Addis Ababa, Ethiopia, 3 July 2025 - The extractive industry in Africa is at a critical juncture, requiring a comprehensive strategy to transform the sector and ensure its contribution to the continent's sustainable development.
This was the central theme of Antonio Pedro, outgoing Deputy Executive Secretary of the United Nations Economic Commission for Africa (ECA), in his farewell lecture titled: "Extractive Industries and Economic Diversification in Africa: Can Africa Break New Ground?"
Mr. Pedro, a key figure in Africa's sustainable mining sector, played a pivotal role in developing the African Mining Vision (AMV), which was adopted by African Union (AU) leaders in 2009. The vision promotes transparent, equitable use of mineral resources for sustainable growth. He also led the International Study Group on mining, which examined Africa's mining regimes and identified challenges and opportunities during a period concerning the rising mineral demand and the 2008 global financial crisis. Additionally, he advocated for an intersectional approach at ECA, involving natural resources accounting and creating jobs through Battery Electric Vehicles (BEVs), which was aimed at ensuring Africa's extractives industry supports sustainable development and benefits its people.
In his lecture, he examined the complexities of the extractive sector over the last two decades, including challenges, strategies, and innovations aimed at promoting and enhancing the extractives sector to foster economic growth and sustainability across the continent.
He listed several research works, publications, and frameworks from the Africa Mining Vision and ISG, including the establishment of the African Minerals Development Centre and advocating for the AMV in the minerals sector, with a particular focus on critical minerals and the energy transition.
Yet, according to Mr. Pedro, the sector still faces significant challenges exacerbated by a lack of economic diversification, over-reliance on primary commodity exports, and limited job creation opportunities.
He considered whether a new approach that unites diverse stakeholders— from community members to policymakers—could effectively bridge differing perspectives, and whether fostering collaboration and dialogue among these groups could lead to a more inclusive decision-making process for the equitable distribution of benefits from extractive resources.
Mr. Pedro’s presentation sparked a lively discussion among participants and prominent academics, former members of the International Study Group on Mining and professionals in the extractive industry, including Arkebe Oqubay, a development economist at SOAS, London; Yao Graham, Coordinator, Third World Network-Africa; Lisa Sachs, Director of the Columbia Centre on Sustainable Investments & Columbia Climate School; and Elizabeth Bastida, International Mining Programme at the Centre for Energy, Petroleum and Mineral Law & Policy, University of Dundee..
Key takeaways from the discussions included:
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The need to promote local content by encouraging local participation and establishing economic links to create jobs and stimulate economic growth.
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Investing in Science and Technology can help Africa diversify its economy and reduce reliance on raw materials.
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Addressing structural issues by fixing long-standing problems is crucial for achieving sustainable development and overcoming historical challenges.
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Effective management is essential for unlocking the potential of Africa's extractive industry, which holds great promise.
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Good governance through strong and capable institutions is essential for ensuring the extractive industry benefits the economy and local communities.
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Africa should prioritise adding value to its natural resources to create jobs and stimulate economic growth.
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Traditional metrics, such as GDP, don't fully capture the economic benefits of extractive activities. Alternative measures can provide a more accurate picture.
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The extractive industry faces challenges such as infrastructure gaps and skills shortages, yet it also presents growth prospects, particularly through the African Continental Free Trade Area (AfCFTA).
Said Adejumobi, Director of the Strategic Planning, Oversight and Results Division (SPORD) of ECA, who chaired the session, noted that addressing the complexities and challenges of Africa's extractive industry can unlock its potential, maximise benefits from natural resources, and build more sustainable and resilient economies. He noted that a political economy approach should be adopted to unravel the challenges of the extractives sector.
Issued by:
Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: eca-info@un.org