Unscrambling the Race for Africa

October, 2010
By Sanaa Arora

Every few years it seems that there is a new scramble for Africa; it's only the interested actors and strategies that seem to vary. It started with the rapid European colonization of the continent. This was followed by the more covert power play by USA and the Soviet Union during the Cold War.  The 21st Century or the current scramble for oil and minerals dominated by China and USA has been widely discussed by analysts. There have also been a number of new scramblers on the block, involved to a comparatively lesser extent, in particular India, Brazil and a resurgent Russia, who have increased their foreign policy focus on Africa in recent years. 

The current contest has also witnessed a more recent trend in the form of land grabs, wherein foreign entities purchase large tracts of arable land in Africa. While earlier land grabs by foreign governments were largely thought to be aimed towards securing their domestic food security needs, recent research suggests that increasing demand for bio fuels is also a major driver. Last month, new research reports stated that an area of arable land, the size of Denmark, i.e. approximately 5 million acres have been acquired by foreign entities in Africa to produce bio fuels, largely for the EU market. 

In light of recent attempts by countries to increase their influence in Africa, which often places their self-serving interests above the concerns of local African communities and even provides covert support to interstate African conflicts, it is important to explore answers that could bring enhanced prosperity and peace to the African people in the next decade.  

Political exploitation of the continent has not only been executed by foreign parties but by domestic players as well. African leaders have often found to be cohorts of foreign entities and have been accused of poor governance, corruption, a dislike towards leaving office at the end of their terms and having a vested interest in fuelling local conflicts and exploitation of resources. This trend has been termed as the �€œAfrican scramble for Africa�€ and is highlighted by the upcoming referendum in Sudan in January 2011 and the recent bomb blasts in Nigeria allegedly by the Movement for Emancipation of the Niger Delta. 2010 has been the second consecutive year, in which the Mo Ibrahim Foundation has declined to award its prize for excellence in African leadership. African leaders need to overcome these past blunders and promote effective governance and democratic institutions going forward.

Inclusive growth and effective governance are as critical to Africa, as to any other part of the world and African leaders, with some support from international organizations and civil society, need to ensure that positive progress is made on these fronts in the next decade. These principles are particularly  important for the oil, gas and mineral producing countries who risk alienating segments of their population, if profits from national resources do not reach the local population in any way. These countries are also at risk of the �€œDutch Disease�€ �€“ overdependence of the economy on one or two elements. For e.g. the economy of Angola is increasingly dependent on oil and gas and erstwhile exports of coffee and maize have more or less diminished. Going forward, the leaders of these countries need to examine diversification of their economies to mitigate risk. 

The UN Security Council Reforms could be another tool to help counter the foreign jostling for Africa. The recently concluded UN Millennium Development Goals summit witnessed African leaders reiterating their appeal for African representation amongst the permanent members of the apex body. Having an African member on the Security Council could have lessened the devastating conflicts in Rwanda, Congo and Sudan, by ringing them to the forefront of attention among world leaders. It is critical that the African voice is heard and African representation increased in the key decision making bodies of the UN. This will help in not only bringing a more balanced viewpoint to the high table but also in promoting accountability in Africa. 

The UN Millennium Development Goals summit has also highlighted the need to curb illicit financial outflows from Africa. Archbishop Ndungane, President and Founder of the African Monitor, recently warned that although the official development assistance to Africa has increased over the years, the net effect of actual benefit to a country has become zero or even negative due to questionable financial practices such as tax evasion and  capital flight widely practised by foreign corporations in Africa. Effective execution of promised measures to promote better financial practises could fetch enhanced gains to Africa in the next few years. 

Lastly reform of trade policies, in particular for agriculture related subsidies is an area which needs renewed attention. Trade policy reform directly impacts the competition for access to consumer markets. It is reported that US subsidies paid to cotton farmers equal three times the entire US Agency for International Development (USAID) African budget. In Mali, while US aid totalled $37.7 million in 2001, the country lost $43 million, partially as a result of US cotton subsidies. In Benin, the fall in prices of cotton in 2001 was linked to an increase in poverty from 37 percent to 59 percent. Oxfam International has noted �€œthat a one per cent increase in Africa�€™s share of world exports would be worth five times as much as the continent�€™s share of aid and debt relief.�€ A favourable reform of trade policies in the next decade could provide Africa, along with other developing countries, a boost in the race for markets and commerce. 

It is imperative that African people benefit from their own continent�€™s resources and are not given the short end of the stick by foreign entities. A cohesive strategy by African leadership which brings increased economic growth and peace to the continent over the next decade is the need of the hour.

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