A CONTEXT
To develop their countries, African governments must become geopolitically agnostic between East and West, and refrain from being entangled in the historic or current ideological positions of either side. Instead, they must focus exclusively on achieving rapid economic development by taking advantage of the increased market and investment opportunities. More multinational firms with similar skillsets means everyone can be substituted. This gives African governments leverage during negotiations if they can use it.
I will give an example how this can be achieved in the awarding of government contracts to multinational companies!
THE ISSUE
When African governments sign contracts with multinational companies for resource/mineral extraction, a seldom discussed problem is the underreporting of minerals excavated, altered business figures and price points, lack of transparency, and even third-party smuggling. The result is enormous losses of needed revenue year-to-year. To be fair, officials are frequently complicit.
THE QUESTION
How can African governments start creatively addressing these issues of underreported extracted resources/minerals and altered figures by multinational companies? Here are only the broad outlines of an idea.
A SOLUTION
Contracts for mineral/resource extraction should have two companies, preferably from geopolitical rival countries. One does the mining (e.g. Chinese), and the other is paid to directly monitor and audit the mineral quantities and monies/books (e.g. US). Next, as both foreign companies would establish a domestic subsidiary, the contract would require two groups of skilled diasporan professionals from the private sector of the host African country to own a percentage of both companies, and directly work in their management in the performance of the contract.
The activities of both companies on the contract (owing to the geopolitical rivalry) would produce a checks and balances of information. Also, the placement of skilled diasporan professionals in the ownership and management of both companies ensures a transfer of knowledge, and access to insider information of both activities (mining and auditing).
REFLECTIONS
African governments must be strategic and use the geopolitical climate between West and East to facilitate their own national development agendas. Yet they should be fair, transparent, and trustworthy in the performance of all contracts to ensure there is collective benefit to all parties! Remember, both East and West need African resources and minerals, and initially during independence many African countries lacked and needed their technical expertise. But today many African countries have the technical expertise… only it is slumbering in their scattered diaspora and just requires vision, strategic organization and coordination to be tactically harnessed for investment initiatives to achieve rapid economic growth!
~Dr. Ikenna Ezealah
Nation Upbuilding 