N’Djamena: The African Development Bank Group (www.AfDB.org) has successfully concluded the Chad leg of the training and policy dialogue under the GONAT initiative (Governance of Natural Resources in Transition and Fragile States), which focuses on improving natural resource governance in fragile and transitioning countries. Launched in 2023, the GONAT initiative carried out diagnostic studies, prepared training modules, and is now embarking on a series of in-country training sessions and policy dialogues aimed at helping African countries build capacity to tackle illicit financial flows (IFFs) and better manage resource-backed lending.
According to African Press Organization, following previous sessions in the Central African Republic and Sierra Leone, Chad became the third country to host this high-level GONAT policy dialogue, focused on promoting more transparent and accountable management of extractive resources. The next sessions are scheduled for August in the Democratic Republic of Congo and Mozambique. Strengthening overall governance and transparency in the natural resource sector is a necessary step in reforming the design, governance, monitoring, and implementation of IFFs, illegal natural resource trade, and resource-backed lending in Africa.
The GONAT initiative is helping address these issues and ensuring that Africa harnesses its natural wealth for resilient growth and development, said Solomane Koné, Director of the African Natural Resources Management and Investment Centre. Natural resource governance cannot succeed in isolation. It requires coordinated action across institutions, informed by data, and grounded in local realities. Through initiatives like GONAT, we aim to equip countries with the tools and partnerships needed to build resilient, accountable systems, stated Dr. Solomane Koné.
Each year, IFFs cost the African continent tens of billions of dollars, undermining efforts to mobilize domestic resources for essential infrastructure and social services. Like many other countries, Chad is not immune to this challenge. “Illicit financial flows are one of the major obstacles to development in Africa. According to the African Development Banks African Economic Outlook, the continent loses an average of nearly $90 billion annually due to IFFs – about 4% of its GDP,” said Eric Ogunleye, Director of the Banks African Development Institute.
Discussions also explored the growing use of resource-backed lending – financing mechanisms secured by future revenues from oil or minerals. While these loans can provide quick access to capital, they carry risks of over-indebtedness and heightened vulnerability to commodity price fluctuations. Jointly organized by the African Development Institute (ADI) and the African Natural Resources Management and Investment Centre (ECNR), the workshop combined technical sessions, case studies, group work, and policy dialogue.
The final day, 25 July, was dedicated to a policy dialogue bringing together decision-makers and key stakeholders. The objective was to share GONATs findings and recommendations and to explore how they could be incorporated into national policies, particularly in combatting illicit resource trade and monitoring resource-backed lending. The workshop concluded with a series of recommendations, including reforming mining sector laws and institutions and enhancing transparency and public disclosure around extractive activities.
Should a second phase of the GONAT initiative be designed, we would strongly encourage it to focus on key strategic areas for Chad’s natural resource sector – including geological studies, digital cadastre expansion, revenue management, and capacity building across our institutions. Strengthening national systems and human capital is essential for turning resource wealth into sustainable development, stated Mme Kadidja Hassane Abdoulaye.