Management of Natural Resources in Sub-Saharan Africa
March 21-22, 2012
In many sub-Saharan Africa (SSA) countries, extractive industries—oil, forestry, mining—account for a significant share of output and a major share of export earnings. Rising commodity prices have further boosted economic growth and exports in many countries.
Against this background, one of the objectives of this conference is to present the latest analysis and thinking on the macroeconomic management of natural resource revenue, and elaborate on how the policy dialogue with SSA countries has evolved. It will also cover tax policy, administration, and regulatory frameworks conducive to good management of natural resources.
|WEDNESDAY, MARCH 21, 2012: MACROECONOMIC MANAGEMENT OF NATURAL RESOURCES|
Welcome by Matata Ponyo Mapon, Minister of Finance, Democratic Republic of the Congo
Opening Remarks by Antoinette M. Sayeh, Director, African Department, IMF, on the Challenge of Managing Natural Resources in Low-Income Countries
Session 1: Natural Resource Flows and Macroeconomic Policies
Managing the windfall from increasing resource revenue in good times and dealing with spending cuts when a “boom” fades, Dutch disease and international competitiveness, concerns about the coordination of reserve/monetary, and fiscal policies and external sustainability are major policy issues that are as pertinent today as they were yesterday. This session sets the stage for the conference through a discussion on the latest thinking about this age-old problem.
Chair: Maria Kiwanuka, Minister of Finance, Planning, and Economic Development, Uganda
Catherine Pattillo, Advisor, Strategy, Policy, and Review Department, IMF
Anthony Venables, BP Professor of Economics, Oxford University (invited)
Mattia Pellegrini, Member of the Cabinet of Antonio Tajani, Vice-President of the European Commission
Fiscal policy stands center stage in resource-rich countries because natural resource revenue is finite and highly volatile. This raises complex issues of sustainability and intergenerational equity, and financial management and the appropriate savings vehicles, including Sovereign Wealth Funds. This session explores the operational aspects of fiscal policy from a theoretical and practical perspective.
Chair: Matata Ponyo Mapon, Minister of Finance, Democratic Republic of the Congo
Sanjeev Gupta, Deputy Director, Fiscal Affairs Department, IMF
Joe Asamoah, Managing Director, EnerWise Africa
Olgario de Castro, Chairman, Investment Advisory Board, Petroleum Fund, Timor-Leste
Session 3: Public Investment as the Engine of Sub-Saharan African Growth
Natural resource revenue has augmented fiscal space in many sub-Saharan African countries, creating the potential for public investment to be the engine of growth and poverty reduction. But in the past, scaling up public investment has often led to disappointing results. This session explores the pros and cons of scaling up investment, measures to enhance public investment efficiency and the potential constraints, and country experience.
Chair: Gilbert Ondongo, Minister of Finance, Budget, and Public Portfolio, Republic of Congo
Paul Collier, Professor of Economics and Director of the Centre for the Study of African Economies at Oxford University
Anand Rajaram, Sector Manager (Africa Region), World Bank
Pedro Conceição Couto, Vice Minister of Finance, Ministry of Finance, Mozambique
Session 4: Raising the Bar on Governance and Transparency in Managing Natural Resources
Good governance and transparency in the management of natural resources is essential for accountability and getting the most from the exploitation of a country’s resource endowment. A broad-based panel will lead a discussion on the best ways to accomplish these goals.
Chair: Tim Bittiger, Rregional Director for Francophone Africa and Europe, Extractive Industries Transparency Initiative
Gavin Hayman, Director of Campaigns, Global Witness
Jonathan Hobbs, Senior Policy Advisor (Natural Resources Governance—Trade and Investment), WWF
Zainab Ahmed, Executive Secretary, Nigeria EITI
Zhang Yongpeng, Research Fellow, Chinese Academy of Social Sciences
Reception/Dinner (hosted by the DRC authorities)
|THURSDAY, MARCH 22, 2012: MICROECONOMIC ASPECTS OF MANAGING NATURAL RESOURCES|
Session 5: How the Government Gets its “Fair Share”
Relatively strong commodity prices in recent years combined with declining external financial support for low-income countries has many policy makers in resource-rich countries asking how government can get its fair share of resource wealth. This session explores the many issues surrounding the role of the public sector in managing natural resources: public versus private ownership; sharing of risks and rewards between government and private-sector investors; and the experience of in managing the interests of the state and multinational enterprises.
Chair: Holger Grundel, Senior Advisor, Department for International Development, United Kingdom
Philip Daniel, Deputy Division Chief, Fiscal Affairs Department, IMF
Kathryn McPhail, Director, International Council on Mining and Metals
William Curtis, Secretary General, Ministry of Mines and Geology
Session 6: Administering and Efficient Management of Natural Resource Revenue When Capacity is Weak
New policy instruments like the resource rent tax are gaining ground as the means to capture more revenue from the natural resource sector. But administering such measures and projecting the tax take is challenging, especially if capacity is weak. In this "hands-on" session, experienced practitioners share their views on what works and what does not in this setting.
Chair: Roger Nord, Deputy Director, African Department, IMF
John Calder, IMF Technical Expert
Antoine Heuty, Deputy Director, Revenue Watch Institute
Chansa Shambuluma, Acting Commissioner Domestic Taxes, Zambia Revenue Authority
Martin Kabwelulu, Minister of Mines and Acting Minister of Oil, Democratic Republic of the Congo
Roundtable discussion: Lessons and the Way Forward
Moderator: Anthony Venables
Participants: Antoinette Sayeh, Minister Matata, Minister Kiwanuka, Vice-Minister Couto, Kathryn McPhail, and Gavin Hayman
Cocktail (hosted by the DRC authorities)