IS AFRICA’S PROBLEM LACK OF RESOURCES OR MANAGEMENT?

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.

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