The report argues that commodity-dependent economies in Africa should focus on three major challenges. First, governments should save sufficiently during commodity booms to support consumption and investment once commodity prices decrease. Limiting spending when the coffers are full is difficult, given poor countries’ enormous development needs and the near-impossibility of predicting commodity prices accurately. Nevertheless, many countries have clearly saved far too little and even borrowed on the basis of temporarily high revenues, leading to debt crises and deep recessions once prices collapse. Governments can use fiscal rules or sovereign wealth funds to help save revenues from booms. Restructuring of mining companies’ contracts during commodity price booms, through profit-sharing agreements or linking taxes with price changes, is also critical. Moreover, the risks inherent in volatile commodity markets can be shared with extractive industry firms or hedged in forward or futures markets.