-Experts weigh on continent’s persistent resource mismanagement
Being home to rich yet precious natural resources, that worth trillions of USD and feeds the engines of Western development, Africa still and paradoxically faces a troubling reality of hunger and deprivation. This grim situation according to experts is byproduct of colonial legacy and long lingering dilemma, in which the continent must overcome despite the complexity of the problem.
Every year, the continent’s precious minerals like diamond and gold are either smuggled or plundered by a collusion of internal and external actors and make their way to black markets sold in millions of dollars. Yet, many find contradictory that the continent replete with rich resource has been living through aid or handouts from the west.
For example, according to 2024 reports of United Nations Environment Programme (UNEP) that annually, illegal extraction and smuggling of resources like gold, timber, and wildlife products from eastern DRC are valued at USD 0.7-1.3 billion. This revenue supports 8,000 armed fighters and finances 25 groups, threatening regional stability. Additionally, Africa faces a 50-100 billion USD economic loss each year due to such exploitation.
Yet again, the continent has been formally exchanging its sparkling minerals with low values. Africa is a major supplier of raw materials to Western countries, which utilize these resources to fuel their economies. Hence, African nations exported valuable minerals for westerns by cheap prices. Like diamonds, gold, and other minerals, processing them into high-value products. In contrast, Africa predominantly imports finished goods by expensive prices.
While Western nations have significantly benefited from Africa’s raw materials, the continent itself remains plagued by hunger and poverty, despite being the rightful owner of its wealth.
According to a 2023 study published by the African Development Bank, Africa loses approximately 88 billion USD annually due to the export of its valuable resources to Western countries. The research further indicates that around 60% of materials imported into African countries are fabricated products from Western nations.
Some experts highlighted that the legacy of colonization affects the continent till this day with many nations struggling to overcome its enduring impacts. The continent faces ongoing challenges from neocolonialism, complicating efforts to achieve true independence and sustainable development.
Having stay with The Ethiopian Herald, Peace Building Expert Geleta Simeso (PhD) mentioned that the root cause of this paradoxes resources exploitation that many African nations endured during colonization, when European powers extracted resources for their own benefit. This legacy has left deep scars on the economic and social frameworks of these countries.
Geleta stated that this sharp contradiction is often marked by the smuggling of precious diamonds, particularly from Central Congo and other resource rich countries. “Due to the developed nation intervention, these minerals desired on the international black market, command exorbitant prices, yet the profits often fail to benefit the very nations from which they are extracted. Instead, these resources are tapped off, leaving local communities in a cycle of poverty and dependency on foreign aid,” he said.
On his part, African Change for Interaction and Think Tank General Director, African and foreign Affairs Policy Researcher Worku Yakob (PhD) emphasized that the failure of African leaders to engage all segments of society in the economic and political arenas is a critical issue. “This lack of inclusivity not only stifles local empowerment but also paves the way for Western nations to exploit Africa’s resources with relative ease, he said. The absence of a united front among African countries makes it increasingly difficult to negotiate fair terms or protect local interests.”
In similar vein, Federal TVET Institute Lecturer and Academic Researcher and ETH University Switzerland on Horn Africa Issues fellow Daniel Worku highlighted the greed among African leaders, claiming it has resulted in the underutilization of the continent’s vast resources.
He further stated that weak governance, rampant corruption, and a lack of transparency hinder effective resource management, resulting in misallocation and minimal benefits for the general population.
Worku stated that the rise of militant groups in Africa complicates the situation further. In their quest for weapons, these groups often resort to selling Africa’s treasures such as gold, diamonds, and other valuable minerals at significantly reduced prices to foreign buyers. This illegal trade not only undermines the continent’s economic stability but also fuels a cycle of violence and exploitation, he said.
He noted that the problem is not solely with militants; it extends to the leaders of African nations, who often act as agents for the interests of developed countries. For instance, while Africa exports precious minerals, it simultaneously imports high priced manufactured goods, that are creating an imbalanced economic relationship that disadvantages local economies.
Daniel pointed out that African nations must take responsibility for their resources and implement strategies to ensure their sustainable use. He also underlined that regional organizations need to play a pivotal role in fostering peace and resolving conflicts among citizens, as instability often hinders development efforts.
Moreover, the experts stressed the importance of empowering local communities to leverage their natural resources effectively. By fostering education and promoting responsible practices, African citizens can begin to utilize what nature has provided more wisely.
