Introduction

The First Consultative Meeting on the Management and Exploitation of Natural Resources in Africa was held at the Indaba Hotel Conference Centre in the city of Johannesburg, South Africa from 1 to 4 March, 2005. Participants included 24 experts and practitioners from thirteen civil society organisations, five governmental departments and two international non-governmental organisations (See Annex A, Participants List).

Given the implications that governance of renewable and non-renewable resources has for continental peace, security and sustainable development, the objective of the consultation was to review links between uncontrolled exploitation and illicit trade in natural resources and conflict; discuss and define the status of strategic resources in Africa, and explore the need for a common African approach for responsible management of Africa’s renewable and non-renewable resources.

The meeting was divided into three working sessions which included:

a review of the links between resources and conflict;
a review of five key natural resources: minerals and energy, fresh water, marine resources, land, and timber. This was followed by an analysis of current practices and how they relate to conflict and further group discussions on priorities and processes leading to a common African position for the management, exploitation, defence and protection of these natural resources. Lastly, the group concluded with a set of recommendations on the way forward, emphasising the need for broadening and deepening discussions around this matter throughout Africa and beyond.

Summary of Panel Discussion

Case Studies: DRC & Niger Delta, NIgeria

Through the analysis of several case studies, the group obtained a good perspective of the relationship between easily accessible and poorly protected resources and the triggering, escalation and prolongation of conflict. The case studies focused on the DRC and Niger Delta, Nigeria but also touched on the case of Liberia (conflict timber).

In the case of the DRC, it was evident that the natural resources of that country are not being exploited for the benefit of the people or the development of the country for several reasons. The meeting identified and focused on problems associated with border controls; territorial administration and control; lack of governmental capacity to control and enforce regulations; corruption and poor governance; and the persistent management, exploitation, use, trade and movement of these resources by armed groups, paramilitary organizations, organized criminals, bandits, foreign actors and corrupt local officials.

It was clear that the chain linking the movement of these commodities from site to its ultimate destination was rife with middlemen, brokers, traders and buyers who were acting with impunity. The meeting further discussed the findings of the UN panel on the exploitation of natural resources in the DRC and expressed serious concern about the fact that the findings of this panel were not widely disseminated and have been embargoed for twenty five years, thus increasing the level of impunity upon which these agents operate.

The idea of creating an AU panel –mandated by the African Peace and Security Council- to investigate these dynamics and expand an understanding of them was deemed of interest so as to provide adequate information to the process of formulating a common African position on the management and exploitation of natural resources. The meeting also concluded that fair and equitable sharing and distribution of benefits is vital to ensure sustainable development in countries such as the DRC and others in similar situations. All of this needed to be underpinned by strengthening them institutional capacity of key sectors and the enhancement of human resources capacity in all aspects.

Further besides the well known exploitation of diamonds and coltan, it was brought to the attention of the meeting that copper, timber and tin were also being exploited illegally in the DRC.

With regards to Niger Delta, Nigeria, it was noted that this was indeed a microcosm of the relationship between peace, security and safety issues on the one hand and the economic dynamics of crime and conflict on the other. It was recognised that the dynamics associated with the exploitation of oil in this region of Nigeria was complex and compact encompassing almost all dimensions including money laundering, drug smuggling, arms trafficking, social and economic stagnation, under-development, ethnic tension, corruption as well as local and international organized crime.

There was also general agreement that the manifestation of the problem also had clear regional and international undertones, particularly with regards to the role played by local and international actors in facilitating arms smuggling in exchange for illegal oil bunkering and vice versa. In this regard the need for strengthening the capacity of officials and political institutions; promote public awareness and dialogue; develop programs for retraining those that wish to be demobilized or that wish to abandon armed banditry were identified. This together with the equitable sharing of the benefits accrued from the exploitation of this vital commodity and improved plans for community development could act as incentives for lasting peace, security and sustainable development in the region. In addition these had to be augmented by improved community, state and national cooperation to ensure the attainment of common goals.

