How Can Africa’s Resources Profit Its People?
Tune in to the BBC’s Africa Debate and Make your Voice Heard
Whether Africa will ever harness the full potential of its natural resources to combat poverty is a question that is more relevant now than ever, as new discoveries of coal, oil and gas look set to transform global energy markets and – we hope – the economies of resource-rich African countries. It’s a question the BBC will pose to global experts in the Africa Debate in Addis Ababa at 19:00 GMT/UTC on 26th October. ONE will be participating in the debate and citizens across the continent will be airing their views. We’d like to hear yours.
Extractives governance is in the spotlight. Africa hosts about 30% of the world’s reserves of extractive resources, but most of its resource-rich countries have been trapped in recurring conflicts, corruption and mismanagement, losing critical opportunities to leverage resources for their social development. Victims of the “paradox of plenty”, these countries are plagued with inequality, high poverty levels and slow progress in meeting the Millennium Development Goals.
But it’s not all bleak.
Twenty-one African countries have signed-up to the global Extractives Industry Transparency Initiative to improve their resource governance and investment environments. According to Nigeria’s Finance Minister, Ngozi Okonjo-Iweala, revenue transparency has generated an improved credit rating for Nigeria and led to sizeable increases in foreign direct investment of $6 billion a year in the oil sector and $3 billion a year in the non-oil sector. This has produced much-needed development finance for the country. And Liberia’s Dr Ellen Johnson Sirleaf took the lead in enacting the continent’s first national extractives transparency law, which has helped restore socio-political stability amongst previously warring factions and has increased revenue flows in a country ravaged by mineral-fuelled conflict. Botswana’s long-standing former President Festus Mogae has made clear that the country’s impressive health and education gains have depended upon efficient and transparent management of its diamond revenues and that without these revenues, Botswana would have long lost all hope of winning its life and death struggle against the HIV/AIDS epidemic.
Such initiatives are supporting the continent’s economic boom and extractive resources have shaped the economic trajectories of many countries. But in Africa, these sectors have operated in a closed circuit for far too long, with weak links to the broader economy. There has simply not been enough action to maximize government profits from extractive endowments and to channel them through government coffers to the people. For this to happen, leaders need to crack down on corporate tax evasion, corruption and massive revenue leakages throughout the extractives supply chain. Those revenues are needed to profit Africa’s people, not corporate and government pockets.
But is this enough? What are the broader solutions? stronger government-citizen accountability? Better corporate social responsibility? Open contracts and an end to secret deals? Independent parliaments monitoring corporate and government compliance with transparency laws and anti-corruption regulations? Public influence on state spending of extractive revenues and stronger demand for revenues to be channeled into public service delivery? Or all of these?
Here’s a chance to raise your voice and exercise your right to be heard…
Add your questions in the comments below. We will then pass them along to the producers, who will incorporate some of your comments into the on-air debate.
You can also take part on:
Twitter – using hashtags #bbcafricadebate and #resourceafrica
And tune in to the BBC World Service at 19:00 GMT/UTC on Friday, 26th October to listen to the broadcast from Addis Ababa, Ethiopia!
- Previous Post Why we need to invest in women farmers in Africa
- Next Post Announcing the 2012 ONE Africa Award Finalists
ONE is a movement of 3 million people in Africa and around the world fighting the injustice of extreme poverty.
A single person's voice may go unheard, but if we come together as ONE, we cannot be ignored.
Join ONE today because together we can end extreme poverty.
 |
 |
 |
About the Blog
The International ONE Blog is a daily log of the anti-poverty movement. The site is operated by ONE staff, with guest contributions from ONE volunteers, members and allies.
The content of each post and each comment represents the views of that author and does not necessarily reflect the views of ONE. ONE does not support or oppose any candidate for elected office, and any post expressing support or opposition for a candidate is not endorsed by ONE.
