PWYP: Transition minerals could boost Africa’s GDP by $24bn annually

Africa has the potential to significantly increase its GDP by at least $24 billion annually and create 2.3 million new jobs by implementing manufacturing and trade policies that focus on extracting more value from the trade in transition minerals. This groundbreaking revelation comes from Publish What You Pay, an organization advocating for transparency in the natural resource sector. Ketakandriana Rafitoson, the Executive Director of Publish What You Pay, highlighted the importance of African countries developing their own strategies to maximize the benefits of their mineral resources. Rafitoson emphasized the need for African nations to collaborate in processing, refining, and manufacturing energy transition minerals within the continent. By specializing in different aspects of the value chain where they hold a competitive advantage, African countries can establish globally competitive industries. The completion of the African Continental Free Trade Area is seen as a crucial step towards enabling access to clean energy components and technologies at lower costs, ultimately fostering the growth of domestic industries. Despite the promising opportunities presented by transition minerals, Rafitoson acknowledged the challenges ahead. One major obstacle is the lack of technology transfer necessary for effectively processing these minerals. Additionally, African countries currently only export 2% of energy transition minerals to other African nations, indicating a need for intra-continental trade enhancement. Countries like the Democratic Republic of Congo, South Africa, Sudan, Zambia, and the Republic of Congo have the potential to significantly increase their export of processed mineral products. To address these challenges and maximize the benefits of transition minerals, Rafitoson stressed the importance of strong governance, accountability, and respect for human rights in the mining sector. She underscored the need for implementing safeguards to protect ecosystems and the rights of indigenous and local communities affected by mining activities. By upholding principles of free, prior, and informed consent, African nations can ensure that the extraction of mineral resources is conducted in a sustainable and ethical manner. The prospect of boosting Africa's GDP by $24 billion annually and creating millions of new jobs hinges on concerted efforts to enhance value addition, promote transparency, and improve governance throughout the mineral value chain. By seizing the opportunities presented by transition minerals and clean energy components, African countries can chart a path towards economic growth, job creation, and sustainable development.