Extractive sector under pressure to demonstrate developmental obligation

The paper examines the shifting landscape of Africa's extractive sector, noting the rise of emerging economies like China and Brazil and the increasing pressure on companies to demonstrate social and developmental obligations. It suggests that European firms can gain a competitive edge by embracing local processing, reskilling workers affected by mechanization, and improving transparency. Furthermore, it discusses how a projected decline in EU material demand by 2030 could shift global supply chains and allow for more technical, less geo-economic cooperation between the EU and Africa.

• Western extractive companies in Africa are losing dominance to firms from emerging countries, such as China and Brazil's Vale in Mozambique's coal sector, while facing increased pressure to prove their environmental, social, and developmental contributions.
• There is growing opposition to the traditional extractive model of exporting raw resources for value addition elsewhere; companies that adapt by empowering African partners and promoting local linkages may gain a competitive advantage, as seen with De Beers relocating diamond cutting and polishing from London to Gaborone, Botswana in 2013.
• Technological shifts are driving three transitions: the need to reskill low-skilled workers due to mechanization, the requirement for advanced inputs to improve resource recovery in maturing jurisdictions like South Africa (gold), Zambia, and the DRC (copper belt), and the use of technology to enhance regulatory oversight and corporate transparency.
• A projected reduction in material inputs in EU countries—with Germany reportedly aiming for a 90 percent reduction by 2030—may decrease Western resource dependence, shift supply chains toward Asia, and create opportunities for high-value local production to serve the growing African middle class.

APA

Bello (2014). Extractive sector under pressure to demonstrate developmental obligation. South African Institute of International Affairs. https://saiia.org.za/research/extractive-sector-under-pressure-to-demonstrate-developmental-obligation/

Chicago

Bello. Extractive sector under pressure to demonstrate developmental obligation. South African Institute of International Affairs, 2014. https://saiia.org.za/research/extractive-sector-under-pressure-to-demonstrate-developmental-obligation/.

Wikipedia

{{cite report |last1=Bello |title=Extractive sector under pressure to demonstrate developmental obligation |publisher=South African Institute of International Affairs |date=19 May 2014 |url=https://saiia.org.za/research/extractive-sector-under-pressure-to-demonstrate-developmental-obligation/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bello2014extractive, author = {Bello}, title = {{Extractive sector under pressure to demonstrate developmental obligation}}, institution = {South African Institute of International Affairs}, year = {2014}, month = may, url = {https://saiia.org.za/research/extractive-sector-under-pressure-to-demonstrate-developmental-obligation/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }