14 November 2009
opinion
AFRICA'S natural and mineral resources place it in a position where it should not be entirely dependent on foreign aid inflows for its salvation. Blame for the continent's condition should rest squarely on its leadership's failure to negotiate investment ventures and trade agreements that serve the interests of their countries.
The rapacious greed of the continent's economic and political elite is partly responsible for Africa's dependency on aid despite its immense resources which are sought after by the rest of the world economies.
Two recent examples explain the tragedy that blights the continent. Last month the UK's Guardian newspaper exposed how Trafigura, a UK oil trader, shipped toxic petroleum by-products waste to Ivory Coast in 2006 and had the waste dumped -- not in some far flung corner of the West African nation but in 15 locations right in the capital, Abidjan.
Hundreds of residents of the capital have since developed life-threatening conditions. Sadly nearly 20 others perished as a result of exposure to the toxic waste.
Dumping of the toxic cargo could only have taken place with the connivance of greedy but well-connected elites. How else could such a scandal happen under the watch of the Ivorian authorities? Africa's leaders have decided to serve their own personal interests or have simply become agents of foreign interests.
The second example is found in Nigeria's oil-rich delta region. Ever since the days of Ken Saro-Wiwa, who was executed by the Nigerian government of Sani Abacha this month 12 years ago, the indigenous people of the delta region have questioned the benefits of the plunder of their oil resources.
Clearly the issue remains unresolved. That is why the Movement for the Emancipation of the Niger Delta is still pressing for benefits from the exploitation of the region to be accessed and realised by its inhabitants.
The fault lies with the governments and political leadership that allows or negotiates for the exploitation of the continent's resources in a manner that does not benefit the immediate inhabitants of the region or citizens of a particular country. The continent's brain drain has exposed the paucity of negotiating skills available to African governments.
It is this skills deficit that has resulted in exploitative financing arrangements that on paper appear appetising yet in reality turn out to be a bitter pill. Africa is contributing to the growth and development of other economies with minimal resultant benefits to its own.
Africa, it is said, is witnessing an increase in aid and that foreign currency remittances from its Diaspora have become a significant source of foreign exchange inflows. For example, last week China announced a multi-billion dollar aid package for Africa.
The figure appears significant, but on closer examination it is not much considering there are 50-odd countries on the continent. The amount is especially telling when considered against the backdrop of the continent's resources going either East or West. Aid therefore becomes nothing more than a sweetener or a diversion to keep the continent within the sphere of exploitation.
Zimbabwe has enormous mineral resources, key among them platinum, diamonds, gold, gas, cotton and horticulture. However, in negotiating exploitation of these resources and others, it is important to call on the assistance of experienced negotiators who can get the best deals -- for both the investors and Zimbabweans.
The negotiating skills are readily available and it's time African governments realised that when it comes to negotiating investment and trade agreements -- which are always complex -- there is need to tap into the available knowledge base in order to break out of the cycle of poverty.
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