Keeping Africa’s natural assets from lining plunderers’ pockets
The link between illegal exploitation of natural resources and insecurity in Africa is complicated by layered governance weaknesses.
The 1 246th meeting of the Peace and Security Council (PSC) acknowledged that illegal exploitation of natural resources fuels conflicts, terrorism and violent extremism across the continent. The gathering explored ways of enhancing mechanisms, building on earlier concerns about the phenomenon, including the outcomes of the 16th Extraordinary Session of the African Union (AU) Assembly on Terrorism and Unconstitutional Changes of Government in Africa. That session called for concerted continental efforts to improve management of natural resources and prevent their use as a source of financing for terrorist groups.
Since then, however, there has been no discernible change, with prevailing situations across the continent persisting. This has often raised questions about AU’s commitment to addressing the issue and the extent of buy-in for existing mechanisms.
Scale of illegal exploitation
Africa’s illegal natural resource economy is difficult to quantify, not only because of its illicit nature but because of fragmented data focused on specific minerals or resources at particular locations and times. Therefore, a true picture of the volume of exploited resources such as minerals and precious stones, plants, wildlife, fisheries, energy and forest resources remains elusive. Understanding the extent to which these activities fund armed and terrorist groups is equally complex and multifaceted.
A true picture of the volume of exploited resources including minerals and wildlife remains elusive
However, examples provide a glimpse of the scale of the issue. The United Nations (UN) mission head in the Democratic Republic of Congo informed the Security Council this September that the M23 group generates a monthly average of US$300 000 in revenue. This it does in the country’s Rubaya area, where coltan is mined. A quick and dirty estimate puts the annual figure at US$3.6 million, sufficient to wreak havoc or to equip forces that play a spoiler role in any country. There are also reports indicating that in 2022, an estimated 435 tons of small-scale mined gold worth more than US$30 billion were smuggled out of Africa.
While not all of this ended up in the hands of armed groups, it highlights both the continent’s economic losses and the vast illicit exploitation economy. Part of the latter fuels insecurity through the activities of armed groups and violent extremists. The nexus between natural resources and insecurity in Africa, therefore, explains how some groups have become so powerful that they contend with the state. It also indicates why communities in resource-rich areas often clash with governments and why external actors are drawn into conflicts on the continent.
Heart of the matter
The situation is driven by what could be termed a ‘layered governance weaknesses challenge’ nationally, regionally and continentally. Part of M23’s revenue comes from taxing the existing natural resource economy in the areas it controls.
An annual illicit gain of US$3.6 million for a group like M23 is sufficient to wreak havoc
The group, and others in parts of the Horn of Africa, Central Africa and West Africa, also benefit from supplying illegally obtained resources through networks of smuggling routes. Here they are aided by porous regional borders, easy access to neighbouring territories and interface with complex criminal networks. These networks can convert minerals to money or supply the goods and services needed by armed groups.
This highlights the layers of the challenge Africa faces ― a lack of robust national oversight mechanisms, permissive regional transshipments routes, unaddressed transnational criminal economies and inadequate regulation in destination countries. The situation is worsened by the absence of buy-in for existing mechanisms against the acquisition, supply, trading and use of illegally exploited natural resources.
Addressing the problem
Untangling these issues requires coordinated, multi-level efforts to address local challenges, achieve regional consensus and tackle the international dimensions of the illicit resource economy. In confronting the local elements, states need to ensure that management and oversight of resources are grounded in good governance practices.
Strong and positive relationships should be built with host communities to prevent resource-driven conflicts. And fundamental regulations for effective exploitation of natural resources should be followed while safeguarding the interests of citizens.
Where conflicts exist, governments need to reinforce oversight of mineral-rich spaces to prevent their seizure, exploitation and use to advance conflict. While PSC policy engagements have centred on illicit exploitation in existing conflict areas, the Council must urgently consider situations such as Ghana and others where the scourge intersects with domestic political dynamics. Without timely interventions, such developments are bound to escalate, leading to larger crises for the PSC agenda.
Not much is known currently about the disposal of resources through the dark web
The international dimension has also to be considered. Frameworks include the Kimberley Process and the Organisation for Economic Cooperation and Development Due Diligence Guidance for Responsible Supply Chain Management of Minerals for Conflict-affected and High-risk Areas. There are also the Dodd-Frank Wall Street Reform and the Consumer Protection Act, the Extractive Industries Transparency Initiative and the Fairtrade and Fairmined standard for gold from artisanal small-scale mining. Others are the World Gold Council Conflict-free Gold standard, the Industrial Technology Research Institute Tin Supply Chain Initiative, the German Federal Institute for Geosciences and Natural Resources Certified Trading Chains scheme and the Conflict-free Smelter Programme. All aim essentially to create a sustainable, fair and conflict-free global resource economy. Strong buy-in for these mechanisms is crucial.
But that buy-in must be complemented by regional consensus on tackling situations in which neighbouring states are used to facilitate the transfer of ill-gotten natural resources. A loud call should go out to member states to make sure that their territories are not used by terrorists or the like in their interface with the illicit natural resource economy. The Council may need to consider a framework for monitoring compliance with this directive. Furthermore, continuous engagement with destination countries is essential to diminish demand for these resources and curtail aspects that benefit armed groups.
Most importantly, not much is known currently about the evolving nature of the issue, disposal of resources through the dark web and the nexus between armed groups and natural resources criminal organisations. Thus, continental deliberations need regular information. Annual deliberation on natural resources is paramount and should be accompanied by a report on the state of exploitation and conflicts in Africa.
