the natural resource as the financing tool for investment in production projects. This means that with our assistance resourced nations will leverage local assets – the natural resource – as capital instead of relying on foreign direct investment and international debt as the main drivers of development. Accordingly, RCA’s projects in the productive sector are delivered entirely on non-recourse finance basis with no sovereign debts or sovereign loan guarantees required. All projects are delivered by world-class international consortia on a complete turnkey package basis, including non-recourse finance, thus ushering a new era of debt-free economic development in Africa.
- Mainstreaming LDI above FDI: The above RCA model has the major benefit of mainstreaming local direct investment (LDI) as the new driver of Africa’s economic development and moving the continent away from reliance on FDI as the determinant of the pace, magnitude and nature of Africa’s development and prosperity. For those reasons, RCA’s investment packages are offered directly to government or local communities on non-recourse terms and with no strings attached.
- Rapid job creation from local investment: The RCA approach enables governments to fight unemployment and poverty with production. Instead of governments using the old fashioned traditional methods of waiting upon foreigners to come and create jobs for their people, on the RCA collaborative platform they can themselves and local communities be facilitated to invest directly in production projects, thereby creating domestic jobs, growing the economy and delivering prosperity to their people without having to wait for foreign investors. The pivotal feature of RCA’s economic approach is to fight unemployment, poverty and underdevelopment with production.
- Domestication of capital and profits in Africa: All in all, RCA’s key objective is to ensure that all new wealth that is created from Africa’s human and natural wealth resources stays in Africa and is reinvested in growth and prosperity of Africa’s people, which is exactly what happens in developed countries and is the reason why they are continually prospering while Africa is not. As an integral part of delivery of its mission, RCA’s project financing model domesticates the domicillium of capital in the productive sector, as RCA finance is offered exclusively to government itself or local community as the investors. The domestication of capital domicillium locks in Africa’s wealth as all factors of production are being remunerated in domestic currency, and the newly created net wealth (profit) stays in the country for further domestic investment in development instead of being repatriated or remitted to fund development in foreign countries.
- Capitalisation of Africa’s natural resources and connecting Africa directly to billions of dollars on international capital markets: The game changer in RCA’s new development approach is the capitalisation and monetisation of Africa’s natural wealth resources – especially land and mineral resources – on the national balance sheets and leveraging their asset value as the financing tool for investment in development. Our strategy connects Africa directly to billions of dollars of project finance on international capital markets without the intermediation of foreign investors, using only the natural resource and production as the financing instruments.
- Radically transformational approach:The economic benefits that your country will get on RCA’s new collaborative platform will be radically transformative: rapid inward looking investment; locally generated job creation; reinvestment of economic added value within the domestic economy; self-driven growth and prosperity as opposed to outsourcing the destiny of Africa’s people to foreign parties. For the very first time in history, we have a North-South economic collaborative model and interface that decouples Africa's people from dependence on the economic agency of foreigners and puts them firmly in control of their own development, growth and prosperity.
- Free Investment Promotion: Free advertisement of your country’s investment opportunities and projects to international investors, financing institutions, contractors and suppliers on a platform that brings together everyone looking for opportunities in Africa.
- Political stability: As governments begin to deliver development, jobs and prosperity to citizens by direct economic activities, citizen satisfaction and contentment with government will create greater national social cohesion and political stability.
Financing Partners
Benefit from an independent interface on which they can freely offer assistive guidance in the structuring of deliverable, operationally viable projects that meet their lending requirements.
This approach creates new markets and growth of investment portfolios and works better than simply doing due diligence on projects that may have already been poorly planned and structured.
Benefits to Financing Partners
- Opening new markets for themselves: RCA’s financing partners benefit immensely from an independent interface on which they can freely offer assistive guidance in the structuring of deliverable, operationally viable projects that meet their lending requirements, thus creating their own new markets and growing economically sound investment portfolios - a proactive approach that works better than simply doing due diligence on projects that may have already been poorly planned and structured.
- Mitigation of non-recourse lending risk: Risk mitigation on the RCA non-recourse lending platform is enhanced by the inclusion in RCA’s operations agreements for government projects, independent control of management of the project throughout the debt repayment period, with the lending institutions having rights to approve the appointment and removal of directors, as well as ring fencing of the projects against any policy changes that may adversely affect the viability of the business.
- Lower risk of debt default through control of director appointments.
- Lower risk of encumbrance of business operations by adverse government policy changes as projects are ‘policy ring fenced’.
Export Promotion Agencies
Deliver growth to your national economy by directly facilitating demand growth in the countries to which your industries can export their goods or services.
Supporting resources extraction projects both generates exports of plant and equipment for production and secures opportunities to import the commodities produced.
Benefits to Export Promotion Agencies
- More rapid creation of export markets: Creating lending opportunities for financial services in emerging markets, new markets for industrial production.
- Promoting economic growth: New markets created on the RCA platform will increase international trade and drive economic growth in both the North and the South.
International Suppliers and Contractors
Create and grow new export markets for their products and services by collaborating in facilitating projects to which they sell those products and services to.
Benefits to International Suppliers and Contractors
- Free brand promotion and visibility of your company on a collaborative platform subscribed to and valued by governments and development agencies for its focus on facilitating African economic development.
- Free access to latest projects and contract opportunities from Africa.
- Opportunity to secure contracts that are negotiated for you as part of a bigger all-inclusive investment package offered to the host country by RCA.
- Replicability of participation on similar projects across the whole of Africa.
Mining / Mineral Production Off-take Buyers
By becoming early stakeholders in the facilitation of resources extraction projects, production off-take buyers secure guaranteed new supply sources from the initial stages of project development.
Benefits to Mining / Mineral Production Off-take Buyers
- Membership is FREE.
- Free brand promotion and visibility of your company on a collaborative platform subscribed to and valued by governments and development agencies for its focus on facilitating African economic development.
- Free opportunities to secure mineral offtake deals from new mining projects that are negotiated for you as part of a bigger, comprehensive investment package offered by RCA to the host country with participating companies already included in the project delivery consortium.
- Replicability of participation on similar projects across the whole of Africa as your company builds a track record as a reliable mining production offtake buyer on RCA's collaborative platform.