UN Warns Africa’s Resource Value Gap Carries $2.1trn Cost

 

By Atlantic Reports

Africa faces an estimated US$2.1 trillion economic cost from its inability to fully control and retain the value of its strategic resources, according to remarks delivered at a United Nations debate on the continent’s development.

UN General Assembly President Khalilur Rahman cited the estimate on Monday, describing a “sovereignty deficit” between ownership of resources and the institutional capacity to manage their economic benefits.

He attributed the figure to a report by UN Secretary-General António Guterres. The supplied account did not specify the period covered by the estimate or explain how it was calculated.

Rahman said weaknesses in the institutions responsible for natural resources, financial assets and economic opportunities were limiting Africa’s ability to turn its wealth into development.

Retaining more resource revenue

According to Rahman, African countries capture, on average, only about 40 per cent of the potential revenue generated by their resource wealth.

He argued that the gap deprived governments of funding needed for education, healthcare, infrastructure and employment, while substantial financial outflows reduced the benefits reaching citizens.

Rahman contrasted the estimated US$2.1 trillion cost with approximately US$97 billion in foreign direct investment received by Africa. However, the account did not establish whether the figures covered comparable periods or explain the basis of the comparison.

Speaking during the General Assembly’s joint debate on the New Partnership for Africa’s Development and the African Union’s Agenda 2063, he urged governments to strengthen their capacity to negotiate resource agreements, administer taxation and prevent illicit financial flows.

Stronger institutions, he said, would support fairer contracts and help ensure that resource exploitation served the public interest.

Processing resources and investing in people

Rahman called for greater investment in local processing and manufacturing to reduce dependence on raw-material exports.

He urged a shift from short-term extraction towards long-term stewardship and industrial development, with more economic value retained within African economies.

He also described people, particularly the continent’s growing youthful population, as Africa’s greatest asset.

One in every three young people worldwide is projected to be African by 2050, he said. Turning that demographic potential into prosperity would require sustained investment in education, healthcare, technology, skills and decent employment.

Rahman highlighted the African Continental Free Trade Area as another opportunity for growth. He cited a projection that full implementation could increase Africa’s real income by about seven per cent, equivalent to US$450 billion, by 2035.

That figure is a projected outcome dependent on implementation, rather than income already generated.

Aid decline and debt pressures

Rahman warned that falling development assistance and rising debt obligations were constraining the continent’s financing options.

Citing preliminary Organisation for Economic Co-operation and Development figures, he said bilateral development assistance to Africa fell to US$29 billion in 2025, a 23.9 per cent decline from the previous year.

He also cited projected external debt-service obligations of US$88.7 billion, although the supplied account did not identify the period covered by that projection.

Rahman called for increased concessional financing and changes to international debt-resolution mechanisms to ease pressure on African governments.

He also urged the UN system to strengthen cooperation with African institutions and employ more qualified African professionals in development and humanitarian operations.

“Africa has resources. Africa has people. Africa has ambition,” he said.

The central challenge is whether governments and their partners can convert that wealth into revenue retained, productive industries and dependable public services. Clearer measurement of the losses, stronger institutions and accountable resource agreements will be important to assessing progress.

Atlantic Reports: Voices. People. Facts.