Africa, renowned for its extractive activities, is rich in strategic mineral wealth. These minerals are crucial for the clean energy solutions industry and offer unique opportunities for green industrialization and sustainable, inclusive development on the continent.

Opportunities in the race for critical metals

The race towards sustainability presents a major economic opportunity for Africa’s mining sector. The accelerating digital and energy transitions are boosting global demand for essential minerals. With around 30 % of the world’s mineral reserves, Africa holds significant deposits of these strategic resources. These minerals not only promise a green industrial revolution but also generate substantial income to improve the often precarious living conditions of many Africans.

Graph

Upward trend in global demand for essential minerals

Cobalt, manganese, graphite, copper, and lithium are crucial in the new era of sustainability and carbon neutrality. These elements are essential for manufacturing green technologies and enhancing global connectivity. The future of the electric vehicle industry and clean energy sources like wind power and photovoltaic panels depend on them.

According to the International Energy Agency (IEA), global demand for cobalt is expected to rise by 70 % between 2017 and 2022, with continued growth anticipated. This trend benefits African producer countries, particularly the Democratic Republic of Congo (DRC). Other minerals are following a similar trajectory. Demand for nickel is increasing by 40 %, and copper demand is projected to grow by 45 % by 2030. The IEA also predicts annual lithium consumption will surge from 126,000 tonnes in 2022 to 1.3 million tonnes by 2025.

Africa’s strategic resource potential

Africa boasts significant manganese deposits, with Gabon ranking as the world’s third-largest exporter of this essential mineral. In the copper sector, the Democratic Republic of Congo (DRC) leads the continent and holds the third position globally. By 2026-2027, its production capacity is expected to surpass that of Peru. Additionally, South Africa, Tanzania, Malawi, and Mozambique possess substantial reserves of rare earths, crucial minerals for renewable technologies.

South Africa, often referred to as the rainbow nation, dominates the global market for platinum, which is vital for producing green hydrogen. Zimbabwe and Botswana are also significant producers in this sector. Despite Africa’s considerable mining potential, the continent has not fully capitalized on these opportunities. Currently, African countries capture only 40 % of the potential revenues from these valuable resources.

Graph

Optimizing the benefits of minerals for development

The green revolution presents an opportunity to uplift millions of people from precarious conditions. The exploitation of mineral resources offers a solution to the economic challenges stemming from the global crisis, budget constraints, and high debt levels. Rebeca Grynspan, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), echoed this sentiment during the organization’s 60th anniversary celebration.

The event addresses strategies for optimizing the exploitation of African minerals. Discussions will focus on :

• revenue mobilization
• integrating regional value chains
• increasing investment in infrastructure, skills and innovation to support sustainable mineral industrialization and climate action.

Promoting the creation of added value

Ms. Grynspan advocates for a new paradigm focused on creating added value at the national level to achieve this crucial objective. Emphasizing regional integration and building local community capacities are also essential. This approach represents a significant departure from the current extractive model, which often leads to high dependency among resource-rich economies.

The valorization of strategic and critical minerals positions Africa as a key player in green industrialization. Transforming these minerals into « made in Africa » batteries will stimulate other sectors like electric vehicles. This revolution supports the electrification of transport systems, the shift to renewable energies, and the reduction of emissions from polluting industries. Ultimately, green industrialization creates quality jobs and enhances Africa’s competitiveness in the global market for sustainable technologies.

Call for justice and equality

UNCTAD Deputy Secretary-General Pedro Manuel Moreno emphasizes the need for justice and equality in the exploitation chain of these minerals, in the context of global energy transition and sustainable development in Africa. He warns against a mining boom resembling traditional large-scale mining, which historically has not benefited society as a whole. Such models tend to concentrate profits among investors and a minority, rather than distributing them equitably across all levels of the workforce. This approach could perpetuate harmful cycles of traditional mining practices that have negative impacts on many economies.

Restructuring mining standards

Vice-President of the African Union Commission, Monique Nsanzabaganwa, stresses the necessity for a fresh approach and strategy in governing mining sector policies. Some countries, like Morocco, currently lack clear legislation regarding strategic and critical minerals. To position Africa as a new global growth pole through the exploitation of minerals essential for sustainable development, fair international structures and systems are imperative.

There is also a pressing need for regulatory and structural efforts. However, certain existing and future standards could hinder African nations’ efforts to enhance value addition and creation. It is paradoxical that the continent lacks confidence in its own certification systems, often conforming minerals to external standards before re-importing them to Africa for beneficiation or trade.