Volume 8 Issue 1

THE AFRICAN MINING VISION: PERSPECTIVES ON MINERAL RESOURCE DEVELOPMENT IN AFRICA

Kojo Busia* and Charles Akong**

ABSTRACT

This article argues that, after the recent boom, the African Mining Vision (AMV), upon making development central in the extractive industry, is a paradigm whose time has come. We hypothesize that the Vision is forwardlooking with a robust ideational foundation, able to seize emerging policy windows towards lasting paradigm shift for Africa’s extractive sector. The article presents a dynamic framework for analysing policy change in the extractive sector in Africa, based on the power of ideas and interests networks. While the crisis in the sector presents an opportunity, the article analyses the binding political economy constraints that African governments would have to overcome at the global, regional and country levels to implement the transformative ideas of the AMV. The article presents a matrix systematically analysing possible scenarios for implementing the Africa Mining Vision. The implementation of the AMV would likely be non-linear. Vested interests, including resistance to change and diversity of country contexts, could lead to varied outcomes in the implementation of AMV in the short and medium terms.

Keywords: Africa Mining Vision, ideas, interest’s networks, extractives sector, commodity booms.

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.7


* Coordinator, African Minerals Development Centre (AMDC).

** Economic Affairs Officer, Team Leader, Linkages Diversification and Investment, African Minerals Development Centre (AMDC).

MAKING EXTRACTIVE INVESTMENTS WORK FOR AFRICA’S DEVELOPMENT: WHAT ROLE FOR QATAR IN SHAPING THE DEBATE ON NATURAL RESOURCE GOVERNANCE?

Fantu Cheru*

ABSTRACT

At present, emerging economies such as China, are the major importers as well as investors in Africa’s extractive sector. Indeed, they maintain a “stranglehold” on the continent regarding finance for development. Their success in gaining access to the resources of Africa is linked to an effective strategy that combines trade inducements, increased investment flows, aid for infrastructure and construction and technology transfers. With the recent dramatic decline in the price of commodities, and China’s re-balancing with greater emphasis on consumption-driven growth model, growth prospects in commodity-dependent Africa has dampened. Qatar, with its abundant hydrocarbon reserves and US$10 billion foreign exchange reserves, deploys its “soft power” to enable African countries develop their extractive sector fully, industrialize and end China’s financial stranglehold on the continent. Qatar can help develop Africa’s mineral processing industries through public private partnerships and experience. This is because of Qatar’s track record as a sound manager of natural resources. This type of partnership will assist African countries to get more out of their natural resources through valueaddition, and further deepen domestic technological capacity and job creation.

Key words: Qatar, China, Africa, minerals, oil, extractive, development

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.8


* Professor and Senior Researcher, African Studies Center, Leiden University, the Netherlands Associate Senior Fellow, Stockholm International Peace Research Institute (SIPRI).

TRANSLATING THE EXTRACTIVE RESOURCES TO ECONOMIC GROWTH AND TRANSFORMATION

George Kararach*

ABSTRACT

Most African countries are heavily endowed with natural resources. This gives the continent both the potential for, and threat to, growth/development. Natural resources yield “rents,” or profits from their production, which are crucial for resource-led development. The literature on the “rentier state” and how resource rents interact with institutions and political economy dynamics shows that rent flows through the socio-economic system influence development outcomes. Although the natural resources sector provides significant opportunities for the near term, it also does have significant risks for future generations, and the costs and benefits of resource extraction are seldom borne equitably. Ensuring social equity is a major challenge in natural resource governance, generally falling to governments to referee trade-offs and protect the most vulnerable, including current and future generations. It is critical, therefore, for the continent to address itself to important policy questions to ensure that natural resources are a boon for Africa’s sustainable growth

Keywords: Africa; sustainable growth; rentier state; development.

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.5 1.


* Senior Economist at the Economic Commission for Africa, Addis Ababa, Ethiopia.

CONCEPTUALIZING THE QATARI-AFRICAN FOREIGN POLICY AND ECONOMIC RELATIONS: THE CASE OF SOFT POWER

Ben O’Bright*

ABSTRACT

Using a case study approach, this article examines the shifting dimensions of Qatar’s international relations strategies with select, geo-politically important African states, including primarily the latter’s private sector and civil society, and focusing on the current or potential use of soft power in particular. To start, this article presents a comprehensive overview of soft power, including its international relations theory-based historical origins; definitional boundaries; associated tools and mechanisms; and the concept’s pragmatic problems and limitations. Second, the article offers several best practice case studies, including the United Kingdom and China, from which core lessons on soft power development and application can be gleaned. This will advance from a list of seven key lessons that any prospective soft power state should consider. Following this, the article engages in an examination of available evidence outlining Qatar’s attempted soft power action on the African continent and, particularly in Sudan, Somalia, Mali and Tunisia, arguing that it relies extensively on “carrotdiplomacy” or the influencing of others backed by material and financial resource inducements. Finally, five problems and roadblocks affecting Qatar’s approach to international relations will be presented, followed by alternative (soft) power-based strategies, which could be explored by its government and leadership.

Keywords: Soft Power; Qatar; Africa; Sudan; Somalia; International Relations; United Kingdom.

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.4


* PhD Candidate, Dalhousie University and Researcher, Centre on Governance, University of Ottawa.

MANAGING AFRICA’S NATURAL RESOURCE ENDOWMENTS: NEW DISPENSATIONS AND GOOD-FIT APPROACHES

Kobena T. Hanson*

ABSTRACT

Managing a nation’s extractive natural resource endowments can advance national development if done meaningfully. Unfortunately, across Africa, the apparent mismanagement of such resources, poor growth rates, social tensions, and civil strife in resource-rich countries have thrown up a great deal of literature on what is now known as resource curse.It has also ignited calls for enhanced governance and improved capacities for the myriad of actors engaged in natural resource extraction. This article draws on the extant literature to interrogate the complex entanglements of issues involved in the natural resource value chain in Africa. It argues that in spite of the general ills, economic challenges, and socio-political pains that resource-rich African nations face in exploiting and managing their natural resources, the extractive industry in Africa is evolving positively, and that the situation of resource-rich African states is not immutable. Available evidence suggests that Africa is emerging a new, more complex, participatory, and coordinated vision of NRM; a development that offers opportunities and possibilities for Africa to engage emerging actors especially in the global South.The article concludes that what Africa needs is an approach with a good fit to local realities, and an enhancement of individual and institutional capacities.

Keywords: Africa, Capacity Development, Governance, Natural Resource Management.

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.6


* Chief Executive Officer, Strategic Outlooks, Ghana/KM Consultant, AfDB, P. O. Box CT9049, Cantonments, Accra, Ghana, E-mail: kthanson64@yahoo.com

LAND GOVERNANCE AND LAND DEALS IN AFRICA: OPPORTUNITIES AND CHALLENGES IN ADVANCING COMMUNITY RIGHTS

Blair Rutherford*

ABSTRACT

This article examines the converging focus on “governance” by those donors and scholars who promote investment in land in Africa as well as by scholars and activists who criticize what they call “land grabs.” This focus on governance is particularly found in terms of understanding and assessing socio-economic consequences among the communities for the land deals, investment initiatives which have been accelerating on the continent over the last decade and longer. This article expands the concept of governance by examining how structures of authority and power are also involved in defining who belongs, or who has claims to belong, to these territories. It explores the topic of land deals and community rights through the conceptual lens of governance and belonging, the ability to be recognized as part of the community at various levels of action (including in terms of national citizenship). It starts with an examination of the recent increase in land investments in Africa, setting out its broad parameters, including public criticisms raised and some of the protests around them, and noting some of the key issues on which scholars have focused. In the next two sections, the article analyses these processes through the conceptual lens of governance and belonging as a way to bring out what the article proposes are key issues for assessing matters on community rights in regards to investments concerning natural resources in Africa, particularly over land. This analysis raises questions about those who uncritically promote Free and Prior Informed Consent as the solution to ensure “communities” approve any land deals.

