New report urges Africa to address fragility through natural resources management

The African Development Bank Group (AfDB) and the Washington-based Environmental Law Institute (ELI) have produced a new report on natural resources management in fragile and conflict-affected countries. This flagship report examines how African countries in fragile situations can work towards addressing the causes and drivers of fragility by better managing natural resources across sectors.

The report, From Fragility to Resilience: Managing Natural Resources in Fragile Situations in Africa, delves into cross-cutting issues such as climate change, governance, private sector, regional integration, and conflict sensitivity. It also provides options for the design and implementation of natural resource-related programmes geared toward building the resilience of African countries.

“The report posits that fragility is a continuum, and many states that are not fragile experience tensions, localized conflict, and other pockets of fragility,” said Janvier Litse, the AfDB Vice-President for Country and Regional Programmes.

“Fragility spans a broad spectrum that is varied in geographic scope and frequency of conflict, ranging from declared hostilities between warring parties to established states that experience sporadic violence,” explained Sibry Tapsoba, Director of the Bank’s Transition Support Department.

The report is part of a series of initiatives carried out by the AfDB within the context of its Strategy for Addressing Fragility and Building Resilience in Africa for the period 2014-2019. This strategy aims to place the Bank at the centre of Africa’s efforts to address fragility and pave the way for a more resilient and inclusive development trajectory. It is based on an understanding of fragility as a condition of elevated risk of institutional breakdown, societal collapse or violent conflict.

The findings of this report will help the Bank to enhance its engagement with African countries in fragile situations, and reinforce its interventions in bridging the gap between natural resource management and development on the continent.

In supporting countries to improve their natural resource management for resilience, the publication will contribute to accelerating Africa’s sustainable development and meeting the critical needs of Africans through the implementation of the Bank’s top development priorities – the High 5s. They are: Light up and power Africa, Feed Africa, Industrialize Africa, Integrate Africa, and Improve the quality of life of the people of Africa. 

---

Overview

Introduction

Natural resources have the potential to catalyze transformative change in Africa. In the African Development Bank’s Ten Year Strategy (2013-2022), the Bank envisions the next decade as an opportunity for Africa to become the world’s next emerging market with growing internal and external demand for African products “if Africa can seize its potential in water, agriculture, renewable energy and other sectors, especially oil, gas and minerals.”

Natural resources, for the purposes of this report, include extractive resources (oil, gas, and minerals), renewable resources (arable land, forests, fisheries, and livestock), land, and water. They provide employment, food security, export revenues, and a basis for private-sector development. They are essential for basic services as many of them form the pillar on which local livelihood systems are built. They have cultural and social values. If managed inclusively and equitably, resource revenues can be the foundation for transformative change: when oil was discovered in São Tomé and Príncipe, the signature bonuses for nine offshore blocks constituted more than twice the country’s annual budget.

Nevertheless, many African states affected by fragility and conflict have struggled to leverage their resource wealth to realize practical development gains for their populations. Fragile states are still often hampered by widespread poverty, frequent conflict, poor governance, weak administrative capacity, high perceptions of corruption, and challenging climates for doing business – much of which relates to natural resource management.

This Flagship Report is the first to examine how fragile states in Africa can work towards addressing the causes and drivers of fragility by better managing natural resources across sectors. It is a reference for fragile states in Africa, Bank staff, and development partners that highlights key challenges, themes, opportunities, and approaches for managing natural resources in fragile states. Delving into key natural resource sectors, crosscutting issues, and programming approaches, it provides options for designing and implementing natural resource-related initiatives in ways that build resilience. This Report provides a broad vision drawing upon experiences to date; further efforts (such as checklists and resource-specific guidelines) are necessary to translate this vision into operational reality.

Recommendations and Next Steps

The sustainable management of natural resources is essential for fragile states seeking to improve economic growth, employment, good governance, basic services, and private-sector investment. The Bank’s Ten Year Strategy (2013-2022) places an emphasis on not only on “sustainable growth, but also [on] the sustainable management of natural resources” and it has identified fragile states as one of its three areas of focus in the coming decade.

Accordingly, this Flagship Report identifies ways that the Bank can further support fragile states in their efforts to build resilience through improved management of natural resources. This report has examined how the linkages between fragility, conflict, and natural resources sometimes necessitate natural resource management initiatives in fragile states to use approaches that differ from development approaches appropriate to other RMCs. Fragile states frequently require additional support or attention to development fundamentals that are universal to developing countries, but may require special attention due the challenges of state fragility. As one among the many development partners working with fragile states on natural resource management, a coordinated approach is needed to address unmet needs in each country. Thus, the bulk of the Flagship Report focuses on experiences and lessons for the broad community of fragile states and development partners.

The final section, in contrast, examines how the Bank can improve the way that it engages RMCs and development partners to leverage natural resources for resilience in fragile states. It emphasizes four priority opportunities: (1) mainstreaming natural resource management, conflict sensitivity, peacebuilding, and statebuilding in Bank processes, tools, and training opportunities throughout the program cycle; (2) using natural resource data collection, analysis, and management to build resilience and transparency in fragile states; (3) improving natural resource concessions; and (4) building fragile state capacity for natural resource revenue management.

If managed soundly, natural resources and their revenues have the potential to be a catalyst for resilience and sustainable economic and social development in fragile states in Africa. The Bank has a key role to play in promoting conflict-sensitive natural resource management projects that support peacebuilding and statebuilding in fragile states in Africa. In pursuing actions highlighted in the Flagship Report, fragile state governments, the Bank, and other development partners can more effectively and equitably manage natural resources and their revenues, laying the foundation for inclusive development, building resilience, and supporting the transition away from fragility.