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Many studies claim that mineral resources impact negatively on economic growth particularly in developing countries. This paper briefly reviews this argument (the natural resources curse hypothesis) and subjects it to examination. The paper argues that poor performance is not an inherent characteristic of minerals‐driven economies. It considers mineral endowments a capital that can spur growth and reduce poverty in developing countries if deployed under appropriate conditions. The paper identifies the benefit streams of mining and the challenges for their equitable creation, investment, distribution and management. It articulates the conditions, success factors and strategies to maximizing the contribution of the minerals sector to growth and development in Africa. The entry points include creating a conducive and competitive policy, legal and regulatory environment and frameworks for business development; improving governance and management systems anchored on strong and capable institutions; opening up opportunities including capitalizing on the low entry barriers offered by artisanal and small‐scale mining; sharpening investment decisions; including the minerals sector in poverty reduction strategies and other national development plans; promoting linkages between the minerals sector and other sectors of the economy; empowering communities; establishing coalitions of change; and facilitating knowledge and competencies creation for more local processing and value addition. [ABSTRACT FROM AUTHOR]

Using as a point of departure the observations contained in the document ‘Our Common Interest. Report of the Commission for Africa (March 2005)’, Chapter 5: “Countries with economies dependent on one or a few primary commodities, particularly high‐value resources such as oil and other minerals, are often poor, have weak and less accountable governance systems, and are more vulnerable to violent conflict and economic shocks”, the article sets out to explore the broader trends and specific conditions which might help explain why mining activities in Africa may well be at present and increasingly in the future, linked to issues of security. To this end the paper explores various hypotheses which have been put forward such as the following: In an attempt to understand what is driving present trends, by broadening the perspective adopted and including an analysis of the reform process of which mining policies are a part, the paper echoes the conclusions of the Commission to the effect that ‘Responsibility for resolving conflict in Africa should lie primarily with Africans, but there is much more the developed world can do to strengthen conflict prevention’ and to that end, the articles seeks to identify specific measures of policy reform which might substantiate this observation. [ABSTRACT FROM AUTHOR]