Times Of Swaziland: AFRICA MUST REVERSE MINING RESOURCE CURSE

AFRICA MUST REVERSE MINING RESOURCE CURSE
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Editor on 12/03/2023 15:08:00


Madam,
African resource-rich States continue to suffer from the resource curse, a term
coined by scholar Richard Auty in 1993 to illustrate the confounding nature of
the relationship between natural resource abundance and underdevelopment. Since
the 1970s, there has been a correlation between natural resource wealth and poor
development outcomes in resource-rich countries. Some of the key manifestations
of the curse include corruption, widespread poverty, limited human development,
weak institutions, undermined freedom of expression and little transparency and
accountability.
change
In the context of climate change, which disproportionately affects low-income
and developing countries, reversing the resource curse is more critical than
ever. This can only be achieved by strengthening institutional quality and good
natural resource governance mechanisms. The most important element of sound
governance in this respect is to empower local people to play a key role in
decisions pertaining to extraction projects in their ecosystems. The conclusion
of COP27, the 27th iteration of the United Nations Climate Change Conference,
further cemented the need to bolster institutional quality and build strong
resource governance mechanisms to adapt to climate change and ensure energy
justice for all.  Despite significant progress since 1990, more than 600 million
people (nearly 60 per cent of the continent) still don’t have electricity.
To reverse the resource curse and ensure energy justice for all Africans,
radically improved environmental, social and governance (ESG) performance has
become increasingly important. At COP27, the global north’s responsibility for
climate change was not sufficiently recognised, while disunity among African
leaders to proactively deal with climate change effectively remains unhelpful.
African countries do face a double-edged sword, because those with fossil fuel
resources remain adamant that these should be exploited for development gain,
while doing so risks those countries being locked into development pathways that
crowd out renewable energy opportunities. To realise the latter, African
countries such as Zambia, Mozambique and South Africa must unlock investment
into exploring for and extracting critical minerals required, such as cobalt,
lithium, copper, platinum group metals, manganese, chrome, and nickel, both for
a global energy transition and to confront energy deficits at home.
combination
A combination of State-owned and multinational mining companies, such as Zambia
Consolidated Copper Mines Investment Holdings, TotalEnergies and Anglo American
in the respective countries have continued to show great interest in exploring
and extracting critical minerals. Unlocking this investment into African mining
will require stability, security and responsible supply chains anchored on
addressing environmental, social and governance risks in operating environments.
Moreover, ESG integration has become the cornerstone of attracting investment
and African governments should be geared towards creating a policy environment
that champions genuine ESG performance in the mining sector and curtails
green-washing.
While the African continent is positioning itself to benefit from the green
energy transition, the exploration and production of fossil fuels
controversially remains central to the development trajectory of several
developing countries. The global shift towards a green energy transition has put
Africa in an opportune position to meet the global demand for critical raw
materials required for moving away from hydrocarbon dependence and secure
economic development. But this requires decisive leadership that prioritises
energy security and socioeconomic development in a meaningful and sustainable
manner that benefits all people.
Busisipho Siyobi