October 19, 2012 at 22:09
What are the broader solutions? —Stronger government-citizen accountability? -YES! …….Better corporate social responsibility?- Yes butb not like WIN WIN WIN BONAZA TRENDS commomn in the Nigeria telecoms which is always a continous thing………… Open contracts and an end to secret deals?- that can only be minimised because not all united states contract remain open , the FBI trends says that all…………. An Independent parliaments monitoring corporate and government compliance with transparency laws and anti-corruption regulations?- Can only be acqired in a true democratic system that takes fundamental issues such as education, local production protection, security enhacement, building and protecting national companies instead of running them down and buying it with token under the the guises of privatisation an example of NITEL in Nigeria. of Public influence on state spending of extractive revenues and stronger demand for revenues to be channeled into public service delivery through proper checks and balances.
So many issues that only determination of all parties involved will only make things right. For instance, how could an indigenous company with the help of our so-called rulers, leaders be ripping its citizen off under the guises of providing social amenities an example of the multiple toll gate in Lekki Lagos Nigeria when we have NEPAD not possessing such between countries that are borders to Nigeria to facilitate free trade maximisation.
October 20, 2012 at 18:10
These are important questions and I am glad the BBC is giving this issue the serious attention it needs. I am concerned that our governments have not made genuine efforts to put checks and balances in place to deal with the corruption that is so rife in the oil, gas and mining sectors. In Mozambique, our patronage system will make sure that the largest profits from our gas reserves go to the political elite. Out parliament and our judiciary are not strong enough to challenge political leaders. Some parliamentarians and judges are also benefiting from this system. As citizens we have to pull these patronage systems down. In the past, we have joined hands to fight for liberation and human rights, and now we need to come together and fight this corruption. This is our new struggle and we have to unite across the continent, from Ghana to Mozambique, to stop this corporate colonialism. ONE is right. We must demand our revenues. If we do not, our government leaders will be happy to let our capital benefit Chinese, American and European banks and the pockets of corrupt politicians.
October 21, 2012 at 19:02
NAYD would argue that Africa’s natural resources has been a hindrance to its development. Our thousands of members will be holding a summit in 2013 on youth-led sustainable development in Africa, and this very topic will be a core subject. Please read our concept note at http://www.nayd.org/PDF/Summit%20Concept%20Paper.pdf
October 22, 2012 at 10:47
My concern is about corporate compliance with Environmental Action Plans and their disclosure of implementation reports on these Plans. We must make sure that environmental investments result in absolute reductions in emissions. International financial institutions must also make sure that environmental loans result in significant emission reductions. No further low-interst loans should be extended to companies unless they comply with strict environmental standards. Companies cannot and should not be allowed to weaked proposed environmental standards, especially in countries where environmental governance is weak but essential to sustainable development. This is the case with Africa.
October 22, 2012 at 15:22
What can be done to ensure that Mozambique´s wealth in natural ressources (i.e. gas and coal) is utilized to fight poverty and create decent jobs for the local population?
October 22, 2012 at 15:29
Bravo,ONE.org.To fix the problem we need to expose the evils being executed by the leaders of the African Continent.My questions and other comments are on your Facebook page.
October 22, 2012 at 15:52
How can leaders of African countries be made more accountable to the world? SADC and other African organisations of this nature, protect one another even in their corruption (see the atrocity that is Zimbabwe being deemed ‘handled’ by the SADC countries while refugees flood South African borders). South Africa itself, for example, is slipping into the slippery slope that is corrupt governance while the world can do nothing. Its own people can do nothing. How can this be turned around on the international political front? What real pressure can the world put on these countries in order for them to turn around and actually see their resources being used for good and not as another tender scheme to benefit the politicians and their cronies?
October 22, 2012 at 15:55
i am sue if African leaders fight correption in their country, stop civel war and grade of power wealth in natural ressources (i.e. gas and coal) is utilized to well, and to fight poverty ,create decent jobs for the local population?
October 22, 2012 at 16:12
Our resources can profit us if African Leaders develop a sense of truth, effective and a good managerial administration that can help utilize the resources. But not to be govern by rude and corrupt leaders.
