Natural Resources Revenue Management Strategies in African Countries

To date, the debate regarding the natural resource curse that is associated with developing countries that are blessed with natural resource abundance is inconclusive. This chapter addresses natural resource revenue management strategies in African countries. The background of the topic is presented by way of introduction. This is followed by a discussion on natural resource extraction and revenue management strategies. The Chapter argues that, concerning natural resource revenue management strategies, the permanent income hypotheses and bird-in-hand model remain dominant in the field. Following this, the specific models that have been crafted by governments in African countries to manage natural resource revenue are presented. From the literature, samples of these local strategies include, but are not limited to, the Petroleum Revenue Management Act (PRMA) (Ghana), the Petroleum Revenue Management (Amendment) Act, 2015 (Act 893) (PRMAA) (Ghana), the Nigerian Sovereign Investment Authority (NSIA), the Nigeria Infrastructure Fund (NIF), and the Fundo Soberano de Angola (FSDEA) (Angola). Consequently, the chapter ends with recommendations to improve the existing natural resource revenue management strategies in Africa.