Skip to main content
SpringerLink
Log in

Assessing Extractive Natural Resources and Digitalization of Governance Initiatives in Africa: Rethinking Questions of Decline and Resilience

  • Chapter
  • First Online:
Sustainable Development, Digitalization, and the Green Economy in Africa Post-COVID-19

Part of the book series: International Political Economy Series ((IPES))

  • 63 Accesses

Abstract

The extractive resource sector in Africa is a key factor in and net contributor to growth and development. The global transition toward clean energy is accentuating the need for and production of vast amounts of metals, both common and rare types, compared to fossil fuels. The future demand outlook for extractives presents invaluable opportunities for countries endowed with such resources to harness their extractive wealth to advance economic development and human well-being. Unfortunately, for many resource-rich African nations, mining, oil, or gas exploitation has not resulted in broad-based economic, human, and social development. Also, of great importance is the rise of disruptive technologies and associated digitalization, which are reshaping the governance of Africa’s extractives. Accordingly, this chapter interrogates the role digitalization of governance initiatives in Africa’s extractives sector. The chapter explores the threats, opportunities, and possibilities of the extractive sector by examining how digitalization and governance initiatives could underscore a decline or resilience of the extractive sector in Africa. The chapter acknowledges that digitalization has become an invaluable go-to weapon to diagnose, manage and address governance challenges facing the sector. However, meaningful transformation of Africa’s extractives industry will require political will, enhanced capacity development at both the individual and institutional level, and a strong link between policymakers, regulators, and industry.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 129.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  • Abimbola, O., Aggad, F., & Ndzendze, B. (2021). What is Africa’s digital agenda? Policy Brief No.3. APRI (Africa Policy Research Institute).

    Google Scholar 

  • ACBF. (2013). Africa capacity indicators 2013: Capacity development for natural resource management. ACBF (African Capacity Building Foundation).

    Google Scholar 

  • Acemoglu, D. (1995). Reward structures and the allocation of talent. European Economic Review, 39(1), 17–33.

    Article  Google Scholar 

  • Acemoglu, D., & Restrepo, P. (2019). Automation and new tasks: How technology displaces and reinstates labor. Journal of Economic Perspectives, 33(2), 3–30.

    Article  Google Scholar 

  • Addison, T., & Roe, A. (Eds.). (2018). Extractive industries: The management of resources as a driver of sustainable development (Online ed.). Oxford Academic. https://doi.org/10.1093/oso/9780198817369.001.0001. Accessed 14 March 2023.

  • Ahmad, M., Khattak, S. I., Khan, S., & Rahman, Z. U. (2020). Do aggregate domestic consumption spending & technological innovation affect industrialization in South Africa? An application of linear & non-linear ARDL models. Journal of Applied Economics, 23(1), 44–65.

    Article  Google Scholar 

  • Arthur, P. (2012). Averting the resource curse in Ghana: Assessing the options. In L. Swatuk & M. Schnurr (Eds.), Natural resources and social conflict: Towards critical environmental security (pp. 108–127). Palgrave Macmillan.

    Chapter  Google Scholar 

  • Ayakwah, A., Damoah, I. S., & Osabutey E. L. C. (2021). Digitalization in Africa: The case of public programs in Ghana. In J. B. Abugre, E. L. C. Osabutey, & S. P. Sigué (Eds.), Business in Africa in the Era of Digital Technology (pp. 7–26). Springer.

    Google Scholar 

  • Bahn, R. A., Yehya, A. A. K., & Zurayk, R. (2021). Digitalization for Sustainable agri-food systems: Potential, Status, and risks for the MENA region. Sustainability, 13, 3223.  https://doi.org/10.3390/su13063223 

  • Bankole, F. & Mimbi, L. (2017). ICT infrastructure and its impact on national development: A research direction for Africa. The African Journal of Information Systems, 9(2). https://digitalcommons.kennesaw.edu/ajis/vol9/iss2/1

  • Barma, N. H., Kaiser, K., Le, T. M., & Viñuela, L. (2012). Rents to riches: The political economy of natural resource-led development. World Bank.

    Google Scholar 

  • Basedau, M. (2005). Context matters—Rethinking the resource curse in sub-Saharan Africa (DUI Working Papers # 1). German Overseas Institute.

    Google Scholar 

  • Bavinck, M., Pellegrini, L., & Mostert, E. (Eds.). (2014). Conflicts over natural resources in the Global South: Conceptual approaches (A Balkema Book). CRC Press. https://doi.org/10.1201/b16498

  • Burns, C. (2022). Using technology and data to strengthen your social license to operate. https://www.canadianminingjournal.com/featured-article/using-technology-and-data-to-strengthen-your-social-license-to-operate/. Accessed 24 March 2023.

  • Campbell, R., Omietanski, A., Burnell, M., & Felthun, G. (2021, April 5). African Mining 4.0: Innovative sunrise for African miners—Transformative technologies are ushering in a new era of efficiency, safety and growth. Insight. https://www.whitecase.com/insight-our-thinking/african-mining-40-innovative-sunrise-african-miners-0. Accessed 20 March 2023.

  • Christensen, C. M., Ojomo, E., & Dillon, K. (2019). The prosperity paradox: How innovation can lift nations out of poverty. HarperCollins.

    Google Scholar 

  • Cigna, L. (2018). Digital inequality in theory and practice: Old and new divides in the broadband era. Interações: Sociedade e as novas modernidades, 34, 47–63.

    Google Scholar 

  • Collier, P. (2010). The plundered planet—Why we must—And how we can—Manage nature for global prosperity. Oxford University Press.

    Book  Google Scholar 

  • David, R. M. (2018). Advancement in digital oil field technology: Maximizing production and improving operational efficiency through data-driven technologies. In M. Clifford, R. K. Perrons, S. H. Ali, & T. A. Grice (Eds.), Extracting innovations: Mining, energy and technological change in the digital age (pp. 137–143). Taylor and Francis and CRC Press.

    Chapter  Google Scholar 

  • Deloitte. (2017). Tracking the trends 2017: The top 10 trends mining companies will face in the coming year. https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Energy-and-Resources/gx-er-tracking-the-trends-2017.pdf. Accessed 17 March 2023.

  • Dianoux, A. (2021). Maximizing digitalization’s benefits: How the offshore sector can use data, expertise to thrive. Sea Technology, 62(5), 17–20.

    Google Scholar 

  • ECA (Economic Commission on Africa). (2009). African governance report II. Oxford University Press.

    Google Scholar 

  • Evangelista, R., Guerrieri, P., & Meliciani, V. (2014). The economic impact of digital technologies in Europe. Economics of Innovation and New Technology, 23(8), 802–824.

    Google Scholar 

  • Fearon, J. D. (2005). Paradigm in distress? Primary commodities and civil war. The Journal of Conflict Resolution, 49(4), 483–507.

    Article  Google Scholar 

  • Geipel, J., & Nickerson, E. (2021). Promoting mining local procurement through systems change: A Canadian NGO’s efforts to improve the development impacts of the global mining industry. In N. Andrews, J. A. Grant, & J. S. Ovadia (Eds.), Natural resource-based development in Africa: Panacea or Pandora’s box? (pp. 201–219). University of Toronto Press.

    Google Scholar 

  • Hanson, K. T., D’Alessandro, C., & Owusu, F. (Eds.). (2014a). Managing Africa’s natural resources: Capacities for development. Palgrave Macmillan.

    Google Scholar 

  • Hanson, K. T., Owusu, F., & D’Alessandro, C. (2014b). Toward a coordinated approach to natural resource management in Africa. In K. T. Hanson (Ed.), Managing Africa’s natural resources: Capacities for development (pp. 1–14). Palgrave.

