Extractive sector under pressure to demonstrate developmental obligation

This research paper examines the shifting landscape of Africa's extractive sector, noting the rise of emerging market companies and increasing pressure on all firms to demonstrate developmental and environmental contributions. It argues that Western and OECD companies can gain a competitive edge by adapting their business models to support local processing, reskilling workers, and enhancing transparency.

• The African extractive sector is seeing a shift in dominance from Western companies to those from emerging countries, such as Brazil's Vale in Mozambique's coal sector.
• There is increasing hostility toward the traditional extractive model of exporting raw resources for value addition elsewhere, leading to demands for greater local processing and linkages to improve Africa's position in global value chains.
• The Botswana government successfully pressured De Beers in 2013 to move high-value diamond cutting and polishing operations from London to Gaborone as an example of empowering local partners.
• Technological shifts are driving three transitions: the need to reskill low-skilled workers due to mechanisation, the requirement for advanced inputs to improve efficiency in maturing jurisdictions like South Africa, Zambia, and the DRC, and the use of technology to enhance regulatory oversight of corporate practices.
• Some EU countries, such as Germany, are planning to reduce material inputs—potentially by 90 percent by 2030—which may decrease Western resource dependence and shift African exports toward Asia.

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} }