The Politics of New African Resource Discoveries in the Post-Curse Era, Edited by Angela Zivo Gapa and Michael Ohene Aboagye. Published by Lexington Books – The Rowan & Littlefield Publishing Books (2024).
The Politics of New African Resource Discoveries in the Post-Curse Era examines the resource curse through the lens of recent resource discoveries. It sheds light on the evolving landscape of resource governance and its implications for African states, especially those whose institutional frameworks were not originally designed to manage substantial resource wealth.
First coined by Richard Auty 30 years ago, the term “resource curse” typically manifests in African nations that are abundant in point-source, non-renewable natural resources yet often experience lower rates of economic development, gross mismanagement, corruption, authoritarian rule and high conflict compared to their western counterparts with fewer natural resources.
Equally, the post-curse era is signified by countries deemed to be “resource-cursed”, overcoming the consequences associated with the curse by effectively leveraging their natural resource discoveries to achieve sustainable and inclusive economic development.
Featured resource discoveries include new economically viable hydrocarbon deposits in Kenya, Uganda, and Ghana; the development of offshore liquefied natural gas deposits in Tanzania and Mozambique that are reshaping the geopolitical dynamics and political economy of East Africa; and Ghana, Burkina Faso, Mali, and Guinea, with a combined gold output that reached 10.8 million ounces in 2023.
In the Sahel region, recently dubbed the “coup belt”, there is a strategic leveraging of gold and uranium wealth to engage alternative partners like Russia. Simultaneously, Zimbabwe seeks to focus on its lithium industry. With the discovery of the largest lithium reserves and mines in Africa, Zimbabwe now ranks prominently among leading lithium-producing and supplying countries, following in the footsteps of Chile, Australia, China, Argentina, and Brazil.
Additionally, the most significant potential in African resource politics over the next few decades is the development of rare earth minerals, also known as rare elements. Rare elements are a group of 17 chemical elements, including 15 lanthanides, plus scandium and yttrium, which hold significant potential in developing green energy technologies like electric vehicle batteries, solar panels, and wind turbines.
Amid these discoveries, due to the democratisation of information primarily through social media, there is a growing awareness among citizens and governments of the ramifications of the resource curse, fueling optimism that it can be addressed. This renewed optimism is reinforced by literature, which suggests that as societies and states democratise, their ability to buffer the resource curse is improved, as is the case in Botswana and South Africa.
The book features Tanzania as a key example of a nation that has avoided the resource curse in its natural gas sector. The discovery and initial exploitation of natural gas in the Swahili coastal regions of Tanzania raised hopes of transforming the agriculturally dominated and donor-dependent economy “into an industrialising middle-income country”.
To accomplish this, Tanzania addressed concerns regarding accountability and transparency by adopting a legal framework that ensured the democratic participation of community members in the governance of natural resources and empowered them to review natural resource contracts through the National Assembly. Similarly, a new law obliged the government to establish an oil and natural gas fund for future generations. To date, the framework remains the best legal regime for natural gas and oil in East Africa, despite being criticised for deterring investors and delaying investment in natural resources.
Secondly, Tanzania prioritised domestic natural gas needs and job creation by ensuring that the sector contributed to reducing unemployment and energy scarcity. Furthermore, promoting natural gas for domestic use will stimulate the growth of other sectors, specifically the agricultural sector, which employs the highest number of people in the country.
Thirdly, the sector sought a social licence to operate. The concept of “social licence to operate” stresses that natural resource producers must seek permission, consult with, and facilitate dialogue with stakeholders such as local communities (natural gas was discovered in historically economically vulnerable areas such as Mtwara, which borders northern Mozambique) to ensure the legitimacy of their operations.
As most African countries navigate the post-resource curse era, the book proposes a focused approach on four key paradigms informed by the experiences of both newly resource-rich and traditionally resource-rich countries:
Resource Nationalism involves nationalising resource industries, where the state assumes direct ownership or substantially controls resource extraction and production processes, and funnels the revenue into national development. Tanzania exemplifies this approach through its extensive mining sector reforms. As illustrated, the government has enacted key legislation to renegotiate contracts, increase its shareholding rights, and boost royalties on minerals and metals. Under the president’s oversight, Tanzania prioritises artisanal miners, revoking licences from multinationals like Barrick and Glencore, to open up land for small-scale mining.
Resource Liberalism advocates a free-market approach, emphasising privatisation, foreign investment, and minimal state intervention. This involves creating legal frameworks and institutions that promote good governance and fair trade of natural resources. A prime example is Botswana, which in 1969 forged a joint venture with De Beers to establish Debswana, securing a 15% stake and fostering shared decision-making and profit distribution. Botswana also prudently directed its diamond reserves toward infrastructure and education and focused on economic diversification to reduce dependence on diamond revenues.
Resource Diplomacy involves strategically leveraging a country’s natural resource wealth in its foreign policy. Two key frameworks proposed for developing countries are: non-alignment and regional cooperation. Non-alignment requires diversification to reduce vulnerability and increase flexibility in economic relations, while harmonisation strengthens bargaining power against powerful corporations and states. A notable example, featured in the book, is the partnership between the Democratic Republic of Congo (DRC), Zambia, and the European Union (EU), established at the Global Gateway Forum (2023), which agreed to closer cooperation on integrating raw material value chains, funding for development infrastructure, sustainable and responsible raw material production, and investment in research and development to facilitate green technology transitions.
Resource Decentralisation involves devolving control and decision-making authority to local stakeholders for shared benefits and sustainable management, aiming to empower marginalised communities. A successful example is South Africa’s Royal Bafokeng nation, which has directed profits from platinum deposits into a diversified investment portfolio, supporting social development initiatives for 150,000 individuals across 29 rural villages. As a recognised traditional authority, the community balances patriarchal and hereditary modes of governance that often surpass the political procedures of the state.
Conclusively, the book argues that the future of non-renewable natural resource management in Africa requires a multifaceted approach. The key lies in critically evaluating and integrating the principles of each paradigm. Moreover, robust governance structures, international cooperation and influence in the global political economy, and a commitment to sustainable practices are essential, given the complexity and challenges of the journey. This necessitates emulating synergistic policies applied by front-runners like Tanzania, which ensure resource revenues contribute to national development while promoting environmental sustainability and social equity.
This book is a must-read for researchers and practitioners in government, the private sector, and non-governmental spaces committed to addressing the complexities of African resource governance to inform policies that promote African agency in the global resource political economy and advance the well-being of both established and emerging resource-rich African societies.
Sarah Nyengerai is an academic and freelance writer based in Zimbabwe with a strong passion for social, cultural, economic and political issues that affect women. She believes literary works form the foundation for the dialogue required to sustain momentums of change and aims to bring attention to such matters. A member of NAFSA (Association for International Educators) and Forum for African Women Educationalists (FAWE), Sarah is actively involved in the advancement of education for women.
