Making Extractive Investments Work For Africa’s Development: What Role For Qatar In Shaping The Debate On Natural Resource Governance?

Abstract

At present, emerging economies such as China, are the major importers as
well as investors in Africa’s extractive sector. Indeed, they maintain a
“stranglehold” on the continent regarding finance for development. Their
success in gaining access to the resources of Africa is linked to an effective
strategy that combines trade inducements, increased investment flows, aid
for infrastructure and construction and technology transfers. With the recent
dramatic decline in the price of commodities, and China’s re-balancing with
greater emphasis on consumption-driven growth model, growth prospects in
commodity-dependent Africa has dampened. Qatar, with its abundant
hydrocarbon reserves and US$10 billion foreign exchange reserves, deploys
its “soft power” to enable African countries develop their extractive sector
fully, industrialize and end China’s financial stranglehold on the continent.
Qatar can help develop Africa’s mineral processing industries through public
private partnerships and experience. This is because of Qatar’s track record
as a sound manager of natural resources. This type of partnership will assist
African countries to get more out of their natural resources through valueaddition, and further deepen domestic technological capacity and job creation.