October 22, 2012 at 17:52
1 WHAT HAS BEEN DONE IN AFRICAN COUNTRIES OR IS THERE ANY PLAN IN ORGANIZED WAY TO PROTECT INFLUENCE FROM WESTERN COUNTRIES AS ITS VERY COMMON US AND MANY POWERFUL COUNTRIES HAVING INTENTION IN OTHER COUNTRIES RESOURCE LIKE FOR EXAMPLE
1THE VERY EXAGGERATED AND UNFAIR SANCTIONS AGAINST COUNTRIES WITH RESOURCE NOT TO USE
2 ACTIVE PARTICIPATING IN REBELLIONS OF SOME COUNTRIES
3 PARTICIPATING IN SOME COUNTRY’S DIRECTLY LIKE IN SUDAN ,NIGERIA AND LIBYA
OTHER QUESTION IS ARE AFRICAN LEADERS READY IN USING RESOURCE IN EQUITABLE WAY COZ WORLD WIDE PEOPLES WITH RESOURCE ARE NOT BENEFITING AS THEY HAVE TO AND WHAT IS PLANNED TO PREVENT IN NATION WISE
October 22, 2012 at 18:30
. According to Nigeria’s Finance Minister, Ngozi Okonjo-Iweala, revenue transparency has generated an improved credit rating for Nigeria and led to sizeable increases in foreign direct investment of $6 billion a year in oil sector and $3 billion a year in non-oil sector. These generated finances from Global Extractives Industry Transparency alone is enough for development in the country. But the Big Question now, is where are the generated finances going into? Is it the Nation Nigeria of the Leaders Pockets in Nigeria? Let Transparency and Fairness be the Governments/Leaders watch word. Africa Continent needs a change Mindsets of the Governments/Leaders and Reorientation African Populace in general for us all to achieve a positive tranformation and eradicate poverty from the Africa Continent.
October 22, 2012 at 20:05
Hello
i have a big question for BBC first…..why our our rulers not leaders….tried to hide or protect other dictators from arresting …eg. hassan al bashir of Sudan../the murderer/…..
why USA still silent about it?
the second one…..for Nigerian Leader. and the rest rulers…..why still shut their mouth about the terrorist Boko Haram…so many Chrisitians killed there….no body condemned it.
if God luck couldn’t protect Nigerians why Au push him to leave the power?
the third one is ..about Mali…..Au should protect the people of Mali like Somalia…but still no progress.why?
the last one is …why our rulers haven’t a limit to their powers…..is it
necessary to start revolution and fight each other?…..why they don’t leave the power at least after 10 years…..?
thank you so much ….
i would love to attend
their if it is possible.
Wossen kassahun
October 22, 2012 at 22:08
Nations like Germany developed with our natural resource, that is oils and gold, but made buts use of it renewable natural human resource and a function government system. Even when the government taxation system is well maintained in Africa, we can developed from that.
Hence my suggestion is to reform all government systems in Africa bring about accountability of the people and making them aware. They would then make sure that the well functioning government is transparent and accountable to the citizen.
Furthermore, make sure that all the young people are given quality education – not education to meet the MDGs and numbers. Universities and polytechnics improved so that the young people (who are renewable resource) can make best use of their talent to bring about development as it happen in Germany after the War world II especially promoting education for girls.
When government system is functing with a robust private sector, the natural resource will bring about positive development others even if we have hips of golds and diamond it will be miss managed.
October 22, 2012 at 22:18
Nations like Germany developed without natural resource, which is oils and gold, but made buts use of its renewable natural human resource and a function government system. When the African government taxation system is well maintained and really functional, we can develop from that.
Hence my suggestion is to reform all government systems in Africa bring about accountability of the people and making them aware. They would then make sure that the well functioning government is transparent and accountable to the citizen.
Furthermore, make sure that all the young people are given quality education – not education to meet the MDGs and numbers but real education even if means using local languages. Universities and polytechnics improved so that the young people (who are renewable resource) can make best use of their talent to bring about development as it happen in Germany after the War world II especially promoting education for girls.
When government system is functioning with a robust private sector, the natural resource will bring about positive development, otherwise even if we have hips of gold and diamond it will be miss managed and promote havoc that progress.
October 22, 2012 at 23:09
Directors and shareholders alike across the world talk about a world without poverty
And nations free of crime. Yet they love their wealth and status so much that they fail to reduce the salary differentials.
If human capital should be valued as much as financial capital we would then be able to see the real rate of return on investment.
