Resource nationalism answer for Africa

Lazarus Sauti

Africa holds a huge proportion of the world’s natural and material resources of which only a fraction is currently being exploited.

In order for the continent to reap the economic and social benefits inherent in this wealth, it is necessary to urgently address issues such as proper resource management and the environmental impact of their exploitation.

This, therefore, requires bold steps as well as concrete answers to questions such as: who owns Africa’s natural resources? Do they (resources) belong to an individual, a country, a community or a continent?

Another question is who benefits from the natural and material resources, who wins and who loses economically, environmentally and politically?

In extractive industries, who is granted concessions, and who is benefiting from them?

Another question to pose is that how do Africa expect positive political, economic, social and technological growth when it does not own the means of production?

These questions demand bold answers simply because the majority of Africans are not benefiting from national as well as material resources despite swimming in diverse resources.

Mining concessions, for instance, are granted to foreign multi nationals whilst the locals are generally ignored – for no apparent reasons. This means resources are still controlled by non-indigenous Africans as well as non-governmental organisations (NGOs), and locals are ‘slaved’ to provide cheap labour.

The World Bank (WB), an international financial institution that provides loans to developing countries for capital programmes, estimates that a staggering 65 per cent of sub-Saharan Africa’s best arable land is still controlled by white settlers or multinational corporations.

Further, the international financial institution estimates that as much as 70 per cent of the net wealth in sub-Saharan Africa is owned by foreigners.

A recent United Nations Progress Report notes: “Africa loses US$63 billion, each year, through foreign multinational corporations’ illegal tax evasions and exploitative practices.

“The figure surpasses all the money coming into the continent through western aid as well as investments.”

Garikai Chengu, a Zimbabwean blogger and scholar at Harvard University, adds that Africa is being systematically underdeveloped and overexploited by the West.

“From oil to gold and diamonds, the western scramble for Africa’s resources has always caused problems rather than create prosperity,” said Chengu.    

The cure to the above problems, conversely, is resource nationalism – the tendency of people and governments to assert control over natural resources located on their territory.

The key is for African governments to get their priorities in order and start looking at empowering citizens to own the means of production, to own their God-given natural resources and prioritise productivity.

Blogger, Bernard Bwoni, points out: “Indigenisation and economic empowerment – key pillars of resource nationalism – are home grown initiatives that have the best hope of lifting the continent out of its mire and mud.

“It is economically empowered citizens who will eventually create jobs and jobs will eventually lead to a bigger middle class that pays taxes to fund public services.”

Rwanda President, Paul Kagame, says resource nationalism is the much needed bridge between poverty and sustainable development and requires African countries to focus on making better use of their natural resources.

“Building new momentum requires that we stop thinking about development as something we do with external resources.

“We must focus on making better use of what we already have domestically in terms of resources as well as national and regional markets,” he said.

President Kagame added that Africa must embark on a resource-based development journey.

“The continent needs to protect its resources as well as its environment, empower its citizens and benefit from vast natural resources.

“This demands Africa and her citizenry to embrace resource-based development,” he noted.

The Southern African Development Community (SADC) and African Union (AU) chairperson, Zimbabwean President Robert Mugabe, in his recent speech to mark Africa Day, which was posted on the African Union website, noted that it is important for African countries to take control of their natural resources.

He said African countries must not only harness natural resources, but industrialise fast and add value as well as beneficiate their natural resources for social and economic development.

“The time has come for African countries to industrialise their economies and move away from the continued exportation of their raw materials at very low prices for beneficiation and value addition in other countries.

“The continent should leverage the abundant and diverse resources for its benefits; Africa is richly endowed with vast natural resources which, if harnessed in accordance with our vision, Agenda 2063, will improve the livelihoods of the people of Africa, through the rapid eradication of hunger, poverty and diseases,” he said.

On 30 January 2015, while accepting the African Union chair, President Mugabe, also encouraged African countries to embrace resource nationalism through land distribution.

“Since the majority of our people depend on the land for sustenance and livelihood, we need to ensure they have access to land and that Africa’s vast agricultural potential is fully harnessed,” he said.

Sindiso Ngwenya, the secretary-general of the Common Market for Eastern and Southern Africa (COMESA) says the future of Africa is bright, but only if Africans can use the resources they have as anchors for regional growth.

To build an Africa that is prosperous, African Union Commission Chairperson, Dr Nkosazana Dhlamini-Zuma urges African Union member-states to embrace resource nationalism as well as to translate Agenda 2063 into their national plans.

“In realising Africa’s development, human development is not negotiable,” she said, adding that inclusive growth holds the key to Africa’s development. 

Dr Dhlamini-Zuma adds: “In order to facilitate for inclusive and sustainable growth, we must translate Agenda 2063 into our national plans so that we can facilitate for priority areas such as integration, youth and women’s empowerment, job creation, energy and infrastructure development,” she said.

She also said there is need for African countries to develop infrastructure as key enablers to investment, trade and economic growth.

Further, to embrace resource nationalism as well as to promote sustained inclusive economic growth, Chengu says resource nationalism (African ownership of African resources) is important as it has the capacity to transform Africa into a developed continent, but exposing and dismantling the financial imperialism, which prevent African economies from thriving is the crucial stage of African liberation.

“Financial imperialism involves western capitals using the International Monetary Fund and World Bank to overburden African economies with debt and force their governments to enact neo-liberal, counter-developmental policies, such as privatisation, austerity and structural adjustments that put the interests of foreign capitals over local labour,” noted Chengu.

To flee from financial imperialism, African countries must, therefore, commit financially to fund their operations, an idea supported by President Mugabe, who recently said that it is bad for the African Union to have more than 70 per cent of its operations funded by donors.

Ethiopian Prime Minister, Hailemariam Desalegn Boshe reinforces the argument for increased reliance on domestic resources.

“Effective and strategic use of local resources to catalyse additional financing from official and private sectors must be prioritised if African countries are to increase domestic investment and transform their economies,” he said.  

To effectively protect its resources and people from exploitation, Africa needs to adopt strong nationalistic policies.

Policy decision makers and important stakeholders need to be intelligent, selfless and truly committed to the unity of the people of Africa.

They need to consult widely to ensure resources are not only protected, but citizens are benefiting from them.

Political leaders need to be true servants of citizens to effectively renegotiate contracts with foreign mining companies so that Africans can benefit from their natural as well as materials resources.

Africa is a continent with great potential, but only if African Union member-states states attain full economic emancipation.

Resource nationalism is, therefore, the only way to go for Africa to protect its resources and ensure citizens access and enjoy their diverse natural and material resources.