L. Fituni, I. Abramova Resource Potential of Africa and Russia's ...

The comparative analysis of the structures of mineral resource
bases in Africa and Russia shows that the two occupy approximately
the same niche in global reserves and production. Moreover, the
nomenclature of the mineral commodities extracted from their soils
is nearly the same. This fact puts the Russian Federation and the
countries of the Black continent into the situation, where they either
have to enter a fierce competition at the world commodities markets
and by doing so, inevitable bring down the prices for the commodities
thee export, or look for ways of cooperating with each other.
The latter option allows besides other benefits to seek jointly for
solutions, that would enhance the positions of both parties.
2.2. Developmental Efficiency of the Resource Base Use
The efficient use of the existing resource base is an issue of crucial
importance for both Africa and Russia. The multiplication effect
of mining for the development of the whole of the nation’s economy
is very significant. On the macroeconomic scale it varies between the
factors of 2 and 3 and in the employment aspect – between 4 and 8.
In Russia’s case the direct contribution of mining into the formation
of the nation’s GDP (without secondary impacts) is slightly less
than 20%. Its share in the revenues of Russia’s consolidated budget
is about 30%, and in the revenues of the federal budget of the Russian
Federation, it is nearly 50%.
Extractive industries and their relationship to natural resource
management are at the heart of some of the most significant challenges
facing Africa, too. There is evidence that natural resource
abundance has often proved to be a 'curse' rather than a benefit for
many developing economies. 29
There has been increasing concern about the social and economic
impacts of resource exploitation as the search for new sources
of oil, gas and minerals has intensified, particularly in fragile states
of Africa. The livelihoods of many poor people, especially in the
least developed states of the continent, are dependent on renewable
natural resource systems whose sustainability is under threat as a
result of population pressure and climate change.
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