Are African countries aware of their own mineral wealth?

Zawya

4 days ago

Imagine running a business for over a century without knowing what's in your warehouse. That's essentially what many African countries are doing with their mineral wealth. Governments across the continent still have very little knowledge of what lies beneath their soil.
Between the 18th and 20th centuries, European colonial powers exploited African mineral wealth for their industrialisation. Post-independence, many African nations nationalised their mining sectors. International pressure led to privatisation in the 1980s. This weakened the motivation and capacity of governments to develop long-term strategies. They have more incentive to export minerals for foreign exchange in the short term.
As political economists, we have been researching the governance of Ghana's and Rwanda's minerals sectors for over a decade. We conducted research into why some African nations are investing more than others in geological investigations. These are studies that examine where minerals can be found and what their economic potential is. We focused on Ghana and Rwanda because of their different levels of commitment to investing in geological investigations.
We found that intense political competition forces Ghanaian governments to have short-term priorities. This makes geological investigations (a long-term, risky venture) unappealing to ruling elites. In contrast, the Rwandan Patriotic Front government has invested in geological surveys over the last decade.
Beyond economic and technical costs, context-specific political dynamics – interests, ideas and power relations – shape the decision to invest in geological mapping.
A mixed searchGhana is rich in several minerals and is Africa's largest producer of gold, which is its highest export earner. Minerals generated US$11 billion in revenue in 2024.
The country is also rich in diamonds, manganese and bauxite. It recently discovered lithium in commercial quantities. Lithium is a 'critical mineral' for the energy transition and this discovery will be of interest to investors.
Rwanda is a producer of tin, tantalum and tungsten. It also has commercial deposits of gemstones, silica sands, kaolin, vermiculite, diatomite, clays, limestone and gold.
Policy experts and international organisations often encourage governments to invest in geological mapping of their minerals. This is to enhance greater investment in the sector and boost the country's gains from its resources. But these investigations are costly and lucrative findings aren't guaranteed.
Some African governments have limited commitment to investing in geological mapping. Others, such as Uganda, Morocco, Botswana and South Africa, have put resources into it. For example, the Ugandan government announced its intention to expand national geological mapping coverage from 50 to 100 percent.
Ghana's lack of geological knowledgeThe roots of the knowledge gap stretch back to colonialism. European powers meticulously mapped African minerals, but kept the data for themselves. Today, the British Geological Survey holds over 300,000 geological reports and maps from other countries. Much of it is gathering dust in archives rather than helping African governments understand their own resources.
Even basic geological knowledge often sits in London, Paris or Brussels rather than in Accra, Kigali or Nairobi.
Take Ghana, which has been mining gold for over a century yet still lacks comprehensive geological surveys.
We found that the country's competitive political system, where power alternates between two main parties almost every eight years, stands in the way of long-term planning. Successive Ghanaian governments have relied on private mining companies to conduct geological investigations. There is limited monitoring of whether investigations are carried out before extracting minerals. This approach has obvious flaws. Firstly, companies may not share all their findings. Secondly, the government doesn't have control over information about its own resources.
We also found evidence of a darker political calculation. Through licensing, political elites are able to maintain lucrative relationships with mining companies. Comprehensive geological mapping might force more transparent, competitive bidding processes that could disrupt these arrangements. This includes vested political interests extending into the small scale and artisanal mining space.
Rwanda's different pathRwanda tells a different story. Since 1994, the governing Rwandan Patriotic Front has increasingly taken control of all aspects of the society. As part of this drive it has developed longer-term ambitions in relation to its development strategies.
The country has chosen to know more about what lies beneath its land and has taken steps to improve its capabilities.
Firstly, it revised its mining law. The Rwandan government had initially invited foreign mining companies to obtain permits on a first come, first served basis. Though permit holders were required to invest in geological investigations before extraction, there was limited monitoring of what firms were doing. This is similar to what was taking place in Ghana.
Secondly, the Rwandan government even established its own mining company, Ngali Mining, to invest directly in exploration.
Thirdly, it has attracted investment in geological surveys, with some support from donors. In this way, it directly employs geological investigation firms rather than relying on mining firms to invest in investigations themselves.
The results are impressive: between 2012 and 2016, the government attracted four different sets of North American and European firms to conduct extensive mapping studies.
Fourth, as a result of these surveys, the government re-categorised existing mining areas into 52 separate areas for mineral exploration. As a result, the Rwandan government now attracts investment to these areas because there is more understanding of which minerals exist there.
It's important to note that Rwanda imports many of its minerals from neighbouring Democratic Republic of Congo and then re-exports them. Importing and re-exporting DRC minerals earns Rwanda immediate foreign exchange earnings. This is particularly evident in rising Rwandan gold exports in recent years. Thus, even where governments may be keen to invest in geological investigations, when other short-term priorities exist it is less easy to sustain long-horizon goals in domestic mining sectors.
Breaking the knowledge barrierThe global demand for minerals is soaring.
This has made developing comprehensive knowledge of underground resources more urgent for African countries. However, our research suggests that simply throwing more money at geological surveys won't reorganise domestic minerals sectors if political incentives favour short-term interests.
Understanding the political dynamics is the first step towards unlocking Africa's mineral potential. Only by learning more about the power structures that shape these decisions can countries begin to map their way to more sustainable mineral wealth.
© Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).