Leverage natural resources for infrastructural development- Opong-Fosu urges African countries

A former Minister of Local Government and Rural Development, Mr Akwasi Opong-Fosu, has urged African countries to leverage their natural resources for infrastructural and technological development.

He said the age-old concept of receipts from royalties and taxes on the exploitation of the natural resources had not helped the cause of the continent’s infrastructure development.

Mr Opong-Fosu, who made the call at the 2021 UK-Africa Trade and Investment Conference in London, said the continent’s annual infrastructure needs of about $108 billion could be addressed if the “natural resources for infrastructure” strategy was adopted alongside tackling illegal financial flows.

The theme for the conference was: “Enhancing UK-Africa Trade, Investment Relations and Boosting Business Value Chains.”

Mr Opong-Fosu, who is also a former Minister of Environment, Science and Technology, and a former Minister of State at the Presidency, was invited to speak at the conference in his capacity as the President of Africa Growth Solutions, an independent Pan-African policy, research and advocacy organisation committed to promoting Africa’s global competitiveness, especially in trade and investment.

Speaking on the topic, “Africa Economic Growth Potential: Challenges and Opportunities”, the former minister said for any renewed interest in Africa to be genuine and inure to the benefit of the people, infrastructure was key.
All, these, he said, demanded visionary leaders.

Mr Opong-Fosu said China’s new model of economic partnership with Africa — Natural Resources for Infrastructure — was a better option to the existing payment of royalties and taxes.

Chinese model

Explaining, Mr Opong-Fosu said it involved African countries giving out natural resource for infrastructure bilateral agreements without associated conditionalities.

“In comparison with existing agreements with the continent’s long-standing development partners which are based on payments of royalties and taxes, this model is now considered more favourable to Africa,” he stated.

Mr Opong-Fosu, however, noted the major concerns raised, mostly by Africa’s other development partners with respect to the Chinese model, which included attempts by China to recolonise Africa so as to have access to its natural resource, and pushing Africa back into the debt trap of the 1970s and 1980s.

“However, doubts have been cast on these assertions on the grounds that the development partners have had a long history of natural resource exploitation in Africa with little to show by way of any significant contributions to the continents’ infrastructure and overall development as is being witnessed now within the context of the Chinese model,” he stated.

Trade

Mr Opong-Fosu said the Africa Continental Free Trade Area promised a new hope for the continent’s development.

He urged African countries to critically examine the reasons behind the renewed and heightened interest in trade and investment in Africa by the developed countries, particularly the United Kingdom and what promise that renewed interest held for Africa’s economic growth and transformation agenda.

In addition, African leaders should examine what new and equitable partnerships and trade agreements will be introduced to integrate Africa into the global trade and investment value chain

Priorities

Posing the question : “What should be the priorities for UK-Africa economic relations/partnerships, the former minister said, “It is suggested that to show a serious commitment to the development of Africa, the development partners, together with Africa must of necessity and urgently develop a ‘Marshall Plan’ on the lines that was developed for the reconstruction of Europe after the Second World War.

“ Just as was done for Europe, any such plan should be devoid of pre-conditions,” he said.