The thematic goal of our Domestic Resource Mobilisation (DRM) portfolio is “to contribute to the development and implementation of transparent, accountable and efficient mechanisms for mobilisation and utilisation of domestic resources in Africa”.
This is a key focus area of AFRODAD work designed to contribute to the development and implementation of transparent, accountable and efficient mechanisms for the mobilisation and utilization of domestic resources in Africa. The extractive sector, particularly minerals; oil and gas has huge potential to mobilize resources for development in Africa. However, this potential is stifled by the lack of transparency and accountability mechanisms.
Mobilising domestic resources as a means to financing development has become an important development issue.
In the past, the emphasis on financing development focused on scaling aid and external borrowing. Dwindling Official Development Assistance (ODA); unsustainable debt levels and declining foreign direct investment (FDI) have changed the mechanism for financing development globally. Over reliance on the extractive industry particularly, minerals, oil and gas has compromised the potential of most resource rich countries in Africa from mobilising resources from the sector. This has been exacerbated by lack of transparency and accountability mechanisms along the value chain, exportation of raw materials without any form of beneficiation and failure to diversify to the rest of the economy. Malpractices by multinational corporations affect this sector more than any other due to its complexity, primarily the fact that the sector requires high sunk costs, and the resources are non-renewable.
AFRODAD, through it’s DRM department has set the following objectives which it’s working on to meet development in Africa.
- Strategic Objective 1: To advocate for a fair and effective tax system for financing;
- Strategic Objective 2: To contribute to the strengthening of extractive industries revenue management in Africa;
- Strategic Objective 3: To advocate for and mobilise support for formulation and implementation of rules and regulations to tackle Illicit Financial Flows from Africa.