With oil in Niger and Uganda, natural gas in Mozambique and Tanzania, iron ore in Guinea and Sierra Leone―African countries are increasingly finding rich new deposits of oil, gas, or minerals and just as quickly, attracting the courtship of international companies that are drawn to Africa’s new bonanza in extractives wealth.
When Mukisa joined the 62nd Makerere University graduating class in January 2012, he had already made up his mind to walk a very different path from those who graduated from the same Kampala university 30 years ago. Back then, jobs were waiting for graduates, who joined formal employment that afforded them a decent living. Today, only 20% of new entrants onto the Ugandan labor market find formal jobs, leaving the rest to self-employment and other informal activities. So Mukisa started a business in plant nurseries to tap into the demand for gardening materials for the booming construction industry in the city. He has gradually acquired the technical and entrepreneur skills for his business, but wishes for better access to capital and land, and less harassment by local authorities, to expand his business.
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In Sub-Saharan Africa, many local journalists suffer attacks, imprisonment or even death for reporting on corruption, public spending or the mismanagement of natural resources. In Africa, at least 41 journalists are spending this World Press Freedom Day behind bars.
While there is a clear recognition by international institutions that corruption and good governance are key to poverty alleviation, there seems to be much less understanding of the importance of an enabling environment, as a complement to training and capacity building, in order for the press to meaningfully contribute to greater accountability and transparency, such as natural resources exploitation.
For example, new oil discoveries in East Africa have the potential to lift millions out of poverty if the profits actually benefit the citizens in that region. The optimism is dashed by the proverbial “resource curse,” that’s plagued the likes of Nigeria, Angola and Equatorial Guinea, where poor governance, wealth disparity and poverty persist. The fog of secrecy and opacity surrounding oil exploitation deals has also caused concern.
Well before sunrise in the small village of Msangani, Tanzania, Tunu ali Matekenya begins work at five, baking fresh bread. Formerly an agricultural laborer, Tunu’s life has improved thanks to entrepreneurship training she received in using advanced cookstoves.
“The oven I am using is very efficient, it is easy to use and consumes less charcoal, which reduces the cost of baking...all this means more profit” Tunu exclaims proudly.
In many areas of the developing world, women and children spend hours foraging for wood and other fuel sources then prepare meals around open fires or primitive cookstoves in poorly ventilated homes. Not only does this present an obvious fire hazard, but it also means they are inhaling toxic fumes from incomplete combustion of toxins that are responsible for nearly 500,000 premature and preventable deaths annually in Sub-Saharan Africa. The problem is particularly acute because 82 percent of the population depends on charcoal, dung, fuel wood, and forms of biomass for cooking purposes.
In country after country in Sub-Saharan Africa, new discoveries of oil, natural gas and mineral deposits have been making headlines every other week it seems. When Ghana’s Jubilee oil field hits peak production in 2013, it will produce 120,000 barrels a day. Uganda’s Lake Albert Rift Basin fields could potentially produce even greater quantities. Billions of dollars a year could flow into Mozambique and Tanzania thanks to natural gas findings. And in Sierra Leone, mining iron ore in Tonkolili could boost GDP by a remarkable 25 percent in 2012.
My strong hope is that all the people living in these resource-rich African countries also get to share in this new oil and mineral wealth. So far, with one of few exceptions being Botswana, natural resources haven’t always improved the lives of people and their families. From what I see on my constant travels to the continent, economic growth in most resource-rich countries is not automatically translating into better health, education, and other key services for poor people.
Many resource-rich countries tend to gravitate towards the bottom of the global Human Development Index, which is a composite measure of life expectancy, education and income.
One strikingly effective way to make sure that all people, especially the poorest, share in the new minerals prosperity is through safety nets and social protection programs. These are designed to protect vulnerable families and promote job opportunities among poor people who are able to work. This in turn makes communities stronger and more secure, while reducing painful inequalities between people.
Social protection programs are already central to poverty-fighting, higher growth national strategies across Africa, and have played a significant role reducing chronic poverty and helping families become more resilient in the face of setbacks such as unemployment, sudden illness, or natural disasters such as droughts or floods. These programs have also allowed families to invest in more livestock or grow more food, and increase their earnings.
- Labor and Social Protection
- Social Development
- Agriculture and Rural Development
- Sub-Saharan Africa
- social safety nets
- social protection
- Human Development Index
- cash transfers
Young men from four formerly war-torn African countries put years of conflict and hardship behind them last weekend as they played each other in the finals of the Great Lakes Peace Cup.
I did not expect Burundi to win, but they did! And what a beautiful victory it was. The team came from Bubanza, a small town about an hour north of Burundi’s capital Bujumbura. The players had journeyed more than 18 hours by bus, including about three hours to cross the border into Uganda.
Football players from across East and Central Africa will gather in the Ugandan capital of Kampala on September 21 and 22 to take part in the finals of the Great Lakes Peace Cup, a tournament organized to help former combatants – many of them abducted child soldiers – become part of their communities through the healing power of sport.
The Great Lakes Peace Cup is being organised by the World Bank’s Transitional Development and Reintegration Program (TDRP), and the government amnesty and reintegration commissions of the four competing countries.
The World Bank is preparing a new project in partnership with the Government of Uganda to support infrastructure development in 14 of the country’s Municipal Councils. The Uganda Support for Municipal Infrastructure Development (USMID) project will be one of the first in the world to pilot a new way of distributing World Bank funds to governments. The new pay-out process will link the disbursement of funds directly to project results. For instance, unless the Municipal Council completes the infrastructure they plan to build, no more money will be given to the government. That’s just an example. This process, called Program for Results, is important because it places a more direct emphasis on development results.