    Chapter  Google Scholar 

  • Hanson, K. T., & Puplampu, K. P. (2018). The internet of things and the sharing economy: Harnessing the possibilities for Africa’s sustainable development goals. In K. T. Hanson, K. P. Puplampu, & T. M. Shaw (Eds.), From MDGs to SDGs: Rethinking African development (pp. 133–151). Routledge.

    Google Scholar 

  • Hanson, K. T., & Tang, V. T. (2020). Perspectives on disruptive innovations and Africa’s services sector. In P. Arthur et al. (Eds.), Disruptive technologies, innovation & development in Africa. Palgrave.

    Google Scholar 

  • Hilson, A. E. (2021). ‘Stakeholder salience and resource enclavity in Sub-Saharan Africa: The case of ghana’s oil.’ In N. Andrews, J. A. Grant, & J. S. Ovadia (Eds.), Natural resource-based development in Africa: Panacea or Pandora’s box? (pp. 79–100). University of Toronto Press.

    Google Scholar 

  • Humphreys, M., Sachs, J. D., & Stiglitz, J. E. (2007). Escaping the resource curse. Columbia University Press.

    Google Scholar 

  • Hyperledger.org. (2019). Case study: Circulor achieves first-ever-mine-to-manufacturer traceability of a conflict mineral with hyperledger fabric. https://www.hyperledger.org/wp-content/uploads/2019/01/Hyperledger_CaseStudy_Tantalum_Print.pdf. Accessed 20 March 2023.

  • Iyer, N., Achieng. G., Borokini, F., & Ludger, U. (2021, June). Automated imperialism, expansionist dreams: Exploring digital extractivism in Africa. Pollicy.

    Google Scholar 

  • Jones, S. (2008). Sub-Saharan Africa and the resource curse: Limitations of the cenventional wisdom, DIIS Working Paper #2008/14, Danish Institute for African Studies. Available at: https://files.ethz.ch/isn/92331/2008_14.pdf

  • Kasekende, E., Abuka, C., & Sarr, M. (2016). Extractive industries and corruption: Investigating the effectiveness of EITI as a scrutiny mechanism. Resources Policy, 34(4), 117–128.

    Article  Google Scholar 

  • Korovkin, V. V. (2019). National digital economy strategies: A survey of Africa. ORF Issue Brief No. 303, July 2019, Observer Research Foundation. https://www.orfonline.org/wpcontent/uploads/2019/07/ORF_IssueBrief_303_DigitalEcon-Africa.pdf. Accessed January 27, 2023.

  • Labhard, V., & Lehtimäki, J. (2022). Digitalization, institutions and governance, and growth: Mechanisms and evidence (ECB [European Central Bank] Working Paper Series, No. 2735).

    Google Scholar 

  • Lazarenko, Y., Garafonova, O., Marhasova, V., & Tkalenko, N. (2021). Digital transformation in the mining sector: Exploring global technology trends & managerial issues. E3S Web of Conferences 315, 04006. VIth International Innovative Mining Symposium. https://doi.org/10.1051/e3sconf /202131504006.

  • Lee, M. H., Yun, J. J. H., Pyka, A., Won, D. K., Kodama, F., Schiuma, G., Park, H. S., Jeon, J., et al. (2018). How to respond to the 4IR, or the 2nd information technology revolution? Journal of Open Innovation: Technology, Market and Complexity, 4(21), 1–24. https://doi.org/10.3390/joitmc4030021

    Article  Google Scholar 

  • Lesser, P., Poelzer, G., Gugerell, K., Tost, M., & Franks, D. (2023). Exploring scale in social license to operate: European perspectives. Journal of Cleaner Production, 384, 135552.

    Article  Google Scholar 

  • Manas, P., Upadhyay, P., & Dwivedi, Y. K. (2020). Roadmap to digitalization of an emerging economy: A viewpoint. Transforming Government: People, Process and Policy, 14(3), 401–415.

