Africa’s growing natural wealth still leaves many in poverty

Africa’s vast mineral and ecological wealth could lift millions out of poverty, but only if governments strengthen governance, share benefits fairly, and balance extraction with conservation, reported The Economist and other agencies on 23 October.

Governments, international institutions and conservationists all share a similar sentiment: natural riches should benefit everyone, not just a privileged few. Although Africa is rich in natural assets it still struggles with poverty, weak institutions and environmental degradation.

Analyses show that Sub Saharan Africa sits atop a large share of the world’s reserves of “critical minerals” for the green transition like cobalt in the Democratic Republic of the Congo and platinum and manganese in South Africa.

Studies show that many African governments earn far less from resource extraction than they could. In some cases, countries collect under 2% of their GDP in revenues from mining and oil which is far below their potential.

Wealth from natural resources also brings risks. Without strong oversight, extraction can lead to environmental harm, corruption, and economic dependence on a single sector, leaving many citizens no better off.

Experts tell The Economist that several reforms must align if Africa’s natural wealth is to serve the continent’s broader development goals. Among them is stronger governance and transparency. Economists and policy analysts argue that better contracts, tighter fiscal terms, and systematic monitoring of environmental and social impacts are needed to prevent extraction projects from enriching foreign firms or domestic elites at the expense of national development.

Another priority is greater community involvement in decision making. Conservationists stress that policies on land use, forests, and wildlife must include the people who depend on these ecosystems for their livelihoods.

As one expert told Mongabay, “Nature is everyone’s business … we must bring people together across sectors, cultures and economics” to ensure conservation and development move hand in hand.

There is growing momentum behind valuing natural capital alongside GDP. Economists warn that traditional measures of progress overlook the importance of ecosystems, biodiversity, and carbon storage. Valuing nature, they say, strengthens the case for protecting it rather than exploiting it unsustainably.

A key theme is conserving forests, biodiversity and ecosystems while ensuring local communities benefit. Conservation experts noted that local communities actually derive little benefit from nature based tourism or ecosystem services despite living right next to them. Those two challenges of ecological protection and inclusive development is worsening.

According to The Economist, the next decade is critical. As the global economy shifts [through the green energy transition], demand for Africa’s minerals and natural assets will rise, leading to larger opportunity but if African countries fail to capture that value or do so in a way that excludes large portions of their populations, the risk is that the riches will deepen inequality rather than reduce it.

However, a well managed natural wealth economy could deliver billions of dollars more per year in government revenue, foster industrialisation and create jobs.

Regional institutions have also highlighted the importance of linking environmental protection with economic planning. They argue that effective governance of natural assets can support employment, attract investment, and strengthen resilience against climate and market shocks.

Across the continent, observers say the central issue is not the presence of natural wealth but how it is managed. Many agree that transparent regulation, fair revenue distribution, and sustainable use of resources will be key factors shaping Africa’s economic future.

The Economist, Mongabay and other agencies, Maghrebi.org