In both cases, the meeting agreed that the mismanagement of natural resources was not only responsible for fuelling the conflicts but also lead to under-development. This was informed by the recognition that the existence of chaotic situations, where adequate controls are lacking, fits the interest of various actors wishing to operate in these territories with no accountability or transparency. This allows them the opportunity to ignore the regulations and best practices they engage in when operating in other more controlled territories and regions. It was further noted that the uncontrolled manner in which natural resources were exploited would depress the continent’s ability to ensure peace, develop basic infrastructure and bring about sustained socio-economic development. This would seriously jeopardise the attainment of the goals set out in the African Union’s socio-economic development programme, NEPAD.

to top

Review of Analysis of Africa’s Key Natural Resources.

Africa is endowed with rich biological diversity, abundant natural wealth that include: minerals, oil & gas, forests, fisheries, water, land and wildlife. The continent has the largest tropical rainforest and the second largest freshwater lake in the world. Instead, despite its abundant natural wealth, Africa remains the poorest continent and its people perpetually stark in abject poverty. This paradox, the group agreed, was central to the onset and duration of conflicts in Africa. Nevertheless, to broaden and deepen discussions around these contradictions, the meeting served as a platform for incisive deliberations on several key natural resources found in Africa. By looking at the social, economic and political implications arising from the management and exploitation of these resources; evaluating the strategic importance of each of these resources for Africa and the world; and examining the global dimensions of the problem as it pertains to peace, security and sustainable development in Africa; the meeting deepened understanding of the dynamics of the natural resources sector in Africa.

Minerals and energy: The meeting noted that Africa is a major producer and supplier of strategic natural resources and commodities used worldwide. It was emphasised that in the same way that minerals are important for the well-being of humanity so are minerals and oil to the economic health of a nation. However, it was argued that there are several factors that prevent Africa from managing its mineral and energy resources for the benefit of the African people and the sustained implementation of the AU agenda. Among these factors are: weak administrative and territorial controls; inefficient regulatory and legal frameworks, inappropriate fiscal and revenue management regimes, mismanagement, corruption and poor governance. It was pointed out that the cumulative effect of such an environment leads to instability which attracts rogue actors and international companies seeking to maximise profits and escape public scrutiny.

The meeting reiterated that the problem of the management and exploitation of mineral and energy resources in Africa should be understood better: firstly, it was emphasised that the problem is not the mineral or energy resource itself but rather the manner in which these resources are used, exploited and managed. Secondly, it was also pointed out that the manner in which these resources or the value thereof is shared was a key factor in the onset of conflict. In this regard participants agreed that possible solutions could comprise the a) generation of a Code of Conduct; b) the identification and listing of strategic minerals to be protected and handled under special regulations and controls; and c) strengthening of institutional and human capacity to ensure the effective and sustainable management of these resources based on a common African approach.

The meeting also acknowledged that the role of stakeholders in the use, management and valuation of these resources was fundamental to the manner in which the resource led to or obstructed African development. If Governments, non state actors, private industry and corporations, and the international community acted responsibly and within appropriate controls and regulations, the resource itself would lead to development and prosperity; whereas if these stakeholders did not act responsibly, the end result of the exploitation, movement and trade of these resources resulted in under-development and conflict. With regards to oil & gas, it was noted that given the fact that most of Africa’s oil is mainly found offshore, the continent is fast becoming a vital and strategic location to major oil importing countries, particularly due to increasing instability in the Middle East. While this was seen as an advantage, serious concerns were raised about Africa’s ability and capacity to effectively monitor and regulate the exploitation of this resource in the light of the continent’s inadequate maritime capabilities. The meeting expressed serious reservations about some of the practices utilised to attract foreign direct investment such as tax holidays etc.

to top

In this regard, a general view was expressed calling on African countries to evaluate and review such policies and practices. This position is informed by the recognition that while multinational corporations and investors stand to benefit considerably, such practices diminish the already limited revenue generating capacity of government, thereby, straining government’s ability to ensure social, economic and political stability. Furthermore, the meeting agreed that the use of strategic energy resources should take into account the fact that over 70% of Africa remains rural and under-developed. Consequently, the management and exploitation of this resource must factor in future demands and needs within the continent so as to ensure the uninterrupted provision of energy for manufacturing, basic infrastructure development and ensure acceptable minimum standards of living.

