African states must improve the management of their natural resources for the benefit of their growing populations, according officials at the 8th African Development Forum.
Speaking at the event, which convened in Adis Ababa early this week, the African Development Bank (AfDB) Group Operations Vice President, Aly Abou-Sabba, noted that Africa was now in a position to accelerate the welfare of its citizens by creating wealth from natural resources.
"Africa is home to some of the world's largest deposits of oil and gas, gold reserves and strategic minerals, such as uranium, cobalt and bauxite, and has an undeniable comparative advantage in natural resources," Abou-Sabaa said.
"The challenge for the continent is how to govern and harness this rich pool of natural resources to achieve a broad-based growth."
He further outlined critical the need to change the continent's stereotype from being "resource cursed" to "resource blessed".
Africa must promote responsible investment for broad-based growth, strengthen governance for enhanced transparency and accountability, build capable and responsive states for human development and economic effectiveness," Abou-Sabaa added.
According to the UN Economic Commission for Africa (UNECA) Africa is home to three quarters of global platinum supply, half of the diamond and chromium, and one fifth of global gold deposits.
The continent is also a major supplier of cobalt, copper, iron and coal, and home to 60 per cent of the world's uncultivated arable land.
Despite such wealth, Africa neither consumes its minerals nor adds value to them before exporting them, as stated by the UNECA Executive Secretary, Carlos Lopes.
Outsiders continue to reap enormous benefits from Africa's resources; take for example the case of Glenocore, a Swiss company that mainly operates in the Democratic Republic of Congo and whose assets are worth more than those of DRC," Lopez said.
"All the inputs of the mining companies are imported and nearly all outputs are exported without processing, while the most important tasks are performed by expatriate labor."
According to Lopes, illegal fishing costs Africa US$629 million annually, which can cover the infrastructure funding gap of several countries.
The African Union Commission Chair, Nkosazana Dlamini Zuma, questioned Africa's economic growth, which according to her, is not translated into better welfare for the Africans.
"Africa is, today, among the fastest-growing regions in the world. How come the growth is not generating enough jobs for our people, especially the youth? How come the jobs our people have are low-level and poorly paid?" she said.
The Forum, which runs from October 23-25, is on the theme, "Governing and Harnessing Natural Resources for Africa's Development" and is attended by several participants including Heads of State and Government, private investors and representatives from international organizations.
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a The New Times