Africa remains a rich reservoir of natural wealth, encompassing rare earth minerals, metals, gold, and hydrocarbons. Despite this abundance, a significant portion of Africa’s populace resides in nations where oil, gas, and minerals hold pivotal economic roles. However, average incomes in these regions persistently lag behind the global average. Moreover, reliance on commodity exports often transforms these nations into entities dependent on rent.

The oil sector exemplifies Africa’s predicament. In Angola, for instance, oil constitutes 98% of exports and approximately three-quarters of government revenues. Nevertheless, these profits tend to be monopolized by a select elite, rarely benefitting the broader population or national budget. Even when oil and gas revenues ostensibly reach government coffers, they frequently vanish. A 2011 audit by the International Monetary Fund revealed that Angola lost $32 billion between 2007 and 2010, roughly a quarter of the country’s total revenues for that period.

In Nigeria, oil fields have exacerbated civil unrest. Two-thirds of the nation’s oil reserves lie within territories claimed by separatists who declared the Republic of Biafra in 1967. This territorial dispute heightened ethnic tensions, leading to a devastating civil war that claimed between 500,000 and 2 million lives. Control over the source of 80% of government revenue—crude oil exports—became a vital concern for elite factions within the state.

In our channel, we offer a concise analysis of the oil and gas sector. However, we also aim to provide fundamental insights that may prove beneficial for a clearer understanding.

For an in-depth exploration of how Africa’s commodities industry evolved into a systematic exploitation, Tom Burgis’ “The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers, and the Theft of Africa’s Wealth” offers invaluable insights.