AFRICA 2.0 Annual Leadership Symposium, Accra. Improving efficiency and equity in the management of Africa’s natural resources Presentation by: Max Bankole Jarrett Deputy Director, Africa Progress Panel 1

The Africa Progress Panel 2

Africa Progress Reports 3

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Mapping Africa’s natural resource wealth: selected countries and commodities 7

“With Africa’s economies riding the crest of the global commodities wave, there is an unprecedented opportunity to convert the region’s vast resource wealth into investments that could lift millions out of poverty, create jobs, and bring hope to future generations.” Kofi Annan, Chair of the APP 8

Wealth/wellbeing gap 9

Democratic Republic of the Congo losses in concession trading versus budgets for health and education 10

Africa’s illicit outflows 11

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Selected Recommendations EXTRACTIVE INDUSTRY Transparency and accountability Adopt a global common standard for extractive transparency Support implementation of the Africa Mining Vision and work of the Africa Minerals Development Centre. Use the African Peer Review Mechanism Distribution of benefits Build a multilateral regime for tax transparency. The G8 should establish the architecture for a multilateral regime that tackles unethical tax avoidance and closes down tax evasion. Economic transformation Boost linkages, value addition and diversification. Add value by processing natural resources before export. Forge links between extractive industries and domestic suppliers and markets to contribute towards value addition. Resource revenues and public spending Ensure equity in public spending. Ensure equity in public spending: Strengthen the national commitment to equity and put in place the foundation for inclusive growth. Finance generated by the development of minerals should be directed towards the investments in health, education and social protection needed to expand opportunity, and towards the infrastructure needed to sustain dynamic growth. Social and environmental sustainability Protect artisanal mining. The formal extractive sector and informal artisanal mining both stand to gain from constructive arrangements that recognize the rights of artisanal miners and protects the interests of all investors 14

Selected Recommendations – Cont’d AGRICULTURE AND FISHERIES African Governments Deliver on promises on spending targets for agriculture Stop the plunder of nature resources Set equity target for the post 2015 goals International community Development partners should work with governments to develop strategies aimed at expanding opportunity at the bottom of the social pyramid, with social protection a priority. Ratify the 2009 Port State Measures Agreement to end the theft of Africa’s fish. Eliminate subsidies that contribute to IUU fishing Involve China in a multilateral framework on sustainable forest management in Africa. The application of official Guidelines on Sustainable Overseas Forests Management and Utilization by Chinese Enterprises, jointly issued by the Chinese State Forestry Administration and the Chinese Ministry of Commerce, is a useful starting point Private sector Scale up investment in agro processing. Eliminate transport cartels. Foreign investors should partner with African companies to build linkages between export sectors and domestic markets. Place emphasis on creating jobs and adding value. Seize opportunities created by Africa’s tech revolution and develop innovations for Africa and for the world. 15