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    Resource-Rich Countries in Sub-Saharan Africa (Ssa) : OCTOBER 2014

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    This document identifies 27 Sub-Saharan African countries as resource-rich based on exports of oil, minerals, and metals accounting for over 25% of exports. It also identifies 4 additional countries that may soon become resource-rich. While natural resources contribute greatly to GDP, many countries have not converted wealth to development due to tax breaks, corruption, and ineffective governance. Improved policies, management, and redistribution of revenues could help countries achieve more inclusive growth.

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    Resource-Rich Countries in Sub-Saharan Africa (Ssa) : OCTOBER 2014

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    matijciogeraldine
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    This document identifies 27 Sub-Saharan African countries as resource-rich based on exports of oil, minerals, and metals accounting for over 25% of exports. It also identifies 4 additional countries that may soon become resource-rich. While natural resources contribute greatly to GDP, many countries have not converted wealth to development due to tax breaks, corruption, and ineffective governance. Improved policies, management, and redistribution of revenues could help countries achieve more inclusive growth.

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    This document identifies 27 Sub-Saharan African countries as resource-rich based on exports of oil, minerals, and metals accounting for over 25% of exports. It also identifies 4 additional countries that may soon become resource-rich. While natural resources contribute greatly to GDP, many countries have not converted wealth to development due to tax breaks, corruption, and ineffective governance. Improved policies, management, and redistribution of revenues could help countries achieve more inclusive growth.

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    13 views2 pages

    Resource-Rich Countries in Sub-Saharan Africa (Ssa) : OCTOBER 2014

    Uploaded by

    matijciogeraldine
    This document identifies 27 Sub-Saharan African countries as resource-rich based on exports of oil, minerals, and metals accounting for over 25% of exports. It also identifies 4 additional countries that may soon become resource-rich. While natural resources contribute greatly to GDP, many countries have not converted wealth to development due to tax breaks, corruption, and ineffective governance. Improved policies, management, and redistribution of revenues could help countries achieve more inclusive growth.

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    of 2

    RESOURCE-RICH COUNTRIES

    IN SUB-SAHARAN AFRICA (SSA) OCTOBER 2014

    Mauritania
    Mali Sudan
    Niger
    Eritrea
    Senegal
    The Gambia Djibouti
    Burkina Faso Chad
    Guinea-Bissau Guinea Benin Nigeria
    Côte Togo Ethiopia
    Sierra Leone d'Ivoire Central African
    Ghana South Sudan
    Republic
    Cameroon Somalia
    Liberia Uganda Kenya
    Equatorial Guinea
    Congo, Dem. Rep.
    Gabon (Kinshasa) Rwanda
    Congo, Rep. Burundi
    (Brazzaville) Tanzania

    SSA COUNTRIES CLASSIFIED AS


    RESOURCE-RICH IN 2010 BY IMF Malawi
    Angola
    NEW SSA RESOURCE-RICH COUNTRIES Zambia
    IDENTIFIED FROM 2012-13 DATA
    Mozambique
    EMERGING RESOURCE-RICH Zimbabwe
    SSA COUNTRIES Namibia
    Botswana Madagascar
    NON-RESOURCE RICH COUNTRIES

    Swaziland
    OIL AND/OR GAS PRODUCING COUNTRIES
    Lesotho
    POTENTIAL FOR OIL AND/OR GAS PRODUCTION South Africa

    Sources: National EITI reports, World Bank country profiles, UN Comtrade statistical yearbooks for 2012 and 2013, IMF data.