    Article  Google Scholar 

  • Maroufkhani, P., Desouza, K. C., Perrons, R. K., & Iranmanesh, M. (2022). Digital transformation in the resource and energy sectors: A systematic review. Resources Policy, 76, 102622. https://doi.org/10.1016/j.resourpol.2022.102622

    Article  Google Scholar 

  • Mayer, J. (2018). Digitalization and industrialization: Friends or foes (UNCTAD Research Paper No. 25). https://unctad.org/system/files/official-document/ser-rp-2018d7_en.pdf. Accessed 10 March 2023.

  • Mtotywa, M. M., Manqele, S. P., Seabi, M. A., Mthethwa, N., & Moitse, M. (2022). Barriers to effectively leveraging opportunities within the fourth industrial revolution in South Africa. African Journal of Development Studies (formerly AFFRIKA Journal of Politics, Economics and Society), No. si2.

    Google Scholar 

  • Mwakumanya, M. A., & Mwachupa, J. (2018). Digital mapping as a tool for environmental and social corporate accountability in the extractive sector in Kwale County, Kenya. Journal of Sustainable Mining, 17(3), 97–104.

    Google Scholar 

  • Obi, C. (2010). Oil extraction, dispossession, resistance, and conflict in Nigeria’s oil-rich Niger Delta. Canadian Journal of Development Studies, 30(1–2), 219–236.

    Article  Google Scholar 

  • OECD. (2020). Digital transformation in the age of COVID-19: Building resilience and bridging divides, digital economy outlook 2020 supplement. OECD.

    Google Scholar 

  • Ovadia, J. S., & Graham, E. (2022). The resource curse and limits of petro-development in Ghana’s “oil city”: How oil production has impacted Sekondi-Takoradi. In N. Andrews, J. Andrew Grant, & J. S. Ovadia (Eds.), Natural resource-based development in Africa: Panacea or Pandora’s box? (pp. 59–78). University of Toronto Press.

    Google Scholar 

  • Palomares, Z. R., García, J. G., & Rodríguez, D. P. (2022). Digitalization in the extractive sector: A comparative analysis of the Andean region. Carbon Trust & Inter-American Development Bank.

    Google Scholar 

  • Pedro, A., Ayuk, E. T., Bodouroglou, C., et al. (2017). Towards a sustainable development licence to operate for the extractive sector. Mineral Economics, 30, 153–165. https://doi.org/10.1007/s13563-017-0108-9

    Article  Google Scholar 

  • Pike, R. (2012). The relevance of social license to operate for mining companies. Schroders Fund Advisors LLC, Member FNRA, SIPC 875 Third Avenue, New York, 10022-6225.

    Google Scholar 

  • Pósleman, C. S., & Sallan, J. M. (2019). Social license to operate in the mining industry: The case of Peru. Impact Assessment and Project Appraisal, 37(6), 480–490. https://doi.org/10.1080/14615517.2019.1585142

    Article  Google Scholar 

  • Quartey, P., & Abbey, E. (2020). Ghana’s oil governance regime: Challenges and policies. In A. Langer, U. Ukiwo, & P. Mbabazi (Eds.), Oil wealth and development in Uganda and beyond (pp. 331–350). Leuven University Press.

    Google Scholar 

  • Ralston, J., James, C., & Hainsworth, D. (2018). Digital mining: Past, present, and future. In M. Clifford, R. K. Perrons, S. H. Ali, & T. A. Grice (Eds.), Extracting innovations: Mining, energy and technological change in the digital age (pp. 91–113). Taylor & Francis and CRC Press.

    Chapter  Google Scholar 

  • Ranchordás, S. (2015). Does sharing mean caring? Regulating innovation in the sharing economy. Minnesota Journal of Law, Science & Technology, 16(1), 414–475.

