Africa’s Push for Fair Share of Natural Resources Wealth
For years, Africa has been at the mercy of foreign firms and corrupt local leaders who have exploited the continent’s mineral resources for their own gain. However, a new wave of leaders, both democratic and autocratic, are now demanding a greater share of the profits. Some are opting for diplomatic negotiations, while others are resorting to more aggressive tactics.
Multinational companies operating in Africa need to adapt quickly and find sustainable ways to collaborate with governments in sharing risks and revenues. Models like those seen in Norway and the United Arab Emirates, where taxes are high but partnerships are successful, can serve as a blueprint for the continent.
The concept of “decoloniality” is gaining momentum in Africa, driving youth protests, influencing military coups like the one in Mali, and shaping policy decisions in democratic nations. This ideology is particularly prominent in countries rich in oil, gas, and minerals, such as Namibia, Mozambique, and South Africa.
As a result of this shift in mindset, old and new mining contracts in countries like Botswana, Senegal, the Democratic Republic of Congo, and Zambia are being reevaluated and renegotiated to ensure a fairer distribution of wealth.
Source: Bloomberg
