Tomorrow (26 November), the African Union (AU) Peace and Security Council (PSC) will convene its 1246th session to deliberate on enhancing mechanisms for curbing the illegal exploitation of natural resources by armed and terrorist groups in Africa.

The session will commence with opening remarks from Jean Léon Ngandu Ilunga, Permanent Representative of the Democratic Republic of Congo (DRC) to the AU and Chairperson of the PSC for the month of November, followed by a statement from Bankole Adeoye, Commissioner for Political Affairs, Peace and Security (PAPS). Presentations are also scheduled from Marie-Antoinette Rose Quatre, Chief Executive Officer of the African Peer Review Mechanism (APRM) Continental Secretariat and representatives of other invited institutions.

The issue of illegal resource exploitation by armed groups is especially relevant to the DRC, making this session particularly fitting under the DRC’s chairship. According to a report from the United Nations Environment Programme (UNEP) and partners, each year, resources such as gold, minerals, timber, charcoal, and wildlife products, including ivory—valued at USD 0.7–1.3 billion—are illegally extracted and smuggled from conflict zones in eastern DRC. The report further reveals that this revenue sustains at least 8,000 armed fighters annually, allowing previously defeated or disarmed groups to reemerge and destabilise the region. Moreover, the income from these activities finances at least 25 armed groups, posing a continued threat to peace and security in eastern DRC. The most recent PSC-United Nations Security Council (UNSC) annual joint consultative meeting, held in October, recognised the linkage between the illegal exploitation of natural resources, illicit trade in such resources, and the proliferation and trafficking of arms as one of the major factors fuelling and exacerbating conflict in eastern DRC.

The PSC has increasingly addressed this issue in recent years, recognising the link between the illegal exploitation of resources and conflict. Notably, PSC’s 575th session, held in February 2016, was dedicated to the issue of natural resources and conflicts in Africa, where the Council highlighted how natural resources, while essential for economic growth, have fuelled conflict in vulnerable countries. The PSC further underscored that in most of the protracted conflicts in the continent, the issue of access, control and distribution of natural resources constitute a major underlying cause that should effectively be neutralised. Further sessions, including 776th, linked illicit financial flows, transnational crime, terrorism, poaching, and weapons proliferation to the illegal exploitation of resources, particularly by non-state armed groups.

Reports by the AU Commission chairperson on combating terrorism have repeatedly underscored the role of natural resource exploitation as a key funding source for terrorist groups in Africa. For example, in a report to the 1040^th PSC session, it was noted that terrorist groups in Africa fund operations through the illegal exploitation of resources, extortion, and poaching, among other methods. Apart from the context of terrorism, the issue of sources of financing of conflict actors also prominently features in some of the country/region-specific files, notably in the DRC, the Central African Republic (CAR), Sahel region and Lake Chad Basin region.

On the part of the UN Security Council, it adopted several resolutions including 2195 (2014), 2462 (2019), and 2482 (2019), which recognised the illegal exploitation of natural resources as a source of funding for armed and terrorist groups as well as criminal networks. In October 2022, Gabon convened a high-level debate on strengthening the fight against the financing of armed groups and terrorists through the illicit trafficking of natural resources during its presidency of the UN Security Council.

The attention to the issue stems from its widespread impact across the continent. Illegal exploitation spans from gold, diamonds, coltan, and uranium in the Great Lakes region; to gold, diamonds, forest resources, and phosphates in the Sahel; to natural gas, fishing, and fuel trafficking in the Lake Chad Basin; to charcoal and livestock smuggling in the Horn of Africa. Control over natural resources has fueled numerous civil wars in Africa, particularly in the late 20th century, as seen in Sierra Leone and Liberia. With the shift in conflict dynamics in the new millennium, marked by the rise of terrorism and proliferation of poorly organised non-state armed groups, including in the mineral-rich Sahel, such non-state armed groups now exploit these resources to fund their activities.

Several factors contribute to the prevalence of illegal resource exploitation in Africa. One key factor, highlighted in the PSC’s 575th session, is bad governance affecting natural resources, where mismanagement and inequitable distribution are identified as major underlying causes requiring effective countermeasures. Additional factors include limited state presence, inadequate law enforcement capacity, porous borders, and insufficient legal frameworks for resource management, as well as strong ties between armed and terrorist groups and illicit trade networks some of which with links in the supply chains of multinational extractive companies.

