PSC Open Debate on Natural Resources and Conflict in Africa

AFRICAN UNION

UNION AFRICAINE* UNIﾃグ AFRICANA

P. O. Box 3243, Addis Ababa, ETHIOPIA Tel.: (251-11) 5513822 Fax: (251-11) 5519321/5514227 Email: situationroom@africa-union.org

PEACE AND SECURITY COUNCIL 574TH MEETING 11 FEBRUARY 2016 ADDIS ABABA, ETHIOPIA

CONCEPT NOTE OPEN SESSION OF THE PEACE AND SECURITY COUNCIL ON NATURAL RESOURCES AND CONFLICTS IN AFRICA

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OPEN SESSION OF THE PEACE AND SECURITY COUNCIL ON NATURAL RESOURCES AND CONFLICTS IN AFRICA I.

INTRODUCTION

1.

According to the World Trade Organization, approximately one fifth of the world’s trade flow involves natural resources. In Africa, natural resource exports constitute approximately 74% of total merchandise exports. Africa has about 12% of the world’s oil reserves, 42% of its gold and 80% to 90% of chromium and platinum group metals. Africa also has deposits of ores that are of much higher grade than anywhere else in the world (e.g. copper in the Democratic Republic of Congo, and gold in Ghana). In addition, the continent is expected to become a prominent source of fossil fuel exports and is expected to overtake the Middle East as the largest net exporter of liquid natural gas in the next two decades.

Therefore, if well managed, natural resources can be important catalysts for the development of Africa.

2.

However, natural resources also present particular challenges for countries affected by and vulnerable to conflict. Weak management of these resources can be a key factor in triggering, financing and prolonging conflicts. Effective and transparent management of a country’s natural resources that ensures the interest and wellbeing of the local population and the country at large can therefore be critical to preventing conflict and promoting sustainable development.

II.

NATURAL RESOURCES AND CONFLICTS

3.

There are many examples of African countries that have experienced stability and impressive economic growth in recent years through the effective management of their extractive industries. Resource rich countries with strong, accountable and transparent state institutions that regulated extractive sector in a manner that ensures inclusive, equitable, fair and people centered development have the opportunity to benefit from increased revenues, investments and job creation. But there are also other examples of countries with large extractives sectors experiencing conflict. It should be underlined that extractive resources are never the sole source of a conflict. Conflict is often triggered by the interaction of a complex set of factors, such as poverty, inequality-related grievances, marginalization of local communities, misappropriation of resources and economic mismanagement, and the exacerbation of tension between different communities.

4.

There is perhaps no better-known symbol of the link between African natural resources and conflict than diamonds, better known as “blood diamonds.” The small size which makes diamond easy to transport and the high price it fetches on world markets makes it easy for armed movements to buy large quantity of arms, pay fighters and sustain military activities. In Sierra Leone’s decade-long civil war, the fiercest fighting was over control of that country’s diamond fields. Diamonds smuggled from Sierra Leone also helped finance one side in the war in neighboring Liberia, as did illegal exploitation of Liberian timber and iron ore. In Angola’s civil 2|Page

war, the rebel UNITA movement sustained itself for years through illegal diamond mining. In the Democratic Republic of the Congo, rebel groups have used the proceeds of mineral sales to fund their military operations. The “Lord’s Resistance Army” (LRA) also benefits from the proceeds of mineral and ivory sells to fund its terrorist activities. That is why, over the years, the Organization of African Unity (OAU) and its Central Organ for Conflict Prevention, Management and Resolution, as well as the African Union (AU) and its Peace and Security Council (PSC) took various decisions to address the adverse use of these natural resources. A specific case, involving the illegal exploitation of natural resources to perpetuate conflict and further impoverish the local population in the situation of Western Sahara. In this respect, in the decision Assembly/AU/Dec.583(XXV) adopted at its 25th Ordinary Session “urged the UN Security Council to fully assume its responsibilities, as well as effectively address the issues of the respect of human rights and the illegal exploitation of the Territory’s natural resources.” i.

The African Mining Vision

5.

The 12th Ordinary Session of the African Union Heads of State and Government held in February 2009, adopted the African Mining Vision (AMV). The AMV is a paradigm shift away from a model of extractive resource exploitation based on a high dependency on international export markets that has proven unable to bring socio-economic development to Africa. In doing so, it addresses the longstanding paradox of a continent endowed with abundant natural resources, but still faced with high levels of poverty and disparity among African populations.

The AMV, among others, requested the African Union Commission to integrate the peace and security dimension of natural resources into its existing conflict prevention and early warning, as well as conflict management and peacemaking and peace support policies and programmes.

6.

The African Mining Vision requested Member States to:

i.

Develop methodologies and tools for conflict risk analysis and mainstream them into planning frameworks; Include conflict dimensions and structural risk factors in their development plans; Consider initiatives to decentralize revenue distribution and allocation; Ensure broad-based, active and visible involvement of affected communities in the approval, planning, implementation, and monitoring of mining projects; and Build platforms for consensus building on priorities and options for the development and management of mineral resources.

ii. iii. iv. v.

7.

Therefore, this open session , participants can debate as a follow-up to this decision by the Assembly of the AU. It can also be a self-assessment on where are the Member States are in the implementation of the AMV. ii.

Strong Institutions, broad-based and inclusive growth and Natural Resources

8.

