KETAKANDRIANA RAFITOSON: Strike while the iron (and lithium) is hot

History warns us that simply having resources doesn’t guarantee prosperity. Africa has long been a supplier of raw materials, shipping cocoa, gold, diamonds, oil and now critical minerals, while others take in the profits from manufacturing and innovation. 

With vast reserves of transition minerals such as copper, lithium, cobalt and nickel, Africa has what the world needs to power clean energy technologies and reduce energy poverty. These resources are the building blocks for batteries, solar panels and electric vehicles — the backbone of the global energy transition.

However, without decisive action Africa once again risks losing its raw resources while others reap the benefits of the value-added industries they power. The continent now holds more than 40% of the world’s reserves of these transition minerals. The Democratic Republic of Congo alone has 60% of the world’s cobalt, a key element for electric vehicle batteries.

Despite this abundance Africa sees little of the economic benefits drawn by the exploitation of those resources. Most of its minerals are exported in raw form — 57% to China alone — with the real value added elsewhere.

Publish What You Pay recently released economic modelling that shows African countries could unlock $24bn a year in GDP and create 2.3-million jobs if it invested more in manufacturing these minerals domestically. Instead of simply supplying raw materials, Africa could become a global hub for clean energy innovation, reaping the benefits at home.

To avoid falling into the same old trap Africa must take control of its supply chains. The opportunity exits, but we need to act fast. By building industries that transform these minerals locally, Africa can capture more of the value that has traditionally flowed overseas. This isn’t just about resource extraction; it’s about economic sovereignty and creating industries that power Africa’s development.

It’s also about ensuring fair access to energy for our population. Africa is home to 600-million people without access to electricity. The minerals needed to build renewable energy systems are right beneath our feet, but instead of building infrastructure here we’re exporting them for others to develop. This must change.

Crucial platform

For this vision to become a reality Africa’s leaders must work together. The African Continental Free Trade Area (AfCFTA) is a crucial platform that can help African nations trade more easily with each other, especially when it comes to minerals. Right now just 2% of our mineral trade stays within Africa, an enormous missed opportunity. AfCFTA can help build regional value chains, reduce dependence on external markets, and foster home-grown industries.

In addition, the AU’s green minerals strategy, still in development, could provide a much-needed road map for regional integration. African leaders must commit to seeing this strategy through, ensuring the continent’s mineral wealth benefits Africans, not just global markets.

We can also do things better. Mining in Africa has long been linked to environmental degradation, displacement of communities and human rights abuses. This time, things must be done in a different way. Transition minerals, while crucial to the world’s green future, cannot come at the expense of African communities and ecosystems.

The global demand for transition minerals will only intensify. Wealthy nations are already positioning themselves to secure these resources for their benefit. The US is offering tax breaks to companies that process minerals domestically, while the EU aims to process 40% of its critical minerals within its borders by 2030. If Africa doesn’t act we’ll be left out of the most profitable segments of the value chain yet again.

The continent has a chance to change that narrative. We have the resources, the talent and the drive to develop industries that serve our people first. Co-operation, investment, good governance and strong policies are key. Africa must seize control of its future, ensuring that our mineral wealth translates into jobs, economic growth and energy security.

This is Africa’s moment. The world needs our minerals, but we must decide how they’ll be used. Will they power prosperity for someone else, or will they build a better future for Africa?

Dr Rafitoson is executive director of Publish What You Pay.