Maximizing Africa’s critical minerals potential

As the global push for green energy gains momentum, Africa finds itself in a unique position. Despite being home to 40 percent of the metals essential for the transition, the continent has received a mere two percent of the three trillion dollars invested in the sector over the past decade. This imbalance raises questions about how Africa can fully leverage its underground resources to drive economic growth and development. In a recent interview on CNBC Africa, Clovis Freire, Chief for Commodity Research and Analysis Section at UNCTAD, shed light on the challenges and opportunities facing Africa in maximizing its critical minerals potential. Freire highlighted the importance of moving beyond a reliance on exporting raw materials and emphasized the need for beneficiation and value addition within the mining sector. One key theme that emerged from the discussion was the concept of structural transformation. Freire underscored the significance of diversifying economies beyond simply extracting and exporting minerals. He emphasized the need for downstream diversification to produce value-added products like batteries for electric vehicles, as well as upstream diversification to support the mining sector with goods, services, and infrastructure. Moreover, Freire stressed the importance of regional and continental collaboration in harnessing Africa's mineral wealth. He pointed out the Africa Mining Vision as a framework for collective action and highlighted examples of countries like Zambia and the Democratic Republic of Congo collaborating on battery precursor production. The interview emphasized that political will and strategic partnerships are vital in shaping a sustainable and prosperous mineral sector in Africa. Addressing the impact of geopolitics on Africa's critical mineral sector, Freire noted the increasing focus on diversification and resilience in global value chains. He highlighted the opportunity for developing countries to attract investments and establish beneficial partnerships in the evolving geopolitical landscape. By leveraging technological advancements and strategic alliances, African nations can amplify the value of their mineral resources and drive economic transformation. In conclusion, Clovis Freire's insights shed light on the multifaceted opportunities and challenges facing Africa as it seeks to harness its critical minerals potential. From promoting value addition and diversification to fostering regional partnerships and navigating geopolitics, the continent stands at a critical juncture in shaping its mineral sector's future. By embracing a holistic approach that transcends traditional models of resource exploitation, Africa can unlock new pathways to sustainable development and prosperity.