October 23, 2012 at 07:37
The challenge of resource curse is enormous to African resource- rich countries, such as Sudan, Liberia, DRC and Tanzania (my own country). The major behind this curse is lack of good and responsible leadership. Why should the leaders continue to see resource depletion to abroad in the name of FDIs? Why should these countries design good mineral and gas policies for the benefits of their citizens?
Lastly, why did the Tanzania government allow the foreign mining companies contracts (about eleven) to own 100% shares of such mining countries?
We need to have good and responsible leaders to wipe out this resource-curse.
October 23, 2012 at 11:04
until we stop exporting raw materials, start processing them here and fire this greedy leaders who are there to enrich themselves Africa will be amongst the best economic hub in the world.
October 23, 2012 at 13:25
THE PROBLEM IS NOT AFRICA, THE PROBLEM IS STARTING FROM THE WESTERN POWERS WITH THEIR INFLUENCE, MILITARY MUSCLE, POLITICAL INFUENCE AND MONEY WHO COME TO BUY AFRICAN LEADERS ON BENEFITS , SO THAT AFRICAN LEADERS BECOMES GANGBAGS AGAINST THEIR PEOPLE RECEIVE CORRUPTION FROM WESTERN POWERS GOVERNMENTS AND THEIR MULTINATIONAL COMPANIES OF THE WORLD TO BUY CHEAP AFRICAN RESOUCRES AND GET THEMSELF RICH WHILE LEAVE AFRICANS AND AFRICA CONTINUING TO BE POOR…ENDLESS VICIOUS CICRLE OF POVERTY.
THE UNITED NATIONS IS RESPONSIBLE TO MAKE SURE THAT, NO FOREIGN POWERS AND THEIR MULTINATIONAL COMPANIES WILL BUY CHEAP AFRICAN RESOURCES WITH PRICE OF CORRUTPION ON AFRICAN LEADERS.
THE ADDIS ABABA SUMMIT WILL HAVE TO ENSURE THIS TOO.
October 23, 2012 at 13:59
Just a simple question, how much is the Foreign Aid helping Africa? Is it not a means of job creation and securing their future income for the Western countries? If not, why almost all the nations working in the foreign Aid organization and NGOs are entirely foreigners? At the same time, I believe that those people are not competent enough to work in their own country.
October 23, 2012 at 16:13
The issue is WHY Africa’s Resources always profit to a minority? For example, How Niger can be ONE of the 10 poorest countries in the world when they are such important Resources in its subsoil (uranium, gold, petroleum,..)? I think that our big problem is the fact not to distinguish common welfare from private property. When a relative becomes business manager, minister, mayor … his family and friends think that it is the end of their problems. It seems that he will have a box full of money where he can draw without reporting to anybody. The saddest thing in it: IT IS OFTEN THE CASE! Public money is mine when I’m in charge of managing it. So often there will be these beliefs, Africa’s Resources won’t profit to ALL. I do not even speak about the complicity of the western countries which facilitate misappropriation of billions to our leaders. During this time, they keep their role as sermonizers regarding good governance.
But I’m convinced that it will change, change is in progress because Africans do not want to be any more spectators of these misuses.
October 23, 2012 at 17:26
I agree with your comment Marouli. True that most of the time the minority are benefiting from the country’s resources. They vote for them into power and then they are forgotten after the elections are over. In direct dictatorship is practiced by some African leaders and they ignore the human rights of their people until they are abused.
October 23, 2012 at 16:52
Is the governance in African countries immune to western unjust intervention that potentially disrupts the process of harnessing our resources and creates conflict of interest? Are the political elites honest, concerned and accountable to their people? Since the 1980s, African and other countries have been forced to accept and apply noeliberal policies that have been brewed on the Washington Consensus. These policy prescriptions have further indulged these poor countries in to even deeper poverty that they are still forced to serve their long accumulated debt by opening their doors for the west to exploit their resources. Are countries in OECD genuinely in support of poverty reduction as a moral issue? How strong are African political elites to stand western pressure with their policies?
