In the late 19^th century, Africa experienced a systematic extraction of resources primarily aimed at enriching colonial powers as the colonial administrators-imposed structures focused on agricultural production and extraction of minerals and other natural resources (Rodney, 1972). “The purpose of colonial powers was not only direct domination through acts of violence but also indirect rule by harnessing local custom to a larger colonial project” (Wu, 2024). According to Fanon (1963), the colonizers implemented an exploitative model that not only served to develop the motherland (Europe) but also facilitated economic systems that prioritized the colonizer’s interests at the expense of the natives or colonized. This colonizer and colonized relationship marked by violence dehumanizes both the colonized and the colonizer, necessitating a revolutionary response for true liberation as the colonized reclaim their identity and autonomy (Fanon, 1963).

Heldring & Robinson (2012) also contend that the aftermath of colonial policies left a predominantly negative legacy where colonial rule disrupted indigenous economic practices and replaced them with systems that served colonial interests. For example, the colonizers introduced a system of cash-crop agriculture that changed from subsistence farming to the production of cash crops for export, and this practice often resulted in food insecurity and economic instability for the local communities (Morten, 2016). Hence, this colonial practice reinforced a capitalist structure that relies on foreign markets, enhancing a cycle of dependence that remains powerful even in the current African economic structures.

Furthermore, the phenomenon commonly referred to as the “resource curse” also influences the current economic landscape of Africa. In Sub-Saharan Africa, for instance, Demissie (2014) argues that these resources on the African continent have often led to corruption, mismanagement, and conflict rather than prosperity, and this is what the resource curse means. The empirical evidence presented by Kurečić and Seba (2016) also supports this assertion and demonstrates that the presence of natural resources in Africa has resulted in economic instabilities and conflicts rather than sustainable development. They argue that “the majority of countries, which are extremely rich in natural resources, have no positive benefit from them…they experience extremely low economic growth and are faced with different problems, which are linked to natural resources” (Kurečić & Seba, 2016). Among all these countries rich in natural resources in Sub-Saharan Africa, only Botswana has succeeded in becoming an upper middle-income country to use its natural resources (Demissie, 2014).

Most other resource-rich countries in Africa are still suffering from this resource curse phenomenon. “Oil and mining ventures are arguably the most lucrative businesses in Africa, generating billions of dollars in revenues annually. But these billions have typically been squandered” (Mailey, 2015, p. 5). For example, Nigeria still faces significant challenges, including poverty, inequality, and corruption, despite its vast oil reserves. Angola also heavily relies on oil exports but still struggles with poor governance and lack of economic diversification (Mailey, 2015). The same as the Democratic Republic of Congo, which is rich in minerals like cobalt and copper, yet plagued by conflict and exploitation of resources. On the other hand, one can look at Equatorial Guinea, which has significant oil revenues but remains engrained in high levels of inequality and poor living standards (Kurečić & Seba, 2016).  

Colonial legacy has amplified this resource curse phenomenon, contributing to the economic vulnerability of Africa, and this keeps the continent dependent and unable to achieve economic independence. As Rodney argues, colonial powers systematically exploited African resources, fueling their own industrialization while leaving the continent impoverished and dependent. “The underdevelopment of Africa is not an accident; it is a direct result of the economic exploitation by the European powers” (Rodney, 1972). Mailey (2015) maintains that the predatory investment practices in African extractive industries cause inequalities and slow development whereby only a few groups of people benefit from these resource extractions, while the local communities remain marginalized and deprived of resources that are supposed to develop their conditions.

Williams (2021) adds that Western European countries sought to obtain raw materials and natural resources at the absolute cheapest prices possible, without any regard for the impact on the people of the colonies they plundered. For Getachew (2019), there is a need to reinforce self-determination and economic independence in post-colonial Africa. She contends that self-determination has been essential in shaping global politics but has also been co-opted by imperial interests. Then, the understanding of self-determination should go beyond mere political independence to also encompass economic and social justice (Getachew, 2019). This reliance of African countries on foreign investment and external markets as a current capitalist structure undermines efforts to build autonomous economies capable of supporting sustainable development. Similarly, Wengraf (2017) argues that colonial legacies still manifest in the current imperial structures that keep exploiting African resources through unfair economic processes. Even the concept of “development” in the African context continues cycles of dependence because this term is often framed within external narratives that do not necessarily align with the realities of local populations.

 For instance, “the CIA’s interventions were often justified as efforts to promote stability and democracy, but in reality, they frequently destabilized governments and undermined self-determination” (Williams, 2021). From this assertion, one can argue that the current capitalist structures in Africa are not only influenced by the foreign investment and exploitation of resources, but also knowledge production. The definition of concepts like development or democracy, is often framed in the western context that undermines the African contexts (the realities of the local populations) and this causes some sort of epistemic violence where Africa remains dependent in the process of interpreting and implementing these terminologies. 

Some people would argue that Africa is underdeveloped and still faces economic changes in the modern world because of other internal factors such as corruption, governance issues, and tribalism. Even though some of these internal challenges might be accurate in the African context, it is crucial to note that the same internal challenges, such as corruption and tribalism, were reinforced and introduced during colonialism. “The forces underlying African poverty are far from reducible to problems of ‘corruption’ and ‘governance,’ but rather are rooted in historic relationships of exploitation within a larger capitalist system, where political and economic strategies on the part of the West came to the fore and were advanced at key moments” (Wengraf, 2017). This underscores how the current economic systems in Africa cannot be separated from the colonial legacy whose practices keep the continent underdeveloped even in the post-colonial era.

In order to address the legacies of colonialism on the current capitalist structures in Africa, it is important to reform economic policies built on colonial exploitative capitalist structures and reform other political and social paradigms that have shaped African societies since independence. As Wu (2024) points out, a thorough analysis of colonial history and its continuing effects is necessary to promote economic progress and reduce political instability. Furthermore, it is also vital to strengthen government institutions to ensure that there are functional institutions capable of managing resources effectively and equitably in a way that benefits the local communities and which are free from external interference, especially from Western powers (Williams, 2021). This necessitates both the active participation of local communities in decision-making processes and transparency in resource management.

Another important strategy to consider in this process is to invest in diverse sectors such as technology, agriculture, and manufacturing so that African countries can create more resilient economies that can withstand global economic challenges (Mailey, 2015). Additionally, African nations need to encourage local entrepreneurship to foster sustainable development because the support of small and medium-sized enterprises (SMEs) can stimulate job creation and improve living standards for local populations. Fanon (1963) also agrees that there should be significant social and economic structures post-independence to ensure that the interests of the general population are considered rather than serving only those of the national bourgeoisie.

The empowerment of local entrepreneurs can help African countries create jobs and stimulate economic growth from within and minimize reliance on foreign investment. Wu (2024) recommends that African nations resist unfair economic systems that sustain dependency and claim their rights in international trade agreements, and Wengraf (2017) also calls for global solidarity and cooperation to tackle the inequalities perpetuated by historical exploitation and current economic systems. The implementation of this collective work can help African countries leverage the continent’s resources and strengthen its position in the global economy.