1. ADAJI UFEDO-OJO - 1ST PLACE WINNER
INTRODUCTION
The African Bush Elephant weighs 6000kg and is considered the largest existing land animal on the face of the earth because it possesses features of greater capacity than any other species. They are kept in zoos and as a means of restriction, zookeepers strap one end of a thin metal chain to the elephant’s leg and attach the other end to a wooden peg hammered to the ground. It is logically impossible that a mere chain would restrict the herculean animal capable of deracinating a big tree as easily as you could break a toothpick. In reality, the mighty mammal succumbs to its imprisonment without rebellion. This is because from its days as a calf the same restraining methods were used to domesticate it and now that it is fully grown it is unaware of the power it possesses and thus remains limited not by tangible constraints but by cognitive impairment of a fixed mindset.
In the same vein, despite being the second-largest mineral industry in the world with 19% of the world’s workable youthful population, Africa is unaware of the power and advantage it possesses in both mineral and human resources. Just like the elephant in the story above, we have been plagued by the nature of our mindset.
MAIN BODY
The mind, like a double-edged sword, is a powerful tool for excellence (growth mindset) and doubles as a tool for stagnancy (fixed mindset). A renewed mindset paves way for total transformation and freedom from self-imposed sentimental chains. Therefore, we cannot move forward without correcting the cognitive notion that Africa’s mineral resource sector is narrowed to mining and trading raw materials.
With Africa ranking first in the number of world reserves for some natural resources like cobalt, industrial diamond, and bauxite, conversion of this advantage into human and physical capital could result in the genesis of significant service sectors in natural resource extraction-related activities such as mining finance and environmental and social analysis. This sector provides a potential for limitless benefits like job creation, poverty alleviation, a source of investment, and sustainable progressive economic growth. These benefits can be harvested by value accrual to the extractive sector through further local refining of raw materials before export and strengthening the linkages between the mineral resource sector and other sectors in the economy.
Subsequently, power to control the management and operations of this sector is wielded by the policymakers in government thereby highlighting the quality of good governance in furthering the development of this sector. The roles they play in this sector range from governing the modus operandi to inventing innovative ideas to enhance value addition. Difficulty in combining the right policies to lead to positive impact stand in the way of harvesting optimum benefits from this sector.
WORKABLE SOLUTIONS
The key to the sustainable development of Africa’s mineral resource sector lies in value addition to the mineral resource sector through leveraging on human and physical resources available, investment in necessary infrastructure, adoption of suitable standards, proper policy alignment, and a generalized legal regulatory standard across the continent.
Furthermore, Africa’s mineral resource sector is bestowed with a plethora of potentials that go beyond increasing the economic profile but spans to improving the quality of life of the people through its linkages with other sectors. These linkages include the;
Upstream linkages; concerned with mining capital goods that link-local suppliers to extractive companies and result in the establishment of local industries with quantifiable social and economic benefits.
Downstream Linkages; Involves refining goods locally for exportation. It is essential in the reduction of the unemployment rate as well as promoting industrialisation and economic diversification.
Midstream Linkages; It encompasses strategic investment in building the required infrastructure to carry this process eg; roads/rails/ports, warehouses, uninterrupted electricity supply, etc.
Fiscal and Consumption Linkages; They allow for optimum use of revenue generated for the enhancement of industry development and better living conditions for the staff (increased wages and pension schemes)
Mutually Beneficial Relationships; This is between the state, private sector, local communities, civil society, the public, policymakers, and other stakeholders.
Therefore, a rising tide cannot raise people who don't have a boat. Likewise, policymakers cannot restructure a non-existent extractive sector. The extractive sector cannot make a quantifiable impact without alignment of its linkages with other sectors and provision of necessary infrastructure.
In addition, policymakers play a major role in overseeing Africa’s mineral resources sector. The government can take a critical look into the principles of the value chain for extractive industries to promote these linkages and assure sustainable development. There is a need for sound legal frameworks and innovative tax regimes that prioritize and monitor operations. Explicit requirements for the application of mineral licensing by companies should be supervised and punishments should be meted to perpetrators by respective regulatory bodies.
CONCLUSION
Albert Einstein once defined insanity as expecting different results after repeatedly performing the same action. The age-old policies regarding Africa’s minerals sector need a thorough review to accommodate the necessity of value addition for sustainable development. To achieve this goal we need to unite as Africans in setting a continental standard. There should be uniformity in policy formation with a superior committee guiding and regulating the operations of the extractives sector in the continent according to favorable policy measures for the greater good. There is a need to strengthen the linkages between the extractive sector and other sectors for sustainable growth and economic development encapsulating a complete psyche transformation, inclusive governance, and a quality legal system for Africa's mineral resource sector. If all these are considered, Africa’s mineral resource sector would be topping global GDP charts with a substantial reduction in the poverty index in no time.
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