Most countries in the Global South grapple with the legacy of colonialism — a sociopolitical and economic system designed for the extraction of raw materials in colonies and the oppression and abuse of their inhabitants.
Complete decolonisation — the political and economic process by which a nation gains political and economic independence from its coloniser — is imperative. The objective is to end both the formal and informal political and economic control exercised by colonial powers.
In most emerging and least-developed countries, decolonisation is not yet complete. It is “Not Yet Uhuru!”
The economies of most Global South countries remain colonial and untransformed. They are externally driven, controlled by a minority, and benefit a few, to the detriment of the majority. Even after attaining political independence or freedom, the economic structure of the former colony has not changed.
These states are still sources of cheap raw materials for the Global North. They are consumers of refined industrial products and users of obsolete technology and machinery from the Global North. Consequently, most Global South countries are perpetually locked at the bottom of global value chains.
The economic structures of most countries in the Global South, particularly those in Africa, need to be decolonised. That is the starting point. All grand global interventions — such as the just energy transition from fossil fuels to renewable energy; equitable economic transformation; achieving the UN Sustainable Development Goals; and the deployment of AI for development — are difficult to envisage without addressing this imperative.
How do you decarbonise a sociopolitical and economic system that has not been economically and structurally decolonised? How do you deploy AI for inclusive development and shared prosperity in a colonial and untransformed economy?
The Global South is endowed with vast natural resources. These include minerals and metals, energy resources (oil, natural gas, coal), agricultural land, forests and timber and tourism assets. These resources have the potential to play a critical role in economic development. However, they are not effectively used to drive economic transformation and industrialisation in the Global South. Africa illustrates the nature of one of the challenges — the lack of value addition.
Africa’s mineral resource base is vast and diverse, making the continent one of the most resource-rich regions in the world. Its mineral wealth includes precious metals, industrial minerals and fossil fuels.
It is also home to vast reserves of critical minerals and rare earth elements. Critical minerals are essential for modern technologies, economic security and national defence — with limited supply chains vulnerable to disruption. They are used in renewable energy systems, military equipment and AI hardware. Rare earth minerals — a subset of critical minerals — are a group of 17 elements crucial for high-tech applications.
Value addition to minerals is essential for Africa for several reasons, all of which aim to enhance the continent’s economic growth, industrialisation and long-term development
Africa’s rich mineral wealth and vast natural resources present immense potential opportunities for inclusive economic development and shared prosperity on the continent. However, it is just that — potential. Why are these rich resources not leveraged to benefit the continent’s broader population? How can these natural assets be used to improve the quality of life of ordinary Africans?
The lack of value addition is the primary constraint on the efficacy of the continent’s natural resource base. Raw, unprocessed minerals and energy resources are being exported from the continent.
There is a further resultant challenge — a net outflow of financial resources from the Global South to the Global North. The emerging and least-industrialised economies export raw and unrefined products at low prices (determined by the Global North) and import value-added products and finished goods from the Global North at high prices (determined by the Global North). Clearly, more money leaves the Global South than comes in.
The challenges are compounded by illicit financial flows — activities such as tax evasion, money laundering, transfer pricing and illegal trade. These shenanigans contribute to the outflow of financial resources from the Global South to the Global North.
Value addition to minerals is essential for Africa for several reasons, all of which aim to enhance the continent’s economic growth, industrialisation and long-term development. African economies must move up the global value chains.
With the adoption of AI, deployment of oher enabling technologies, crafting of enabling policies and raising the requisite finances, countries of the Global South can successfully achieve beneficiation and value addition. This will drive economic transformation and industrialisation.
• This is an excerpt from Prof Mutambara’s book, Artificial Intelligence: A Driver of Inclusive Development and Shared Prosperity for The Global South.
For opinion and analysis consideration, e-mail Opinions@timeslive.co.za
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