Saturday, 28 February 2015

Africa, her natural resources and under-development

The abundance of natural resources in Africa has been at the heart of many debates, especially in relation to the level of development in the region compared with other parts of the world. Africa is endowed with both a great volume and variety of natural resources. Indeed, the variety of natural resources to be found in Africa is perhaps far greater than on any other continent. It ranks first in chromium, cobalt, diamond, gold and vanadium reserves and production, among others. In spite of this favorable context, most African mineral resource rich countries have so far failed to harness the full potential of the resource boom to spur their economic growth and development. The value of Africa’s natural resources – valued in the trillions of dollars – dwarf other sources of capital such as remittances and aid. From laptops to cell phones, cars to airplanes, all kinds of everyday products are made using minerals from Africa. It is not an exaggeration to say that the world depends on Africa's natural resources. Africa’s natural resources have been the bedrock of the world’s economy and continue to represent a significant development opportunity for the global market.  

Since the colonial period, African economies have either deteriorated or stagnated with detrimental efforts on the Africans.  In comparison to other continents the African economic development progression has been marginal relative to other resource-rich countries across the globe. The history of resource extraction in Africa and in particular during the colonial period and the subsequent governments highly informed by the fading colonial influences is substantially a history of plunder. Too often, African resources have become a burden for the countries that harbor them, a curse rather than a blessing, a blockage to development instead of a source of finance to foster sustainable development. In Africa, raw materials resources frequently go hand in hand with social and military conflicts, internal and international warfare, environmental degradation, evictions and weak or non-functioning state institutions.

The global economy in the manner of transnational raw materials corporations has played significant roles in plundering the economy of Africa. Often with the consent of host governments this corporations have managed to sign favorable agreements which reduce tax obligations and limit the royalties to the state at the same time having local corrupt elites transfer large sums abroad to tax havens and secret accounts. The corporations do not act in isolation; they are part and parcel of wide-ranging attempts to secure the flow of raw materials from Africa to the European Union and to the US.


The key concept in mobilization of resources for development within Africa lies with the shift in the balance in terms of the ownership and exploitation of resources and introduction of fair practices solely influenced by self centered African market policies to ensure the market and in particular the global economy does not take advantage of Africa to fuel its economy. Critique of the modes of accumulation of resources and exploitation for production should be a discipline for all Africa leaders with emphasize on strong African institutions not dependent on the international community which functions solely for the benefit of Africa. Delinking of the Africa economy from the international market is an impossible move and maybe unthinkable in certain quotas but may be the only way, Africa will mobilize its resources adequate enough to spur its stagnant economy. The challenge for the African continent is how to govern and harness the rich pool of natural resources to achieve a broad-based growth. African governments need to take strong action to implement concrete measures to ensure that their countries and their populations benefit from natural resource extraction.

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