Sub-Saharan Africa’s mining sector will receive greater investor attention owing to low labor costs, strong mining sector value growth and a solid competitive landscape, says BMI Research.

Botswana will most likely continue as the region’s best performing country, followed by Ghana and South Africa, as a result of low country risk profiles and an above average business environment.

However, BMI on Wednesday pointed out that the  region’s mining sector will remain the riskiest in the world over the coming quarters as regulatory uncertainty rises in various markets across the region.

In addition to increasing regulatory uncertainty, the region will also witness challenges stemming from underdeveloped infrastructure and small mining sectors.

In BMI’s index report on its outlook for the African mining sector, it notes that sub-Saharan Africa’s  mining sector will continue to be plagued by rising regulatory uncertainty as rising mineral prices will prompt local governments to demand larger shares of mineral resource wealth.

In the first quarter of this year, the Democratic Republic of the Congo (DRC), Tanzania and Zambia have implemented changes to their respective mining regulations, which BMI says damages investor sentiment in the region.

Regulatory risk in the DRC and Tanzania had been an anticipated and was taken into account in the index, the company said, as is reflected by both of these countries already having low government regulation scores of 18.9 and 13.1, respectively.