The world is speedily racing towards a zero-carbon future.
Africa, with its abundant critical mineral endowment (lithium, cobalt, and copper), has been placed at the epicentre of this modern “gold rush”.
In a bid to avoid centuries-old characterisation as just rent seekers, many African countries are increasingly changing the model of mineral value chains. They are demanding more value addition, instead of the raw material exports that have been a prominent feature of their economies for many years.
This new wave of nationalism represents a new awakening among African countries that are eager to capture the benefits of their natural resource endowments.
The Critical Minerals Boom: Africa’s Strategic Leverage
To begin with, why has Africa become such a place of interest in the global critical minerals boom, just like the much-coveted village bride? The continent’s geological wealth is staggering.
It holds roughly 30% of the world’s known mineral reserves, including many that are essential for the manufacture of solar panels, wind turbines, and electric vehicle (EV) batteries. Specifically, the Democratic Republic of Congo (DRC) accounts for over 70 percent of global cobalt production, a key component of lithium-ion batteries.
Zimbabwe holds the largest lithium deposits in Africa, and is currently ranked 6th globally. South Africa, Gabon, and Ghana together dominate global manganese output, with South Africa alone holding 90 percent of global platinum group metal reserves, vital for green hydrogen technology.
Within ten years, the global demand for these minerals is projected to increase fivefold, creating a historic opportunity for African economies to transition from “pit-to-port” models to industrial powerhouses.
A Rebirth of Resource Nationalism?
Frustrated by decades of “jobless growth” where raw materials were exported cheaply and re-imported as expensive finished goods, African leaders are implementing aggressive new policies to reverse this trend. Many African countries have turned to adopt “nationalist” policies in response to this global demand for their resources.
Contemporary notions of resource nationalism come in diverse forms and shapes. Unlike the wholesale nationalization of natural resources, which was very rampant in the period immediately following independence, in the 1960s, this new era focuses on value addition and beneficiation.
Buoyed by the potential of critical minerals to drive industrialisation and economic growth, particularly the prospect of boosting employment, most mineral-endowed nations are now rewriting the story of how they treat critical minerals.
Zimbabwe, in 2022, banned the export of raw lithium (defying intense protests from Chinese investors) to promote the development of a domestic battery manufacturing industry.
Namibia followed suit in 2023, banning the export of unprocessed lithium, cobalt, manganese, and rare earth elements. In West Africa, Ghana has adopted a Green Minerals Policy that bans the export of raw lithium.
Additionally, President John Dramani Mahama, at an African Union event, announced that Ghana will ban the export of raw minerals, such as bauxite and manganese, from 2030.
The military junta in Mali has enacted a new mining code that allows the state to take up to 35 percent ownership in new mining projects. All these measures strengthen the resolve of African nations to move away from the past economic paradigm where the continent was reduced to exporters of raw materials.
Challenges and the Path Forward
While the call for Africans to own their natural resource wealth sounds palatable to most patriots, the path to industrialization is not without its stumbling blocks. Resource-based industrialisation requires critical infrastructure that is presently not adequately available in Africa.
The continent continues to battle with erratic electricity supply, poor road networks, a railway network that predates independence in the 1960s, and still-developing ports. Years of failure to align educational outcomes with national development priorities have left the continent with a shortage of highly skilled labour needed to drive industrialisation.
In this dire situation, banning the export of raw resources alone will not automatically catapult African countries to the table of the newly industrializing countries in Asia and Latin America. Without these “enablers,” bans can rather unintentionally suppress production or trigger legal disputes with foreign investors.
In the midst of this bleak picture, a bright light shines: regional cooperation. The African Union has developed the African Green Minerals Strategy to coordinate policies across borders.
Projects like the Lobito Corridor—a rail link connecting Zambia and the DRC to the Atlantic—demonstrate how infrastructure can bridge the gap between mines and global markets.
It has also been argued that, instead of developing their own resources at an insanely high cost that makes their products uncompetitive, African countries can explore joint ventures. For instance, Ghana can team up with Guinea, one of the world’s largest producers of bauxite, to develop an integrated aluminum industry that can realistically compete with others elsewhere in the world.
The truth of the matter is that at this current level of development, Africa cannot compete with countries like China when it comes to the processing of minerals.
Africa can no longer be a passive supplier in the global energy transition. By leveraging its critical minerals, the continent is rewriting the rules of engagement, ensuring that the green revolution also fuels its industrialization. But first, a good foundation must be laid to make this possible!
By Richard Ellimah- A Natural Resource Governance Analyst
Email: [email protected]
