Africa is endowed with vast natural resources like gold, diamonds, bauxite, oil and several others yet it remains the continent with the poorest people.
Nigeria's Oil Conflicts
From the oil-rich regions of Niger Delta in Nigeria to the diamond-filled soils of Tshikapa and Yusufu in the Democratic Republic of Congo (DRC), the story has been conflicts and under-development. While governments and Multinational oil and mining firms continue to make huge profits for the benefit of a few shareholders, the suffering masses of the oil and mineral-rich lands continue to struggle for development. Nigeria's oil conflicts continue and hundreds continue to loose their lives and property every year.
Optimists would be quick to cite the case of Johannesburg in South Africa as an African modern city built from the wealth of gold. But a quick look at the poor state of other mineral-rich towns such as the gold mining towns of Obuasi, Tarkwa and Prestia in Ghana or the diamond-rich towns of Koidu in Sierra Leone and Dimbi in Central Africa Republic, makes it unenviable to be a mineral-endowed community in Africa.
In countries like Sierra Leone, DRC and Angola, citizens of mineral-rich areas have not only suffered poverty, several have lost their lives and property as a result of conflicts over the control of diamonds. The situation leaves no hope for children in Africa and the Third World as whole. UN embargoes on diamond trade in such countries in the past have only resulted in the adoption of fraudulent trade tactics and cruel mining methods by gangs.
Ghana’s Oil Find
Though the West African Country of Ghana has not made much out of its rich mineral resources, it has avoided mineral-related conflicts since its independence in 1957. The country’s inability to improve the lives of its citizens through the wealth of its vast gold, bauxite, diamond and other natural resources, has left many wondering if the new oil discovery should be a source of joy for Ghanaians.
On June 18, 2007, the Ghana News Agency (GNA) reported that Kosmos Energy, Anadarko Petroleum and Tullow Ghana Limited, which were engaged in oil exploration in Ghana, simultaneously announced the discovery of oil in commercial quantities in the West of Cape Three Points, offshore Republic of Ghana.
Oil Discovery and Expectations
Since the announcement of the oil discovery, expectations among Ghanaians have been high and expectedly so, because political leaders have painted a picture of ‘a honey and milk Ghana’ that will soon replace the resource-rich but poor 52-year-old Ghana, just when the oil begins to ‘flow’ in 2010. And again, the International Monetary Fund (IMF) has predicted that Ghana can generate US$20billion from its oil and gas find over a production period of 18 years. This is supposed to be generated between 2012 and 2030.
Oil Revenues in Africa
African countries such as Nigeria, Angola and Algeria are members of the Organisation of Oil Producing Countries (OPEC) but unlike other OPEC members, citizens of these African countries remain poor mainly due to bad governance. The debate is ongoing as to whether Ghana can be a different case. Former Ghanaian president, John Kufour, in whose tenure the oil discovery was announced, pledged his commitment to a transparent and open management of oil revenues. Mr. Kufour affirmed his commitment with an announcement during a Ministerial Steering Committee on Oil and Gas that the management of oil revenues should be above all sectional interest. Current President, John Mills, has also made a similar pledge giving the hope that Ghana’s case will be different.
International bodies like the Revenue Watch Institute, says the decision by Ghana’s government to publicise oil contracts is a step in the right direction. While citizen groups and international financial institutions such as the International Monetary Fund and the International Finance Corporation have called upon countries to disclose such contracts, just a few countries have agreed to do so. There is therefore optimism that Ghana may be a different case.
