Generate text that refutes this claim: Foreign companies gain most of the profits  The majority of investment in Africa by Trans National Companies (TNCs) goes towards resource extraction [1] . Many companies use transfer pricing, tax avoidance and anonymous company ownership to increase profits at the expense of resource abundant nations [2] . Production sharing agreements, where companies and states share in the profit of a venture, can often benefit the former over the latter. In 2012 Ugandan activists sued the government for one such deal where the country was to likely to receive only half the profits rather than three quarters [3] .  Kofi Annan, former United Nations Security General, has claimed that Africa’s outflow of funds by TNCs in the extractive industries is twice as high as inflows to the continent. Businesses such as Barclays have been criticised for their promotion of tax havens in Africa [4] . These allow TNCs to avoid government taxation for projects such as resource extraction, a symptom of the attitude of foreign companies to investment in Africa. The unfavourable inflow/outflow balance prevents reinvestment in Africa’s infrastructure, education and health services.  [1] African Development Bank ‘African Development Report 2007’ pg.110   [2] Stewart,H. ‘Annan calls for end to ‘unconscionable’ exploitation of Africa’s resources’ The Guardian 10 May 2013   [3] Akankwasa,S. ‘Uganda activists sue government over oil Production Sharing Agreements.’ International Bar Association 01/05/2012   [4] Provost,C. ‘Row as Barclays promotes tax havens as ‘gateway for investment in Africa’ The Guardian 20 November 2013
ss economic policy international africa house believes africans are worse
Resources are not the problem, bad management and agreements are the problem here. The presence of Foreign Direct Investment (FDI) in resource extraction can have a more positive impact than if it was absent. The presence of FDI is often associated with increased bureaucracy efficiency and rule of law [1] . There have been attempts by Western governments to curtail illicit transactions as well. In 2013, the British government spearheaded the Extractive Industries Transparency Initiative aimed at encouraging accountability from TNCs [2] . Governments control the resources; they simply need to be more willing to fight, and prevent corruption, to get a better deal.  [1] Bannerman,E. ‘Foreign Direct Investment and the Natural Resource Curse’ Munich Personal RePEc Archive 13 December 2007   [2] Duffield,A. ‘Botswana or Zimbabwe? Exploiting Africa’s Resources Responsibly; Africa Portal 12 December 2012