Africa's Minerals Trap

Africa's minerals trap

28th January 2007

African peoples don't need to be taught lessons about being ripped off by mining companies. They have well over a century's experience of such exploitation. When an economy starts crumbling - as in mineral-rich Guinea - it's little wonder that outraged citizens target the world's biggest bauxite exporter, partly owned by Alcoa.

In contrast African governments have long pursued the contrary course of welcoming foreign minerals-related investment, even where it was palpably obvious that they were only compounding the so-called "minerals curse".

Now the African Union has analysed the degree to which foreign bankers and lawyers have exploited such complacency, claiming that around US$150 billion of mineral wealth is stolen from the continent each year through tax avoidance and capital flight.

No doubt it's a welcome sign when Tanzania, previously one of the most complaisant African governments when giving away minerals concessions, says it now plans to renegotiate the contracts.

Just how this will be done is another matter.As for the notion - peddled by the mining industry at large - that DR Congo has entered a new era of sustainability since the end of the recent bloody civil conflicts, international thriller writer, John Le Carre and the International Crisis Group urge us all to "Think again!".