The Africa Governance Report reserves constitute eight per cent of the world’s stock, while those of natural gas amount to seven per cent. Minerals account for an average of 70 per cent of total African exports and about 28 per cent of its gross domestic product. Recent discoveries of oil, gas and minerals in some countries could, in future, significantly boost government revenues. Table 5: Africa’s Mineral Endowments Mineral Production Rank Reserves Rank Phosphate 27% 1 66% 1 Gold 20%1 42% 1 Chromium 40%1 44% 1 Manganese 28% 2 82% Vanadium 51% 1 95%1 Cobalt 18% 1 55%+1 Diamonds 78% 1 88% 1 Aluminium 4% 7 45% 1 Platinum group metals (PGMs)54% 1 60%+1 1 Also, Titanium (20%), Uranium (20%), Iron (17%), Copper (13%), etc. Source: African Mining Vision 2009. Despite the abundance of natural resource, social development is still lagging. Evidence from several institutions and studies point to poor governance as the major obstacle to the development of Africa’s potential. In other words, the proper management of Africa’s natural resources can lead to better human and economic development. Poor implementation of natural resource governance in the continent, due to weak institutions and policies, often results in short-term gains rather than long-term development.52 Another problem that prevents countries from benefiting from their natural resources is the state and structure of Africa’s extractive industries. Most countries on the continent are still exporting raw or lightly processed commodities53, a sign of poor natural resources management and inadequate prioritisation of policies and implementation. Africa’s response to the paradox of great mineral wealth existing side by side with pervasive poverty was articulated in the African Mining Vision (AMV) that was adopted by the Summit of Heads of State in February 2009. This vision called for “transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socioeconomic development”.54 If implemented, the potential for African countries to finance the AU Agenda 2063 and UN Sustainable Development Goals would be significantly boosted. Managed prudently, extractive industry investments can catalyse economic development and diversification, skills development and technology transfer. Extractive industries would then emerge as a powerful engine for economic growth and development. 52 United Nations Conference on Trade and Development (UNCTAD), Extractive Industries: Optimising Value Retention in Host Countries (New York and Geneva: United Nations, 2012), 53 United Nations Economic Commission for Africa (UNECA) Sub-regional Office South Africa, ‘Report of the ad-hoc expert group meeting (AEGM) on industrialisation for economic transformation and sustainable development in southern Africa: addressing the gaps’, Addis Ababa, March 2013. 54 The AMV has seven pillars: A knowledge-driven African mining sector that catalyses and contributes to the broad-based growth and Page 71 of 96