October 23, 2012 at 17:15
Africa need a change of leadership and stop blaming all their problems for development on colonialism. It is high time that the spirit of ubuntu take place and inspires other African leaders to make positive changes within their countries. Many African leaders are self centred and very ignorant of the needs of their people. Civil wars and hatred between different tribes should end and people must learn to compromise despite their differences and spirit of forgiveness should be among the Africans. We cannot anymore live in the past but live the present with high hope for a positive change where all Africans unite as one. Above all we should trust the Almighty God to help us against the evil desires in our hearts and that we inspire positive changes to build sustainable development and socio-economic development for all. The evil of corruption should be stopped and transparency within the government sector should be practiced. The political situation in some African country need to be more stable and the respect of human rights must be protected.
Tanga David
Namibia
October 23, 2012 at 18:24
It is just simple…african leader should stop use our own resourse to buy power..shuld be accountable,fight corruption and neocolonization. Apart from these african leader should stop using resourses for civil wars and human right abouses…..i hink all african countries have the resources that can pool africa from cronic poverty that has been clouding over the continent for long period of time in general and horn of africa in particular. I suggest that bbc shuld create more pressiure on media liberalization that may expose africa lradder to concept of democacy if any of these leader are ready to advocate such changes.
October 24, 2012 at 10:32
We need a real positive change. ( a change of leadership).
October 24, 2012 at 11:07
we need real and loyal patriotic leaders to their country as well to the whole AFRICA
October 24, 2012 at 11:37
Thank you very much for giving this chance to raise our voice for BBC .
my question is:
1. HOW AND WHAT IS THE GOOD WAY OF PREVENTING CORRUPTION AND HIV AIDS
2. WHAT ABOUT CAR ACCIDENTS? MANY PEOPLE ARE DIED FOR ACCIDENTAL AND
WRONGFUL DEATH BECAUSE OF CARELESS DRIVERS, EVERYDAY YOU CAN
HEAR THE DEATH OF 3 OR 4 PEOPLE AND SOME OF THEM WILL BE DISABLE
FOR THE REST OF THEIR LIFE. WHAT CAN WE DO TO STOP THIS? THERE IS NO
LOW, THE GOVERNMENT OF ETHIOPIA MUST TAKE SERIOUS ACTION TO
CONTROL CARELESSNESS. PLEASE LET US GIVE VALUE FOR LIFE
3. LET US TRY TO STOP CHILD MARRIAGE
4. THIS SHOULD BE MY FIRST QUESTION, I LIKE TO KNOW THAT THE GOVERNMENT
OF ETHIOPIA CAN BUILD JUST SIMPLE HOUSES FOR THE CHILDREN LIVING WITH
OUT FAMILY ? THE GOVERNMENT SHOULD HELP THOSE CHILDREN THEY DON’T
HAVE FAMILY, CLOTHES , FOOD THEY HAVE NOTHING, THEY SLEEP ON THE
ROAD, SOMETIMES THEY WILL DIE BY CAR ACCIDENT WHILE THEY ARE
SLEEPING. THE GOVERNMENT SHOULD GIVE THEM HOUSE LIKE SIMPLE
COMPOUND,
THANK YOU AGAIN
October 24, 2012 at 14:48
corruption, greed, education, no jobs…….the biggest problems
October 24, 2012 at 18:56
We are not in total oblivion as to how Africa’s superabundant resources can profit its own people. We are not in dire need of expertise and material resources. The problems are: endemic corruption, abject lack of political will and integrity, and lack of feasible and inclusive economic policies.
Can our governments provide a realistic plan on how they will invest the billions accruing from the revenues? If yes, can they give us a comprehensive annual report on the allocation of the revenues? And if they couldn’t, will they be penalised or be cocooned with diplomatic immunity? How can our governments utilize the so-called extractive revenues from our resources to empower Africans with the highly sought-after skills/expertise of today’s and future’s workforce?
How can African Heads of State leverage on our huge resources to build robust and sustainable private sectors in the African States? Would they continue to stash Africa’s treasury for their extended families? Would African Governments use these accrued revenues to champion small businesses, cut down their taxes and help them to grow and thrive? Would African States make Africa more attractive for indigenous investors, entrepreneurs and small businesses? Or would they continue to run them down with bureaucratic Red Tapes?
Africa has 60% of the world’s arable and irrigable land. How can our governments revitalise agriculture and rebuild rural economies? 40% of the world’s cocoa comes from Cote d’Ivoire alone, yet millions of Ivorians can’t afford a bar of chocolate. My country Nigeria is the 6th largest producer of oil in the world, yet we suffer recurrent scarcity of petroleum products.