Keywords: Land grabs, governance, Africa, community, politics of belonging

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.10


* Professor of Anthropology in the Department of Sociology and Anthropology, Carleton University, Ottawa, Canada

CHINA’S INFLUENCE IN AFRICA: CURRENT ROLES AND FUTURE PROSPECTS IN RESOURCE EXTRACTION

Liu Haifang*

ABSTRACT

In the second half of 2014, some African countries felt the heavy strike of falling prices of mineral resources on the world market. The international media raised vocalex positions on the negative impact that China’s slow down might bring to the African economy. One headline read: “Chinese investment in Africa has fallen 40 per cent this year – but it’s not all bad news”.1 More recently, the exasperation intensified to “China’s slowdown blights African economies”,2 and managed to shadow the China-African Summit held in December 2015 in Johannesburg. Similarly, on the recent Africa Mining Indaba, the annual biggest African event for the mining sector, the renewed concern was stated as “Gloom hangs over African mining as China growth slows”.3 There is no doubt that China’s presence has had positive effects on Africa’s growth over the past decade. Nonetheless, only a narrow perspective would view Africa’s weak performance solely through the Chinese prism. This article addresses the afore-mentioned concerns regarding the impacts that China has in Africa. A historical approach is applied to reconstruct the economic cooperation since the mid-1990s. This reconstruction emphasizes the sustaining forces of cooperation. Literally, this article goes beyond the resource traction sector, to understand the basis of China-African cooperation, and the position mineral resource has taken in the bilateral cooperation. With a representative country case study, the current dilemma is shown from the structure of bilateral cooperation. Suggestions follow on how to address these challenges.

Keywords: China, Africa, mining, resource, investment, development.

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.3


* PhD (Peking), Associate Professor, Deputy Director and Secretary General of the Centre for African Studies, School of International Studies, Peking University, China. Email: liuhaifang@pku.edu.c

TRANSNATIONAL INITIATIVES TOWARDS NATURAL RESOURCE GOVERNANCE IN AFRICA POST-2015

Timothy M. Shaw*

ABSTRACT

The 21st century is marked by a welcome proliferation of innovative forms of natural resource governance to advance sustainable development. This article sheds light on the background for this quite remarkable and unanticipated shift. It analyses the prospects for AMV advocacy and adoption by emerging state and non-state actors by the end of this decade, both in Africa and beyond. It examines these evolving perspectives and debates vis á vis 21st century globalization. It also identifies the unexpected and unprecedented range of transnational governance initiatives that have been proposed since the turn of the century. These continue to proliferate and compete, being refined in the process as the problematic notion of global governance continues to be a subject of considerable debate. It also extends the range of developmental challenges to include the burgeoning water-energy-food nexus.

Keywords: governance, Africa, economy, development

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.9


* PhD, Princeton, is visiting professor at University of Massachusetts, Boston and Adjunct Professor at Aalborg, Carleton University, and University of Ottawa. With degrees from three continents – University of Sussex, Makerere University and Princeton University – he has held visiting positions in China, Japan, Nigeria, South Africa, United Kingdom, Zambia and Zimbabwe as well as in Canada and the US. He continues to edit IPE Series for Palgrave Macmillan/Springer and Routledge.

EXTRACTIVE RESOURCES, GLOBAL VOLATILITY AND AFRICA’S GROWTH PROSPECTS1

Elias T. Ayuk* and Rebecca A. Klege**

ABSTRACT

Africa is endowed with an incredible amount of natural resources of which the extractive sector is a key component. Unfortunately, however, the continent is characterized by a paradox of plenty or resource curse, depicting a situation of abundant resources that have not translated into economic growth and prosperity for the population. The potential role of the extractive sector is further affected by global volatilities. This article reviews the importance of the extractive sector to selected African countries. It identifies sources of global volatility that affect the sector and further attempts to establish the factors that drive the volatility-growth nexus. We use panel data covering 18 selected African countries from 1970-2013 to explain the gross domestic product (GDP) growth. Volatility persistence estimates are also calculated. The article further examines the policy space that African governments might consider to make the extractive sector play a major role in the development of the continent. We find that the extractive sector makes a huge contribution to GDP of the selected countries. The empirical evidence also indicates that 12 out of 18 countries find it difficult to adjust their economies back to equilibrium when hit with volatility shocks or changes in the volatility of GDP growth.

Keywords: economic diversification, extractive sector, growth, natural resources, resource curse, volatility

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.11


* Director, United Nations University Institute for Natural Resources in Africa, Accra, Ghana.

** Doctoral candidate, School of Economics, University of Cape Town, South Africa.

1 The views expressed in this chapter are those of the authors and should not be attributed to their affiliated institutions.