All of these would require the transformation and utilisation of large amounts of energy resources. Consequently, participants were also of the view that as Africa industrialises, the continent needed to take advantage of technological advances to extract maximum benefits from these resources as well as find alternative ways to reduce dependence on non-renewable resources such as oil and gas fuels. This in itself also requires urgent enhancement of the capacity within the continent in developing, managing and operating high technology alternatives. A possible solution would be the creation of hubs of technological excellence in Africa. Another important matter raised was the need to prevent environmental degradation and ensure sustainable development.

Freshwater resources: With the exception of the Congo River, which lies second in the world but dwarfs in comparison to the Amazon, Africa has very few big rivers. In addition as a predominantly arid region, where potential evapo-transpiration is greater than the average rainfall, water distribution throughout the continent is biased towards certain parts of the continent. For this reason, most disputes over water have taken place at the cross-over between wet and dry. Furthermore, the trend in Africa is for hotter and drier weather leading to more water stress in an exponential manner by 2025. Therefore, there is a need to look at water solutions through a paradigm shift away from the concept of watershed approaches to scarcity. The suggestion was to shift to the concept of problem-shed management. The group noted that water wars have not happened in Africa before, although micro disputes over this resource have occurred. The meeting came to the conclusion that water management issues lead not only to discussions on water sharing, thereby acting as dialogue generators, but also the discussion of benefit sharing which can be an important item to explore and manage in the future. It was on water that the meeting found the greatest ability to direct the management of natural resources in Africa to ensure that conflict is prevented. By looking at this resource it was clear that the ability to control and manage water disputes in Africa is proportional to the availability of alternative options in place for water management. It therefore is critical that the African alternatives and options in the management of its resources be increased to depress disputes and conflicts not only among Africans but between Africans and others.

Marine resources: Discussions regarding these resources generated tremendous concern among participants, since these not only depend on the African management of this resource for African benefit but also possess strategic value to other regions of the world. The meeting discussed the following: marine renewable resources pertaining to management issues (quotas and prevention of over-exploitation), protection of EEZs, the development of aqua culture and the need for more African research capacity on this issue; environment (ecology, environment and climate change); exploitation and defence of minerals in the sea bed (continental shelf, technology and competition for exploitation as well as defence of the EEZs); issues of pollution as more people migrate to coastal towns; the issue of the high seas (due to the use of high seas in hazardous transfers and transports, communications, militarization, etc).

In all cases the meeting noted that Africa is particularly weak in the management, protection, development and defence of its Marine resources. This affects not just what Africa can do for itself in the continent but also the manner in which Africa negotiates globally: the African voice is not heard internationally and therefore treaties and conventions seldom take note of Africa’s needs and inputs into the global debate. There was urgent need to create hubs of research and technology excellence on this issue in Africa; improve the technical capacity of officials negotiating international treaties; improve the capacity of Africa’s law enforcement agencies to detect, arrest and engage in due process; good management of the resource and the sustained increase in the marine resource itself. The ability to patrol and defend Africa’s territorial waters and economic exclusion zones is also of paramount importance.

to top

The meeting also identified the following threats to sustainable marine resources management, namely: poaching & money laundering; illegal, unregulated and unreported fishing as well as problems associated with drug smuggling and diamond mining. Other challenges revolved around concerns about the increasing loss of sovereignty over national waters and the linking of access rights by the developed world with development aid.

Land: The meeting noted that the problem is a complex one and is highly emotional. However, participants reiterated the centrality of land and resource rights in the struggle against poverty and underdevelopment. According to participants, problems associated with natural resources cannot be dealt with without addressing its intricate relationship with land. In fact, all natural resources whether underneath, on the surface or above are derived from land, hence the need for a deeper analysis and understanding of the land question in Africa. Furthermore, activities related with the exploration and exploitation of natural resources are all associated with some elements related to the issue of land. For instance, issues related to the right of access, ownership (not only of the land but also of all natural resources found in it), confiscation, forced removals, transfer of ownership etc have a bearing on peace, security and development. Not only is the land a source of dispute by its own right, but the matter is compounded by the discovery or presence of valuable natural resources. Under such circumstances, clashes arise because of two basic contradictions: that between customary and statutory law.

