Africa: Resource Dependence & Path to Economic Sovereignty

BY Dr. Arikana Chihombori-Quao

Africa’s Untapped Potential: A Continent Rich in Resources

Dr. Arikana Chihombori-Quao raises a crucial question about Africa’s resource dependence: why is Africa, a continent overflowing with resources and the backbone of global industries, consistently portrayed as the poorest? She asserts that the narrative needs a fundamental shift towards economic sovereignty. The reality, according to Dr. Chihombori-Quao, is that the world is deeply dependent on Africa’s resources, not the other way around. Africa possesses the inherent capacity to flourish, and the global economy would face significant disruption without its contributions.

Consider the Democratic Republic of Congo (DRC) as a prime example. A halt in its export of coltan, a critical mineral used in electronic devices, would trigger widespread economic repercussions globally. However, instead of capitalizing on this immense potential, many efforts are diverted towards issues that do not foster advancement. The focus, Dr. Chihombori-Quao suggests, needs to be redirected towards ending the exploitation of Africa’s vast wealth. According to a 2023 IMF working paper, Diversification and Structural Transformation in Resource-Rich Economies, structural transformation and policy frameworks are essential to reduce resource dependence ( https://www.imf.org/en/Publications/WP/Issues/2023/03/10/Diversification-and-Structural-Transformation-in-Resource-Rich-Economies-530077 ).

Reclaiming Economic Power: Ending Exploitation

The time has come to prioritize what truly matters—ending the exploitation of our wealth. France, for instance, allegedly siphons off $500 billion annually from Africa [Source needed]. Imagine the shift in global power if we collectively declared, “No more.” Africa is not the region that deserves the label of “developing”; perhaps nations like France should bear that title instead.

The call for economic sovereignty is not merely a matter of pride; it is a strategic imperative for the continent’s future. The current model, where Africa’s resources are extracted and processed elsewhere, leaves African nations with a fraction of the value they create. By investing in infrastructure, education, and technology, African nations can begin to process their own resources, creating jobs and wealth within the continent. This shift would not only improve the economic well-being of Africans but also strengthen their negotiating power on the global stage.

Reclaiming resources and asserting power are vital steps in redefining Africa’s narrative. This involves a fundamental shift in how Africa engages with the global economy. It requires strategic investments in key sectors and a unified stance against exploitative practices. Only then can Africa truly control its destiny and reap the full benefits of its abundant resources.

The Path to Economic Sovereignty: Intra-African Trade and AfCFTA

Furthermore, fostering intra-African trade is crucial for achieving true economic independence. By reducing trade barriers and promoting economic integration, African nations can create a larger and more resilient market for their goods and services. This would significantly reduce dependence on external markets, fostering greater self-sufficiency and creating opportunities for African businesses to grow and thrive. The African Continental Free Trade Area (AfCFTA) represents a significant step in this direction, but its ultimate success hinges on the unwavering commitment of African governments to effectively implement its provisions. The World Bank highlights the potential of AfCFTA to boost intra-African trade and reduce dependence on external markets (https://www.worldbank.org/en/research/publication/the-african-continental-free-trade-area-economic-and-distributional-effects).

Increased intra-African trade will not only boost economic growth but also foster greater collaboration and unity among African nations. This collaborative spirit is essential for addressing common challenges and building a stronger, more prosperous continent. By working together, African nations can leverage their collective resources and expertise to achieve shared goals and create a brighter future for all.

Investing in education and skills development is also paramount. A skilled workforce is essential for driving innovation, attracting investment, and competing in the global economy. By prioritizing education and training, African nations can equip their citizens with the tools they need to succeed and contribute to the continent’s economic transformation.

Conclusion: Africa’s Future in Its Own Hands

Dr. Chihombori-Quao’s message serves as a potent reminder that Africa’s future rests firmly in its own hands. By prioritizing economic sovereignty through strategic investments, empowering its people, and fostering robust intra-African cooperation, the continent can unlock its immense potential and emerge as a dominant force in the global economy. The time for decisive action is now, and the onus is on African leaders and citizens alike to collaboratively build a brighter and more prosperous future for generations yet to come.