THE ROLE OF THE STATE AND THE TRANSNATIONAL IN LIFTING THE RESOURCE CURSE

Karolina Werner*

ABSTRACT

In the past, natural resources such as coal and iron ore were catalysts for development and the economic theory focused mainlyon how the exploitation of natural resources could promote trade and development. Since the 1970s, however, we have been increasingly confronted with resource-rich countries lagging behind in economic growth and facing high risks of violent conflict. Using Sierra Leone as a case study, this article briefly explores the resource curse paradox, noting the role of the national government and international actors in maintaining the status quo. It highlights the fragile state of postconflict governments, focusing on the delicate balance between attracting foreign investment and fighting corruption and poverty in environments already susceptible to recurring violence. The article further examines both government and private sector activities that have contributed to the economies of violence through unequal distribution of natural resource rents and revenues. It also argues that to move from resource curse to resource blessing, both the affected states and the international community need to refocus their attention on the effectiveness of returns on natural resource revenues and the critical role of transnational corporations in perpetuating the curse.

Keywords: Sierra Leone, resource curse, TNCs, natural resources, postconflict states

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.13


* Theme Leader, Conflict, Security, and Natural Resources, Institute for Natural Resources and Sustainable Development; Researcher, Centre on Governance, University of Ottawa, Canada; PhD Candidate, Global Governance, Balsillie School of International Affairs, Wilfrid Laurier University, Canada.

TOWARDS A FLUID AND MULTISCALAR GOVERNANCE OF EXTRACTIVE RESOURCES IN AFRICA1

Cristina D’Alessandro*

ABSTRACT

Political geographies of oil investigate extractive value chains with an emphasis on governance and scales, analysing the role that territories and especially spatial networks play in these dynamics. While underlining the limits and gaps of territorial governance, as it is nowadays theorized and used in the academic literature, extractive resources, particularly in developing contexts, call for fluid networks, and multiscalar governance; more flexible and adapted to changing contexts. This approach leads to networked justice, as a consequent adaptation of spatial justice to these specific situations. This article points out, for instance, the geopolitics of pipelines in Africa and its critical role in transforming the continent, despite its related challenges and conflicts. It advocates a better governance of extractive resources in Africa. Scholars have a role to play in this process, helping to analyse critical phenomena and sensitive dynamics, as well as provide sound policy recommendations.

Keywords: Extractive resources, sub-Saharan Africa, territorial governance, political geography, justice.

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.14


* Senior Fellow, Centre on Governance, University of Ottawa, Canada.

1 This paper is part of the Qatar Foundation’s National Priorities Research Programme – NPRP 6-1272-5-160.

EVALUATION OF THE LEGAL FRAMEWORK FOR PROMOTING SUSTAINABLE DEVELOPMENT IN THE EXTRACTIVE HOST COMMUNITIES IN NIGERIA

Bethel Uzoma Ihugba* and Sergius Nnamdi Okoro**

ABSTRACT

The extraction of oil and mineral wealth has some environmental, social, economic and political impact on the host communities. In many instances these communities do not derive any sustainable developmental benefit from the wealth extraction activities in their area and where they do, it is less than the magnitude of harm suffered. This has contributed to conflicts between government and host communities, and between host communities and mining companies. This suggests that either there is no legal framework for extractive industry host community development or they are weak or not applied. In Nigeria, existing legal framework includes revenue allocation formulas between the Federal and State Governments, the establishment of bodies like the Niger Delta Development Commission, and enactment of laws like the Nigeria Minerals and Mining Act (NMMA) 2007, the Nigeria Extractive Industry Transparency Initiative (NEITI) Act 2007 and the proposal of the Petroleum Industry Bill 2012 and the recently passed Petroleum Industry Governance Bill 2016. However, despite this framework, contentions persist and there is sparse evidence of sustainable development in host communities to counter some conclusions of ineffectiveness. This article, therefore, examines some of the legal framework to determine their contribution or otherwise and potential towards sustainable host community development.

Key Words: Extractive industry, local host community development, Nigeria, petroleum industry, sustainability.