What a paradox!
Africans are fired up for change! Change is in the offing!
October 24, 2012 at 20:30
Africa needs leaders who listen their people .
October 24, 2012 at 20:36
The Mo Ibrahim award for African governance was not awarded this year. What does that say for the standards of governance and quality of leadership on our continent?
October 24, 2012 at 22:29
Expand the oil footprint in the economy instead of focusing on oil revenues as the driver of growth and for delivering public goods.
October 26, 2012 at 10:27
Henry, I presume that by oil footprint in the economy you mean consolidating local industries around the extraction activities. I agree that this would have so many benefits in terms of employment, added-value to the commodity, and pure know-how, over and above collecting and spending the revenues. How can we get governments to focus on this as well?
October 26, 2012 at 00:16
Estate Agents and banks and construction companies have caused immense damage to Africa. International Estate Agencies exploited the markets by over valuations on properties and put immense strain on governments that wished to purchase property from the private sector and redistribute the land for agricultural purposes to the historically disadvantaged people.
These Estate Agencies and the sellers are the only beneficiaries and have caused government programmes to fail as the government budgets could not support the high price of property, thus communities are suffering and experience lack of housing, sanitation and other bulk services. Government officials did not consider the effects of purchasing some sites at high prices.Thus causing immense damage to our economy on the long term.
This has caused a huge financial constraint on governments, new farms & home owners, due to incorrect valuations and economic challenges, eg; 20 years of debt, whilst the estate agents enjoy their commissions.
If the process can be reversed gradually, it will assist in major economic changes in the future. As housing will become affordable, people will be ambitious to improve their homes and not live in frustration. Governments are frustrated and people are frustrated, thus economic turmoil.
Currently, more and more slumps are being noticed, thus causing illness, no motivation, and lack of independence. This crisis is depening and must be addressed. The more land becomes available at affordable price and affordable homes built, the tension will ease, the municipalities will benefit, people will benefit, less will be spent on health issues, and resources within Africa can become more eqitable, due to the proper concentration of socio economic values. The long term spin off will be tremendous.
October 26, 2012 at 10:23
Nigeria has a very dark history of corruption in the oil sector, which has enriched its elite and given the oil companies hefty profits while two thirds of people live in poverty.This is no secret. A reuters article has just come out – Nigeria lost out on tens of billions of dollars in oil and gas revenues over the last decade from cut price deals struck between multinational oil companies and government officials. A report on this was leaked. No transparency, no accountability. Nothing will be done. No follow up. No recovery of money. We can be sure. This is Nigeria we’re talking about.
October 26, 2012 at 11:03
It is my utmost belief that we have exhausted all of our ‘mind’ options when it comes to solving matters like this. We have created a ‘flatland’ as Ken Wilber describes it. We are capable of lots of intelligent talk, we can go to Mars… our physical and technical capabilities are breathtaking. But all of this is heartless.
Because of the lack of heart – we are able to turn these capabilities onto one another. Because of this, we are ‘for profit’ driven and not ‘for the greater benefit of all.’
With Africa being the Cradle of Mankind, we bring to the world to most ancient philosophy that describes the scientifically substantiated fact of the inter-relatedness,inter-connectedness, and inter-dependence of everything and the sacredness of everything.
This philosophy is known by many names… here in South Africa it is knows as uBuntu. In the world we see it emerging as Oneness, Integral, and so on.
Until such time that we are able to return to our uBuntu…. our Highest Potential, there is no doubt in my mind what-so-ever that we will continue exploiting one-another and the land.
The time has come for is to integrate our endless talk with heart. Ke Nako!
What is done to one is done to the other.
Anna-Mari Pieterse. Humanity’s Team South Africa
October 26, 2012 at 16:03
A wake up call post…
Cheers,
Delima
October 27, 2012 at 14:20
i believe that if we educate our people we can try keep our minerals in Africa instead of sending them all around the world n having to buy them baq from countries we could generate more profit and try eradicate poverty. i know this is late but here me out im tired of africa being cheated of its own riches WE CAN LEARN TO MANUFACTURE RESOURCES OURSELVES VIVA AFRICA !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!