The main objective of the AMV has been to shift from the current and dominant “resource-for-development” model, to one that could bring about a structural transformation 3|Page

of African economies by using mineral resources to catalyze broad-based and inclusive growth and development of Africa’s resource markets, and foster economic diversification and industrialization throughout the continent. It is abundantly clear that national governments that are able to build strong, accountable, transparent institutions to regulate their extractive industries in a manner that benefits their people mitigate the risks of conflict, and transform the vast potential of these industries into a broad-based and inclusive economic growth. In this regard, the Executive Council of the African Union at its Fourteenth Ordinary Session, held in January 2009, (EX.CL/Dec.471(XIV)), requested the Commission, in collaboration with the United Nations Economic Commission for Africa (UNECA), the African Development Bank (AfDB) and stakeholders, to assist Member States in building their capacity for improved management of mineral resources for the attainment of broad based socio-economic development.

9.

Some multinational companies also acted with impunity by extracting Africa’s resources in a manner that devastates the environment and the livelihood of local communities while amassing the much valued resources. Hence, transparency and accountability on the part of private sector firms is also important, allowing them to make a positive contribution to promoting peace and stability, while exhibiting the important aspects of corporate social responsibility.

10.

A number of international processes and initiatives were launched to ensure responsible and transparent business practices. These include the Extractive Industries Transparency Initiative (EITI); the Kimberley Process Certification Scheme (KPCS) and Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High Risk Areas. In this regard, the African Mining Vision directed the AU Commission to develop codes of conduct for mineral resources development.

III.

THE ROLE OF THE PEACE AND SECURITY COUNCIL

11.

The Peace and Security Council engages on this issue, in its country-specific works. In her report submitted to the 508th meeting of the PSC, held on 18 May 2015, concerning the implementation of the mandate of the regional cooperation initiative for the elimination of the Lord’s Resistance Army, the Chairperson of the Commission explained that In the DRC, the LRA operations are concentrated in areas west of Garamba national Park, extending to the CAR border. The main pre-occupation of the various splinter groups is poaching elephants for ivory, and raiding villages to loot essential supplies for civilians. The LRA has strategically deployed some of its elements in the CAR provide a link with the groups poaching elephants in the DRC and those delivering the booties to Kony up north. They use money obtained from the sale of ivory and minerals to purchase essential items needed to sustain Kony.

12.

In the same vein, the report of the AU Commission of Inquiry on South Sudan explained that the struggle for political power and control of natural resources revenue, corruption and nepotism appear to be the key factors underlining the break out of the crisis that ravaged the entire country (South Sudan). Economic aspects of the conflict, such as control of natural resource (oil) has been a source of frustration among different tribes and the diaspora, who 4|Page

cannot benefit from the income of independence and especially from their country’s natural resources. The resources in the country are being used for the personal benefit of top politicians and their families and on one account the oil revenue is becoming a tool of harm.

13.

It is therefore essential that the Council considers the link between conflict and natural resources, and reflects, in line with the African Mining Vision, on how Member States can access the support they need to manage their extractive industries effectively, transparently and to mitigate any potential risks of conflict. Specifically, the Council should reflect on the instruments at its disposal to engage with these issues, and its comparative advantages. These include, as outlined in the AMV, integrating the peace and security dimension of natural resources into [the] existing conflict prevention and early warning, as well as conflict management and peacemaking and peace support policies and programmes.

14.

As observed in some successful post-conflict situations, well-coordinated post-conflict reconstruction initiatives and institution-building can ensure that extractive industries in conflict-affected countries contribute to stability and socio- economic development. In addition, through PSC-mandated missions, the AU can provide high level political advice and mobilize the necessary support to Member States on these issues and can help to build the capacity of state institutions to regulate the extractive industry.

IV. 15.

OBJECTIVES AND EXPECTED OUTCOME OF THE OPEN DEBATE This debate aims to tackle the following themes: • The link between the effective, people centered and transparent management of extractive industries and conflict prevention and how the AU can support its Member States to prevent and manage natural resource related conflicts.

• In line with its responsibilities given to the AU Commission on AMV, how the AU Commission can integrate the peace and security dimension of natural resources into its existing conflict prevention and early warning, as well as conflict management and peacemaking and peace support policies and programmes.

• In line with its responsibilities given to the AU Commission on AMV, how the AU Commission can develop codes of conduct for mineral resources development.

• The role of the AU in supporting countries-affected by conflict to develop effective, people centered and transparent state and other institutions to manage and regulate extractive industries, and how the AU works with RECs and international actors on these issues.

• The role of the Post-Conflict Reconstruction and Development in ensuring a coherent approach to support Member States strategies and priorities in this sector.

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• The role of domestic and multinational private sector firms in extractive industries, including financial institutions, in countries affected by conflict, and how to ensure conflict-sensitive, people centered and transparent business practices.

16.

The outcome of this open session is expected to influence and guide ongoing efforts by the AU Members States, RECs/RMs, AU Commission and African NGOs/CSOs, as well as partners in enhancing the AMV and other international existing efforts, as well as to brainstorm on how best natural resources can be exploited for the wellbeing of Africa and its partners.

V.

PARTICIPANTS

17.

The session will be open to all AU Member States, representatives of diplomatic missions in Ethiopia, partners, academicians, civil society, think-tanks, institutions/organizations and other relevant stakeholders active in the field of natural resources and conflicts in Africa.

The session will be interactive in nature and participants are encouraged to be frank, objective and innovative in their thinking.

VI.

DATE, VENUE AND LOGISTICS

18.

The open session will be held on 11 February 2016 at 10:00 a.m., at the AU Headquarters, in the Plenary Hall, Old Conference Centre. The open session proceedings will be in Arabic, English, French and Portuguese.

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