Africa: How Africa Can Make Demand for Its Mineral Wealth a Race to the Top

Without a collective vision and commitment to transparency, Africa’s vast mineral resources may only benefit the Global North.

This week, the Mining Indaba begins in Cape Town, drawing industry leaders, investors, and stakeholders united by a common interest in tapping into Africa’s vast mineral wealth.

The world is hungry for the minerals needed to power the net-zero energy transition, and Africa’s significant reserves of minerals critical to this transition – such as cobalt, manganese and graphite – means the continent’s natural resources are in huge demand.

African leaders also see this as a great opportunity. Yet recent work by Global Witness reveals that 71-81% of mining production of cobalt, copper and lithium is controlled by companies from wealthier and major consumer countries, leaving African nations at the bottom of the mineral value chain.

Nonetheless, there are seeds of hope being sown across the continent. The energy transition offers countries and communities the opportunity to diversify energy use, and onshoring more of the value chain could unlock significant economic benefits.

The energy transition presents a pivotal moment for African countries to leverage their mineral wealth, forge new global alliances, and drive industrialisation and inclusive economic growth.

But how can Africa unite to grasp this opportunity?

Strength in unity

For too long African nations have allowed themselves to be pitted against one another, vying for foreign investment in a race to the bottom for royalties and taxes. History has shown that many deals struck under these conditions have not delivered meaningful benefits to local populations.

However, in recent years, there has been a growing emphasis on regional cooperation schemes.

The African Union through the African Mineral Development Centre (AMDC) in partnership with the African Development Bank, the United Nations Economic Commission for Africa (UNECA), the African Legal Support Facility (ALSF) and other African institutions, has developed Africa’s Green Minerals Strategy to actively engage with the emerging conditions for a just and fair transition for Africa.

The African Green Minerals Strategy is a blueprint for mineral-based industrialisation. Value addition is a key starting point to ideally create a platform for stakeholders to model legal and institutional frameworks that will foster transparency, community engagement, decision-making, environmental conservation, and the protection of human rights.

If the member states of the African Union unite under a shared vision, they could strengthen their position and collective resources when negotiating with multinational corporations and foreign governments.

Crucially this could also redefine Africa’s role in the global scramble for minerals and ensure a more equitable future.

Leveraging geopolitical dynamics

The current geopolitical landscape also provides mineral-rich African countries with a unique opportunity to exert significant influence on the global trading of minerals.

While China’s critical minerals industry is well established, the US, EU and other major powers find themselves playing catch-up. The result is a rush of new legislation and associations, such as the EU’s Raw Materials Act and the Minerals Security Partnership spearheaded by the US. Oil rich nations of the Middle East are also wading in to provide financing to secure their place in the next chapter of world energy.

Amidst this geopolitical jockeying, Africa has a chance to demand a race to the top. New deals should move beyond traditional extractive models and instead focus on value addition and investment in local communities. Technology transfer and local skill building should be a mandatory part of any new project, ensuring that the most advanced and least environmentally harmful mining techniques are used, and human and labour rights are respected.

Furthermore, Africa has an opportunity to prioritise its own energy ambitions to ensure that African countries benefit from net-zero technologies and can achieve low carbon electrification for communities in the long-term.

Best bargaining position

Making these outcomes a reality will require both cooperation and vision. The African Green Minerals Strategy, modelled on the backbone of African Mining Vision, provides a blueprint for establishing and enforcing resource governance frameworks that can go beyond single country borders.

To realise this vision, efforts and resources must focus on strengthening transparency and accountability to combat corruption, attract long-term quality investment, and ensure mineral wealth benefits citizens.

Sign up for free AllAfrica Newsletters

Get the latest in African news delivered straight to your inbox

Success!

Almost finished…

We need to confirm your email address.

To complete the process, please follow the instructions in the email we just sent you.

Error!

There was a problem processing your submission. Please try again later.

Plenty of other resource-rich countries find themselves in a similar position in negotiating trade deals with global powers for their minerals and determining how their natural resources will shape their future economies. Building strategic alliances and knowledge sharing with other resource-rich nations will amplify bargaining power and foster a more equitable and just energy transition.

The Mining Indaba taking place in Cape Town provides a platform to come together and discuss the importance of cooperation to achieve the key goals of true benefits sharing, community consultation and involvement, and universal electrification in this midst and era of decarbonisation and energy transition.

With the world looking on, it is also an opportune moment for other global powers to recognise Africa’s right to a fair and equitable share of its own mineral resources, as well as its right to safeguard its environmental and economic future.

Alaka Lugonzo is a Senior Civil Society Advisor at Global Witness.

ADVERTISEMENT