Natural Resource Governance in Africa

Abstract

The continent of Africa is one of the most richly endowed continents with natural resources that would have placed it on a world map as the most developed continent but not many countries have succeeded in turning the revenues from these natural resources to enduring economic benefits. This phenomenon often described as the “resources curse” has not only stalled development but has created such grinding poverty and socio-economic exclusions owing to lack of transparency, accountability and prudent use of these resources. This essay looks at the all-important issue of natural resource governance in Africa, it challenges, efforts at mitigating these challenges and possible recommendations. Findings show that the absence of proactive measures in managing these resources and insincerity on the path of leaders have led to gross mismanagement of natural resources. It has also led to high rate of corruption and over dependence on it in raising revenue for development purposes. The essay recommends that resource rich countries must invest into the future, build institutions and diversify their economy. One effective way to do it is the Sovereign Wealth Fund, keeping in mind the international best practices, also develop knowledge institutions, and cultivate a knowledge-based economy.