Petropolitics: Africa oil economies vulnerable to paradox of poverty amidst plenty

Emerging oil and gas producing countries in Africa, including Ghana, are vulnerable to the paradox of poverty amidst the abundance of natural resources.

According to Ugandan-based independent policy analyst, Godber Tumushabe, “oil can be the price for freedom” but the politics of oil governance tends to push local people, especially those living close to resources, to the fringes of poverty.

“The problem of the extractive sector in many African countries is not caused by policy or any forms of the law, but by the greedy politicians who want to monopoly the wealth that comes from the mineral sector,” he observed.

The commercial production of oil in Ghana has yet to satisfy high public expectations in delivery of social goods, including quality education, roads, healthcare and job creation.

Such hopes are heightened with global giants in the oil sector – Chevron, Shell and Exxon Mobil – expressing interest to prospect oil in the country.

Ugandans also anticipate an emerging oil and gas economy that would transform their livelihoods.

But Mr. Tumushabe says it is only in democratizing decision-making over natural resources that African countries can avoid the trap of impoverishing its people.

“If you are to deal with the paradox of plenty and poverty, you need to have systems where the leaders are accountable to the citizens for every decision they make,” he said.

In natural resource dependent communities, political power determines access to natural resources and vice versa, observed Mr. Tumushabe.

He therefore believes civic consciousness and competence are critical in empowering citizens to ask and demand answers to the management of petroleum resources.

Parliaments and the judiciary should also be able to exert oversight over the executive arm of government.

The 2013 Africa Progress Report says millions of Africans have lost trust in the capacity and concern of their governments to manage natural resource assets in the public interest.

Mr Dozith Abeinomugisha, Geologist with Uganda’s Energy Ministry, is confident the oil and gas industry can help deliver the benefits when technical persons are given the room to steer affairs with less political interference.

Story by Kofi Adu Domfeh, in Kampala-Uganda