On paper, Guinea Conakry holds the world’s largest concession of bauxite with an estimated value of 7.4 tons but in reality, Guinea is one of the poorest countries in terms of development. A major contributory factor to this occurrence is the unfavorable contracts signed over the resources of the country.
Multinational companies feed on the greed of most African leaders, Guinea inclusive to sign contracts with direct benefits to some individuals who are mostly lured by lifetime percentages in contracts or a one-time kickback at the expense of the nation.
The mining sector has been one of the focus areas for Guinea’s strongman, Mamady Doumbouya after the overthrow of Alpha Conde’s regime. Among the preliminary reforms tabled by the Junta is the drive to nationalize the resources of the country.
Foreign miners have been instructed to process Bauxite especially in the country. The Junta has given these companies up to the end of May, 2022 to submit applications to be granted permission to construct their refineries in the country.
According to Doumbouya as cited by local media, the country does not benefit from its resources, hence a need to take the drastic measure.
“Despite the mining boom in the bauxite sector, we have to admit that the expected revenues are below expectations, and you and we cannot continue this game of fools that perpetuates great inequality in our relations” Doumbouya said.
The issue of countries earning less from their resources cuts across Africa. In some cases, the nation earns less than 40% of its own resources whilst the multinationals walk away with the big cuts. Do you think all other African countries should emulate this approach?