Times Of Swaziland: IS AFRICA’S PROBLEM LACK OF RESOURCES OR MANAGEMENT?

IS AFRICA’S PROBLEM LACK OF RESOURCES OR MANAGEMENT?
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Bandiswa Vilane on 11/12/2024 15:14:00


AFRICA, a continent rich in natural resources, diverse cultures, and an
incredibly youthful population, stands at a crossroads in its development
journey.
Over the years, the narrative surrounding Africa’s economic challenges often
revolves around two critical perspectives: One that blames Africa’s
underdevelopment on a lack of resources, and another that suggests the
continent’s issues stem from poor management and governance. While these two
arguments have been fiercely debated, the answer is not so simple, or perhaps
both can be true?
Africa’s challenges can indeed be attributed to both its management and
resource issues. Africa is home to most of the world’s mineral reserves,
including gold, diamonds, oil and cobalt, as well as vast agricultural land that
is often underutilised. This makes the continent one of the richest regions in
the world in terms of natural resources. The narrative of Africa’s resource
problem often refers to the underutilisation and mismanagement of these vast
resources above anything else. Despite having significant reserves, many African
countries remain poor or underdeveloped. From an economic perspective, the idea
that Africa’s resources are insufficient is simply not credible. Africa has
the resources that should allow it to prosper, and yet here we are.
However, the problem lies in the challenge of utilising these resources
effectively and sustainably. This leads to the next argument: Management - poor
management. Poor management and governance are often pointed to as the root
cause of Africa’s economic and political problems. Corruption, misallocation
of resources, political instability and weak institutions are factors that
contribute to the continent’s underdevelopment.  Despite having abundant
resources, many African governments fail to manage these resources in a way that
promotes long-term prosperity. Africa’s management problem is further
exacerbated by the absence of strong institutions. In many countries, the legal,
financial and political systems are fragile, which makes it difficult to enact
policies that promote sustainable development.
Accountability
Poor leadership, lack of accountability, and a tendency toward autocracy or
nepotism at its finest are often seen as significant barriers to progress - you
must either know someone or be born ‘rich’. In some cases, foreign influence
and multinational corporations have also contributed to the mismanagement of
Africa’s resources by prioritising profit over the well-being of the people
and the environment. Everything has become a business. In terms of governance,
it is clear that a better management system can lead to more equitable use of
resources. While it is clear that Africa has vast resources, the continent’s
problems are not solely about the resources themselves but how those resources
are managed. The narrative that Africa’s problems are solely due to a lack of
resources fails to address the complex nature of the challenges faced by the
continent.
Effective management is essential to unlock the potential of these resources.
For example, consider the management of Africa’s agricultural sector. Africa
has 60 per cent of the world’s arable land, yet it remains a net importer of
food. This is largely due to inefficient agricultural practices, inadequate
infrastructure and insufficient investment in the sector. If African governments
and private sector actors were to manage the agricultural sector more
effectively, Africa could feed not just itself but much of the world. Thus, poor
management, rather than a lack of resources, can be seen as a central issue that
hinders Africa’s ability to thrive.
Additionally, Africa’s resource wealth can sometimes lead to the “resource
curse,” where countries rich in natural resources fail to develop because they
are overly reliant on extractive industries, leading to economic instability,
inequality and conflict. It is evident that Africa’s challenges cannot be
boiled down to either a management problem or a resources problem. The
continent’s wealth of natural resources provides a solid foundation for
development. However, without effective governance, transparent institutions,
and prudent management, these resources will remain a source of conflict and
inequality rather than a tool for progress. Both issues - resource abundance and
management inefficiencies - are intertwined, and solutions must address both
aspects. Governments must implement policies that ensure the responsible
extraction, management, and distribution of resources.
This includes investing in human capital, creating strong institutions and
fostering transparency to avoid the pitfalls of corruption—which has become a
rampant issue on its own. At the same time, Africa must ensure that its
resources are used to diversify the economy, promote education and build
infrastructure so that the continent can transition from resource dependency to
sustainable growth. Basically, Africa’s struggles lie in both the management
of its resources and the inefficient use of its abundant wealth. Solving this
dual problem requires concerted efforts from both African governments and
international partners to ensure that Africa’s natural wealth becomes the
bedrock for future prosperity, not a source of stagnation.