The paradox of plenty is a reality for many African countries. There’s an abundance of natural resources such as oil, gas and minerals, but there hasn’t been much economic growth and development for many countries.
The natural resources abundant in most African countries tend to benefit not the communities and countries within which the minerals are extracted. Tanzania’s President John Magufuli has started the process of renegotiating the mining contracts his country has with various mining companies. Other African countries need to borrow a leaf out of Tanzania’s book.
The resource curse, also known as the paradox of plenty, is a reality for many African countries. The term refers to the paradox that countries with an abundance of natural resources such as oil and certain minerals, tend to have less economic growth, and worse development outcomes than countries with fewer natural resources, for various reasons. The natural resources abundant in most African countries tend to benefit not the communities and countries within which the minerals are found and extracted.
It is concerning to note that many of the mining deals on the continent benefit the American, European and Asian companies operating in the various communities more than they benefit African people. The resources should be a blessing for the African countries and communities.
Recently, Tanzania’s President John Magufuli ordered a review of a Petra Diamonds Ltd contract. Petra Diamonds owns 75% of the mines while the Tanzanian government owns 25%. Magufuli asked public officials to resign over the outcome of an investigation conducted into the mining sector.
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