Given the emotional (identity, community and heritage) dimension of the problem, particularly with reference to customary law, the meeting was of the view that African governments need to find ways of reconciling both without sacrificing one over the other. Other components of the problem are those associated with rights, uses, values, maintenance, tenure and also pitches rural versus urban. Finally it was agreed that the dimension of the problem reaches the legal, financial, technical, commercial, social, and cultural spheres but should be separated from the emotional dimension. It also seems to have a generational dimension. In view of this, the emotional dimension of land should be explored to understand its root causes (security, legitimacy, identity) – this affects both individual and social psyches. The modes for action can include variations from nationalization to privatization passing through effective cooperative partnerships for the common good. This also demands greater inter-sectoral cooperation involving the different natural resources sectors.

Timber: Africa’s forests constitute more than 17% of the world’s forests. However, the continent’s forests face increased deforestation and degradation, having lost 66 million hectares between 1980 and 1995. Sixty-five percent of deforestation took place during the 1990s (UNEP 2002). This situation is further exacerbated by conflicts in the DRC, Liberia and other parts of Africa which made it possible for over-exploitation of these resources. The meeting noted two variations: conflict timber and illicit trafficking in timber. In this regard participants raised serious concerns about the role of ghost companies who seem to be involved in the illicit trade of timber. Another phenomenon that was highlighted was that of exchanging timber for arms. The complacency and impunity displayed by these companies and other actors in pursuing their objectives poses a major threat to the environment as well sustainable development. It was noted that companies operating in Liberia, for instance, were registered only for the purposes of extracting timber in Liberia and had no legal personality elsewhere. These were referred to as ghost companies.

Consequently, there was a general view that more clarity is needed in defining licit and illicit trade since there seems to be a strong correlation between the two. Discussions noted the need to call for the creation of an AU panel to highlight the problem and its dynamics and the need for Africa to set its own millennium development goals on this commodity as well as on others. The development of regulations and standards in the management of this commodity is paramount, as the culture of impunity on the management of timber needs to be reversed.

Summary of group discussions on current practices and possible minimum standards for the management and exploitation of natural resources

1. In the ensuing general discussion, the group reached some conclusions including the following general guidelines for action:

The value and the use of the natural resources must be considered simultaneously. By defining use of the resource for Africa and value of the resource to Africa standards can be put in place to benefit Africa’s own development and to generate prosperity. This should be addressed through the beneficiation, increased intra-African trade and exports. Therefore the group recommended that the discussion in future be divided into the general areas of “use” and “value”.
Strategic importance of Africa’s natural resources: discussions also focused on the strategic importance of Africa’s natural resources. In this regard, discussions had two dimensions: resources that are of strategic importance for the successful implementation of the African agenda; and those that are strategic by global standards. It was agreed that both dimensions must be considered in setting a definition of Africa’s strategic natural resources.
The ability of Africa to manage disputes over resource management and scarcity are proportional to Africa’s ability to provide alternative options for the management and the distribution of benefits derived from the exploitation of these resources. To prevent conflict in Africa caused by Africa’s rich natural resource heritage it is fundamental to increase the options available to Africa, therefore the development of alternatives (diversification and beneficiation) and human capacities is fundamental to peace, security and sustainable development in Africa.
The meeting felt that there were recommendations emerging that included the need for immediate action at international level; broadening and deepening dialogue at continental level; and the development of long term action focussed on enhancing institutional capacity to manage, regulate, control and resolve natural resource-based conflict.
Finally the meeting also identified the need for more in-depth research projects to inform a Common African Position on the management and exploitation of natural resources under the auspices of the African Union

to top

Key Recommendations

The 1st Consultative Meeting recommended that short, medium and long term solutions be investigated, including the following:

Greater cooperation and solidarity between Civil Society Organisations (CSOs), and communities, on the management of natural resources;
Stronger South-South co-operation, between organisations located in countries experiencing similar problems such as in South America, Asia and Africa;
Improved exchange of information between Civil Society Organisations and their respective governments.
Provision of specialised policy advise and information by expert CSOs to broaden support for common positions by African governments and add value to current government policies and engagements. (influencing policy)
Deepening of understanding of existing work in Africa and beyond on this issue and new information to be collected: a clearing house for this information that takes into account existing initiatives must be created.