This exploitation imposes a massive economic toll, with Africa estimated to lose $50-100 billion in revenue annually, which affects GDP growth and deprives the local population of revenue. The human rights impact on local communities and environmental degradation from unchecked exploitation are equally severe. Meanwhile, it has become a lucrative business for armed and terrorist groups. The United Nations Office on Drugs and Crime (UNODC) estimates that illicit wildlife trafficking alone brings in $400 million annually, with Al-Shabaab reportedly earning over $20 million from illegal charcoal sales. The lucrative income from such exploitation also creates powerful economic incentives that sustain armed and terrorist groups, perpetuating violence and complicating conflict resolution in the continent. It is anticipated that the illegal exploitation of natural resources may intensify in the context of the heightening global scramble for critical or transition minerals which are essential for green technology.

Various mechanisms at regional, continental and international levels have been put in place to address this challenge. Key in this regard includes the Kimberley process, an international certification scheme and a multi-stakeholder trade regime established in 2003 to prevent trade of conflict diamonds. Today, 99.8 per cent of the world’s diamonds reportedly come from conflict-free sources, highlighting the effectiveness of the mechanism. The Protocol to the Statute of the African Court of Justice and Human Rights also criminalises the illicit exploitation of natural resources. At the regional level, the most cited initiative in the Great Lakes region is the Regional Initiative against the Illegal Exploitation of Natural Resources in the Great Lakes Region (RINR), being coordinated by the International Conference on the Great Lakes Region (ICGLR).

Tomorrow’s session will also focus on mechanisms to curb the illicit exploitation of natural resources by armed and terrorist groups. An essential starting point is understanding the complex nature of this issue, including the roles of various actors involved. In response to the AU Assembly’s call during its 16th Extraordinary Session, the AU Commission could initiate a study to explore the link between illegal natural resource exploitation, and armed conflict, including terrorism across the continent, examine foreign interests, and recommend strategies to address the issue.

Second, it is important to recognise that natural resources themselves are neither a blessing nor a curse; rather, their impact depends on governance. As noted during the PSC’s 575th session, effective, transparent, and equitable management of natural resources that prioritises the interest of the local population, communities and the country at large is critical. This requires a robust legal and institutional framework governing access, control, and extraction of natural resources.

Third, tackling illegal exploitation also depends on strong regulatory frameworks backed by effective enforcement mechanisms. Member States should invest in enforcement capacities and strengthen state presence to secure resources from misuse by criminal networks and non-state armed groups. This should include not only a strong financial regulatory regime but also an adequately empowered legal and institutional regulatory system that criminally and financially punishes any engagement in the extraction of natural resources without a permit that is secured following due process including environmental, social and human rights impact assessment.

Fourth, due to the cross-border nature of illegal exploitation, regional cooperation and information sharing are vital to secure borders and prevent illicit resource movements. Finally, considering the asymmetry of power between individual states and multinational extractive companies, which at times enables a weak system of natural resources governance, at the continental level, the AU should also be tasked to develop a continental treaty on the governance of natural resources that builds on and covers not only the resources covered under the AU Mining Vision but also those that fall outside of it. In addition, it should strengthen its sanctions regime to target individuals, entities, and groups involved in illegal resource exploitation. The AU should leverage the work of AU bodies such as the Working Group on Extractive Industries, Environment and Human Rights of the African Commission on Human and Peoples’ Rights, the AU Commission based Africa Mining Centre and the APRM as well as regional initiatives such as the ICGLR’s RINR.

The expected outcome of the session is a communiqué. PSC is expected to express concern over the increasing illegal exploitation of natural resources by non-state armed groups including terrorist groups as a major source of funding for their activities. It may highlight the detrimental impact of such exploitations on the developmental aspirations of African states and its role in perpetuating violence in the continent. The PSC may warn that the situation may further aggravate in the face of the growing fierce global rush for access to and control of critical minerals which non-state armed groups may take advantage of. It may emphasise the importance of various initiatives both at the AU and regional levels including the Working Group on Extractive Industries of the African Commission on Human and Peoples’ Rights (Banjul Commission), the African Mining Centre at the AU Commission and the ICGLR’s RINR. It is also expected to outline mechanisms to combat this issue, including strengthening regulatory frameworks at the state level on the access, control, and extraction of resources; enhancing enforcement mechanisms such as financial monitoring systems; and increasing state presence to exercise effective control over natural resources. At the regional level, the PSC may underscore the need for fostering cross-border cooperation and information sharing considering that non-state armed groups and criminal networks use the territories of neighbouring states as channels for processing proceeds from the illegal exploitation of natural resources. The PSC may also task the AU Commission, working in consultation with relevant AU bodies including the Working Group on Extractive Industries, Environment and Human Rights of the African Commission on Human and Peoples’ Rights, the APRM and the Africa Mining Centre, to develop a continental treaty on the governance of natural resources in Africa. Echoing the decision of the Malabo summit, the PSC may call on the AU Commission, or specifically the AU Counter Terrorism Centre (AUCTC), to conduct a study on the illegal exploitation of natural resources by armed and terrorist groups highlighting practical strategies for addressing this challenge.