Tackling Africa’s Resource Curse Through Governance, Local Development, and Economic Diversification

Tackling Africa’s Resource Curse Through Governance, Local Development, and Economic Diversification

The SITEI 2024 Conference brought together thought leaders and industry experts across Africa and North America to discuss pressing issues in Africa’s extractive sector, including a headline panel on overcoming the “resource curse”. Moderated by Ms. Achare Takor, Head of Intellectual Property Practice at Centurion Law Group, and based in Cameroon, this panel highlighted practical strategies for transforming Africa’s natural resources into sustainable development opportunities.

Panelists included:

  • Georgia Mutagahywa – Corporate Communications and Country Liaison Manager
  • Dr. Peter Hollings – NOHFC IRC Chair in Mineral Exploration, Lakehead University, Ontario
  • Nana Akwasi Awuah – Managing Director, Precious Minerals Marketing Company
  • Titus Arannilewa – Assistant General Manager (HSE) & ESG Lead, North South Power

Opening the Dialogue on Governance Reforms

Kicking off the discussion, Ms. Georgia Mutagahywa from Tanzania underscored the need for governance reforms to tackle the root causes of the resource curse. She highlighted that without transparency, anti-corruption measures, and rigorous compliance monitoring, illicit financial flows would continue to drain Africa’s wealth. Ms Mutagahywa pointed to Tanzania’s own experiences, illustrating how governance reforms are essential for curbing these challenges and ensuring resources benefit local communities.

Emphasising Local Economic Impact

Mr. Titus Arannilewa from Nigeria presented immediate steps for leveraging extractive resources to benefit the local economy. Headvocated for legislation mandating extractive industries to hire local labour and source materials from local suppliers. He said that such policies could stimulate domestic job creation, spur economic activity, and reduce the dependence on foreign expertise, making resource extraction a true asset for local development.

Advocating for Economic Diversification

Also adding an international perspective, Dr. Peter Hollings from Canada opined that economic diversification is key to overcoming the resource curse. He encouraged African nations to channel revenues from natural resources into other sectors like agriculture, renewable energy, and technology. Highlighting the importance of public-private partnerships, Dr Hollings stressed that infrastructure investments and skills development could pave the way for successful diversification, making economies less reliant on a single sector.

The Potential of Critical Minerals for Long-Term Development

In her closing remarks, the moderator, Ms. Achare Takor, pointed out the immense potential of Africa’s extractive sector in the face of rising global demand for critical minerals, such as cobalt, lithium, and rare earth elements. She emphasised the strategic importance of adding value to these minerals before export. According to Ms Takor, processing and refining resources locally can increase revenues, create jobs, and foster sustainable economic growth for African nations.

Insights from the Q&A Session

During the Q&A session, a member of the audience raised a question about the lingering impact of colonisation on Africa’s resource management. Ms. Mutagahywa acknowledged that colonialism played a significant role in shaping the current challenges but stressed that African countries now hold the power to reshape their future. She advocated for accountability and effective resource management, urging African leaders to implement sustainable governance practices to break free from historical constraints.

Conclusion: Moving Towards Sustainable Development in Africa’s Extractive Sector

The panel offered a roadmap for Africa to overcome the resource curse by implementing governance reforms, prioritising local economic development, and pursuing economic diversification. The panellists’ insights underscored the vast opportunities within Africa’s extractive sector and highlighted the actions needed to transform these resources into engines for sustainable growth.

As the discussion concluded, attendees were left with a powerful message: Africa’s path forward lies in taking ownership of its natural wealth and using it as a catalyst for inclusive, long-term development.

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