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.15


* LLB, LLM, PhD, BL, Research Fellow, National Institute for Legislative Studies, National Assembly, Abuja, Nigeria. Correspondence email: bethelihugba @yahoo.com

** LLB, LLM, BL, Research Officer, National Institute for Legislative Studies, National Assembly, Abuja, Nigeria.

ECONOMIC RELATIONS BETWEEN TURKEY AND AFRICA: CHALLENGES AND PROSPECTS

Elem Eyrice Tepecikliogu*

ABSTRACT

African affairs occupied a secondary status in Turkish foreign policy until very recently. However, following the adoption of the Action Plan for Opening up to Africa in the late 1990s, Turkish politicians started to assign a higher priority to relations with African countries. The incumbent Turkish government now attaches great importance to developing long-term relations with those countries. We can also see that Africa’s image in Turkey is changing with journalists presenting new narratives about the continent and supporting Turkish involvement in African affairs. There is also an increasing interest in African studies in the academia, although scholarly work produced on African issues remains limited. This study explores the evolution of Turkish-African relations and concentrates mostly on Turkey’s economic engagement in African countries. It also seeks to analyse recent Turkish initiatives in Africa’s energy sector. The article argues, among other things, that although the low level of attention paid to African issues has changed, the pace of the development of relations with Africa is still slow and more steps have to be taken to further improve relations with African countries.

Keywords: Turkey, Africa, Sustainable Development

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.2


* Department of International Relations, Yasar University, Turkey. E-mail: elem.eyrice@gmail.com

SUSTAINABLE DEVELOPMENT OF NATIONAL ENERGY RESOURCES: WHAT HAS INTERNATIONAL LAW GOT TO DO WITH IT?

Catherine Redgwell*

INTRODUCTION

It is particularly apt to be addressing the sustainable development of energy resources before this august audience. As Professor Omorogbe states in her welcome address, the ILA Nigerian Branch Committee, under the auspices of which this Third Annual Conference is organized, replicates the international committee at national level. Indeed, the topic of “Legal Aspects of Sustainable Development” has been the subject of ILA study since the International Committee on the Legal Aspects of the New International Economic Order reconstituted itself as the International Committee on Legal Aspects of Sustainable Development at the 1992 Cairo ILA Conference.1


* BA (Hons), LLB, MSc, Chichele Professor of Public International Law, Fellow of All Souls College, and Co-Director of the Oxford Martin Programme on Sustainable Oceans, University of Oxford, United Kingdom.

1 ILA Report of the Sixty-Fifth Conference (Cairo, 1992), Resolution 12. The Committee was headed by Kamal Hossain (Bangladesh) with Nico Schrijver (Netherlands) as General Rapporteur. Illustrating the complexity of the subject, the Committee immediately established three subcommittees on protection of the environment, good governance and the international economic order, respectively: Report of the Sixty-Sixth Conference (Buenos Aires, 1994) p. 135. Sustainable development was also one of the principles examined by the ILA Committee on the Legal Principles Relating to Climate Change.

LABOUR AND EMPLOYMENT CREATION WITH AFRICAN RESOURCE DEVELOPMENT

Franklyn Lisk*

ABSTRACT

Natural resources are an assured source of government revenue, but this does not always translate into more jobs, better productivity or an increased demand for that country. Traditionally, the role of government in a resource-rich country has always been to act in the best interests of its citizens. In the case of natural resource-rich nations, this role also includes ensuring that jobs in the extractive sector are safe – both in the physical and financial sense. In such competitive environments, the private sector also has a fiduciary responsibility to ensure that all employees are fairly treated. However, it is evident that almost all African nations that are rich in resources are affected by lack of human development. This article examines the current state of affairs in the resource-rich African nations and their impact on human development. It focuses on how these resource-dependent economies are experiencing economic growth and why this growth does not directly translate into higher and better employment for the local populations. The article examines growth and human development from the perspectives of both the private- and public-sector actors. It recommends that private actors should have a complementary approach, through foreign direct investors or other modes, to the long-term policies and plans set out by the state. This approach would allow for successful intersectoral linkages and community development through higher job creation. It argues that the state is responsible for managing these natural resources and highlights the role of governance in this management. Governance issues, challenges, such as developmental gains, job creation, transparency and accountability are all addressed in the article. Finally, the article strongly recommends developing both human and institutional capital and regulating production.

Keywords: Resource development, resource curse, Africa, governance, management.

DOI: https://dx.doi.org/10.4314/jsdlp.v8i1.12


* Professorial Research Fellow, Centre for the Study of Globalization and Regionalization (CSGR), University of Warwick, UK. Email: f.lisk@warwick.ac.uk