    NOTES
    The resource-rich countries are the driving force of the Sub-Saharan African
    (SSA) economy, and account for more than 80% of the total GDP of SSA1. The 1 Africa Progress Report,
    export of non-renewable natural resources from SSA has increased from US$56 2013, p.15
    2 World Bank 2013: Africa’s
    billion in 2002 to US$288 billion in 20122. In comparison, total official deve- Pulse vol. 8, p.9
    lopment aid to Sub-Saharan Africa was US$46 billion in 20123. We estimate that 3 OECD 2012: “Net disburse-
    ments of ODA to Sub-Saharan
    27 SSA countries can be classified as resource-rich in 2014, which is a signi- Africa by donor”. http://www.
    oecd.org/dac/stats/statistic-
    ficant increase since 2010; and four additional countries are likely to become sonresourceflowstodeveloping-
    resource-rich in the future. countries.htm
    RESOURCE-RICH COUNTRIES IN SSA

    The International Monetary Fund (IMF) defines a country to be ‘resource-rich’,


    when exports of non-renewable natural resources such as oil, minerals and
    metals account for more than 25 % of the value of the country’s total exports4.

    IMF has classified 20 countries in Sub-Saharan Africa as being resource-rich.


    This classification was based on data from 2005-2010, and included Angola,
    Equatorial Guinea, Congo Dem. Rep., Nigeria, Guinea, Gabon, Congo Rep.,
    Chad, Botswana, Zambia, Sierra Leone, Mali, Namibia, Niger, Cameroon,
    Zimbabwe, Tanzania, Ghana, Central African Republic and South Africa5.

    Based on the IMF definition, our analysis of data from 2012 and 2013 demon-
    strates that seven new countries can be classified as resource-rich countries
    today. The additional countries are the Ivory Coast (Côte d’Ivoire), Mauritania,
    Liberia, Burkina Faso, Sudan, South Sudan and Mozambique6.

    In addition, four SSA countries have prospects of becoming resource-rich in


    the nearby future. Whereas Uganda recently has begun exploration of oil, Ken-
    ya and Madagascar are still in the exploration phase.7 Malawi is expanding their
    extractive industries rapidly with exploration of oil, uranium and coal.

    OPPORTUNITIES AND RISKS

    The updated mapping of resource-rich SSA countries illustrates the increas-


    ing importance of and dependency on the extractive industry. However, many
    SSA resource-rich countries have been unable to translate the resource wealth
    into inclusive social development. Potential tax revenues tend to evaporate as
    NOTES
    a result of generous tax breaks granted by governments and aggressive tax
    planning by multinational corporations. Moreover, corruption, ineffective gov-
    4 IMF 2013: “Boom, bust, or prosper-
    ernance systems and the existence of a global web of tax havens are additional ity? Managing Sub-Saharan Africa’s
    barriers preventing revenues from natural resources from benefitting the vast natural resource wealth” p 6
    5 IMF 2013: “Boom, bust, or prosperity?
    population in SSA. Managing Sub-Saharan Africa’s natural
    resource wealth” p 6
    6 UN Comtrade statistical yearbook
    Governments, civil society and the private sector should jointly work towards 2013 for Ivory Coast, EITI Mauritania,
    EITI Liberia, EITI Burkina Faso, World
    (i) improved policies and enforcement of legal frameworks governing the ex- Bank country profiles for Sudan and
    tractive industries, (ii) more transparent and accountable management of re- Southern Sudan, National Bank of
    Mozambique annual report 2012
    venues, and (iii) efficient and democratic redistribution of revenues benefitting 7 KPMG 2013: ”Oil and gas in Africa”
    all parts of society. These three steps could assist SSA countries in turning and US Energy Information Admin-
    istration 2013: “Emerging East Africa
    natural resource wealth into inclusive social development, which would benefit Energy”
    all stakeholders.

    ABOUT THE AFRICA AGAINST POVERTY PROGRAMME


    Africa Against Poverty (AAP) is a regional advocacy pro- AAP supports a number of civil society organizations
    gramme focusing on extractive industries, fair taxation in Mozambique, Ghana and Sierra Leone, and collabo-
    and other emerging development challenges in Sub- rates with pan-African and European organizations and
    Saharan Africa. The programme was launched in 2004 networks. The programme is an important contribution
    with the objective of linking community concerns and to IBIS’ overall work for a just world in which all people
    voices with national and global policy responses. have equal access to education, influence and resources.

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