    Google Scholar 

  • Ranjith, P., et al. (2017). Opportunities and challenges in deep mining: A brief review. Engineering, 3(4), 546–551. https://doi.org/10.1016/j.eng.2017.04.024

    Article  Google Scholar 

  • Rustad, S. A., Le Billon, P., & Lujala, P. (2017). Has the extractive industries transparency initiative been a success? Identifying and evaluating EITI goals. Resources Policy, 51, 151–162.

    Article  Google Scholar 

  • Rutashobya, L. E., Chiwona-Karltun, L., Wilson, M., Ilomo, M., & Semkunde, M. (2021). Gender and Rural Entrepreneurship in Digitizing Sub-Saharan Africa. In J. B. Abugre, E. L. C. Osabutey, & S. P. Sigué (Eds.), Business in Africa in the Era of Digital Technology (pp. 63–84). Springer.

    Google Scholar 

  • Salai-I-Martin, X., & Subramanian, A. (2003). Addressing the natural resource curse: An illustration from Nigeria (Working paper 9804). NBER, Cambridge.

    Google Scholar 

  • Schwab, K. (2016). The fourth industrial revolution. Crown.

    Google Scholar 

  • Stoyanova, M. (2020). Good practices and recommendations for success in construction digitalization. TEM Journal, 9(1), 42–47.

    Google Scholar 

  • Teevan, C., & Shiferaw, L. T. (2022, October). Digital geopolitics in Africa: Moving from strategy to action (ECDPM Briefing Note, No. 150).

    Google Scholar 

  • Traoré, B., Yawson, F., Floyd, R., & Mittal, V. (2022, September). Promoting innovation and digital transformation in the infrastructure technology in Africa (Policy Brief No. 12). Accra, ACET.

    Google Scholar 

  • UN-IRP. (2020). Mineral resource governance in the 21st century: Gearing extractive industries towards sustainable development. A Report by the International Resource Panel. UNEP.

    Google Scholar 

  • Van der Ploeg, F. (2011). Natural resources: Curse or blessing? Journal of Economic Literature, 49(2), 366–420.

    Article  Google Scholar 

  • Wandaogo, A.-A. (2022). Does digitalization improve government effectiveness? Evidence from developing and developed countries. Applied Economics, 54(33), 3840–3860. https://doi.org/10.1080/00036846.2021.2016590

    Article  Google Scholar 

  • WEF. (2017, October). Impact of the fourth industrial revolution on supply chains. WEF. http://www3.weforum.org/docs/WEF_Impact_of_the_Fourth_Industrial_Revolution_on_Supply_Chains_.pdf. Accessed on August 18, 2022.

  • World Bank. (2003). Striking a better balance: The World Bank and extractive industries. Washington DC.

    Google Scholar 

  • Yanuardi, Y., Vijge, M. J., & Biermann, F. (2021). Improving governance quality through global standard setting? Experiences from the extractive industries transparency initiative in Indonesia. The Extractive Industries and Society, 8(3), 1–9.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Independent Development Evaluation, African Development Bank, Abidjan, Côte d’Ivoire

    Kobena T. Hanson

  2. Department of Political Science, Dalhousie University, Halifax, NS, Canada

    Peter Arthur

Authors
  1. Kobena T. Hanson
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Peter Arthur
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Kobena T. Hanson .

Editor information

Editors and Affiliations

  1. Department of Sociology, Grant MacEwan University, Edmonton, AB, Canada

    Korbla P. Puplampu

  2. Independent Development Evaluation, African Development Bank, Abidjan, Côte d'Ivoire

    Kobena T. Hanson

  3. Department of Political Science, Dalhousie University, Halifax, NS, Canada

    Peter Arthur

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Hanson, K.T., Arthur, P. (2023). Assessing Extractive Natural Resources and Digitalization of Governance Initiatives in Africa: Rethinking Questions of Decline and Resilience. In: Puplampu, K.P., Hanson, K.T., Arthur, P. (eds) Sustainable Development, Digitalization, and the Green Economy in Africa Post-COVID-19. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-32164-1_5

Download citation

Publish with us

Policies and ethics

Search

Navigation