Executive Summary
This briefing examines three approaches to resource governance in African extractive sectors, with focus on mechanisms that empower local communities and support sustainable development.
1. Community Benefit Agreements (CBAs)
Definition: Negotiated agreements between mining/oil companies and affected communities specifying employment, procurement, and development contributions.
Strengths: Direct engagement, tailored to local context, measurable commitments.
Challenges: Power imbalances, limited technical capacity, weak enforcement mechanisms.
2. Revenue-Sharing Models
Countries including Ghana and Nigeria use variants that allocate mining revenues to local governments and communities. Results are mixed: some regions see improvements in infrastructure, others struggle with corruption and mismanagement.
3. Participatory Monitoring
Civil society-led monitoring of company compliance and environmental impact. This approach is cost-effective and increases transparency, but requires sustained funding and security for monitors.
Recommendations
Effective resource governance requires: (1) strengthening local institutional capacity; (2) transparent revenue flows; (3) meaningful community participation in decision-making; (4) robust dispute resolution mechanisms.