By Emmanuel K. Dogbevi
There is no doubt that the African continent is rich in natural resources.
The continent with an estimated over one billion population is rich
in renewable and non-renewable natural resources, however, there is
general agreement that the continent does not benefit from its vast
resources. These resources are mined and exported in their raw form.
Africa produces more than 60 metal and mineral products and is a
major producer of several of the world’s most important minerals and
metals. But issues about Africa’s natural resources are vexatious.
Some of the minerals mined out of Africa include gold, diamond,
PGE’s, silver, iron, uranium, bauxite, manganese, chromium, nickel,
bauxite, cobalt and copper. Platinum, coal, and phosphates are also
mined on the continent.
Africa also has rich forests, marine and aquatic resources that have
been exploited for years, but Africa’s share of the revenues, “have been
miniscule compared to what the mining companies have realised,” said
Dr. Stephen Karingi, the Director, Regional Integration, Infrastructure
at the United Nations Economic Commission for Africa (UNECA) in 2011.
Dr. Karingi has also said the top 40 mining companies operating in
Africa reportedly made net profits of about $110 billion in 2010 alone.
And these companies have a net asset base which exceeds $1trillion.
Information available also indicates that mining has come to dominate the export earnings of many African
countries. In 2005 minerals accounted for more than 80% of exports in
Botswana, Congo, DRC, Guinea, and Sierra Leone and more than 50% in
Mali, Mauritania, Mozambique, Namibia and Zambia. By 2008 sustained
demand from a burgeoning Chinese economy had seen prices for minerals
reach new heights.
Jean Noel Francois, the Acting Director, Department of Trade and
Industry at the African Union (AU) Commission has also said in 2011 that even
though Africa’s mineral resources are fuelling growth and development in
many industrialised and emerging economies of the world, Africa still
remains poor, under-developed and dependent on donor assistance for
national budget support.
He further reiterated the fact that Africa consumes very little of
its own mineral resources and exports most of it as raw materials, “with
little or no local value addition and beneficiation.”
The Eighth African Development Forum (ADF VIII) held from October
23 to 25, 2012 sought to discuss these issues and chart the way on
how Africa can harness it’s natural resources to benefit its people.
The conference jointly organised by the UNECA, the African Union
Commission and the African Development Bank is under the theme
“Governing and Harnessing Natural Resources for Africa’s Development”.
“The ADF, an ECA) flagship biennial event created in 1999, is a
multi-stakeholder platform for discussing the effectiveness of Africa’s
development policies and strategies…. It is to establish an
African-driven development agenda that reflects consensus, and has the
potential to yield specific programmes for implementation,” the conference concept paper has said.
The Concept paper further states that the Forum will build on the
outcome of the Fifth Joint African Union (AU) Conference of African
Ministers of Economy and Finance and ECA Conference of African Ministers
of Finance, Planning and Economic Development held in March 2012 in
Addis Ababa under the theme “Unleashing Africa’s potential as a pole of
global growth” and the analytical work carried out in the Economic
Report on Africa 2012 under the same theme.
It adds, the platform offers as much an opportunity to build
partnerships as for the occasion to further deepen discussions on
implementation of: the Africa Mining Vision (AMV); the AU Declaration on
Land; the Framework and Guidelines for Land Policy in Africa (F&G);
the Implementation Strategy for the Accelerated Industrialization
Development for Africa (AIDA); Voluntary Guidelines on the Responsible
Governance of Tenure of Land, Fisheries and Forests; and other
frameworks for best practices in the management of mineral, land,
fisheries and forest resources.
The overall objectives of the Forum are to raise awareness and
cultivate deeper understanding of the role of Africa’s natural resource
governance in its economic transformation. It will also provide an
opportunity to discuss frameworks, policy options and strategies to
better integrate mineral, land, fisheries and forest management into
national resource management programmes, strategies and policies.
And some of the specific objectives include to demonstrate the role
that Africa’s mineral, land, fisheries and forest resources could play
in its broad social and economic development; Deliberate on the
challenges that mineral, land, fisheries and forest resources
mismanagement pose to Africa’s development, and offer governance and
management models that can best support the continent’s transformation;
and promote sharing of models, experiences, best practices and lessons
learned in enhancing the role of natural resources in development in
Africa among others.
Some of the expected outcomes include the following; Better-informed
stakeholders about the role of natural resources in Africa’s
development; Deeper understanding of stakeholders on how to translate
frameworks and visions for natural resources management into practical
policies and actions; and Strengthened capacity of stakeholders to
advocate for prudent management of minerals, land, fisheries and forest
resources to enhance their contribution to development.
African countries must go beyond talk to action. The global economic
crisis and the eurozone crisis are enough evidence for action now.
The citizens of Africa have waited long enough. The teeming youth of Africa need jobs.
The 2012 African Economic Outlook (AEO) argues that youth
unemployment figures will increase unless African countries move swiftly
to make youth employment a priority, turning its human capital into
economic opportunity.
The AEO has also warned of looming domestic and external risks posed by the continued economic crisis in the eurozone.
This crisis, according to the AEO, threatens to constrain growth by
lowering the demand for Africa’s exports, reduce tourism earnings and
financial flows from foreign direct investments, Official Development
Assistance and remittances.
Dr. Emmanuel Nnadozie, the Director of Economic Development and NEPAD
Division, United Nations Economic Commission for Africa (UNECA) has
also argued that, “Exporting raw materials is equal to exporting your
jobs.” He indicated that, processing those raw materials on the
continent would offer jobs to citizens and add value to exports.
According to him, it is important to get Africans into the global
value chain. He said that can be done through natural resource
governance, knowledge and human resource development and growth that is
strong and broad-based.