By Thomas Chidamba

THE African Union has launched a continental strategy to ensure green mineral wealth fuels sustainable industrialisation, urging governments to move beyond raw exports and develop local processing and manufacturing capabilities.

The Africa’s Green Minerals Strategy, crafted by the African Minerals Development Centre in collaboration with the African Development Bank and the African Development Fund, outlines a clear path for transforming Africa’s abundant reserves of lithium, cobalt, nickel, and rare earths into powerful engines of economic growth.

Albert Muchanga, the Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, emphasised that Africa must grasp the opportunity presented by the global shift towards clean energy and digital technology.

“With Africa holding a significant share of the world’s green minerals, the continent stands at the crossroads of the global energy transition and global digital transformation,” Muchanga remarked during the launch of the strategy.
“As the world accelerates towards net-zero carbon emissions, demand for Africa’s green minerals is set to soar,” he continued. “Africa must move beyond raw mineral exports and build strong, integrated value chains that foster local beneficiation, job creation, and economic diversification.”

This strategy is viewed as a vital step in changing a long-standing trend where Africa exports raw minerals to developed nations without fully capitalising on the economic benefits.

Even though Africa holds nearly 30% of the world’s mineral reserves, many countries on the continent still rely heavily on commodity exports with little value added.

A crucial aspect of the plan includes setting up regional battery production hubs, developing electric vehicle supply chains, and investing in renewable energy infrastructure—areas that experts believe could significantly enhance employment and GDP throughout the continent.

However, a report from the United Nations Economic Commission for Africa in 2023 pointed out that poor infrastructure, fragmented policies, weak institutional capacity, and limited access to financing are significant hurdles to mineral beneficiation and industrialisation.

When it comes to major green mineral producers, the Democratic Republic of Congo stands out, boasting over 60% of the world’s cobalt reserves, while Zimbabwe is home to Africa’s largest lithium deposits.

Other important players in this space include Namibia, South Africa, and Madagascar, all of which are increasingly attracting the attention of foreign investors.

Critics warn that without robust governance frameworks and environmental protections, a rush for green minerals could end up resembling past resource booms that offered little benefit to the average citizen.

Civil society groups are advocating for inclusive development models and binding agreements to ensure that local communities see real benefits from mining activities.

Commissioner Muchanga highlighted the importance of coordinated efforts among African governments, private sector stakeholders, and civil society to turn this strategy into reality.

“Africa must seize the moment to develop its battery industry, electric vehicle supply chains, and renewable energy infrastructure,” he stated.

“By strategically leveraging its vast mineral wealth, Africa can play a significant role in the global transition towards a sustainable and green future.”

Economists believe that if executed correctly, this strategy could turn Africa into a significant contender in green technologies, all while tackling persistent development challenges.

Looking at examples from countries like Chile, which has effectively woven copper beneficiation into its industrial framework, we can see a possible model for Africa’s growth driven by its mineral resources.

Engineer Clever Sithole emphasized the importance of collaboration among African governments to maximize these opportunities.

He urged leaders to adopt innovative strategies, such as lowering distribution costs through a hub-and-spoke system, which could enhance efficiency and foster regional integration.

By working together, African nations can unlock the full potential of their green mineral wealth and pave the way for a prosperous and sustainable future.

Dr. Marit Kitaw, the Interim Director of the African Minerals Development Centre (AMDC), championed a comprehensive approach to the continent’s mineral wealth.

She emphasized on local skills development is pivotal, as it ensures that the expertise required to manage and benefit from these resources is homegrown, reducing reliance on external players and fostering sustainable growth.

By prioritizing training and education, Africa can build a skilled workforce capable of driving innovation and efficiency in the mineral sector.

Her call for value addition highlighted the importance of processing raw materials within the continent rather than exporting them in their unrefined state.

This approach not only boosts local industries but also creates jobs, increases revenue, and empowers local communities.

For instance, refining and manufacturing battery components using Africa’s green minerals, such as lithium and cobalt, can position the continent as a key player in the global transition to renewable energy.

Additionally, Dr. Kitaw underscored the need to harness opportunities in the mineral sector, which involves creating an enabling environment for investment, fostering partnerships, and ensuring inclusive policies that allow all stakeholders, including small-scale miners and local communities, to benefit.

Leveraging these opportunities could unlock vast potential for industrial growth and regional integration.

Together, these strategies form a blueprint for transforming Africa’s rich mineral endowment into a foundation for sustained economic growth and energy transition.

They align with the vision of creating a self-reliant and globally competitive Africa.
Global markets are paying close attention.

With the International Energy Agency forecasting that the demand for essential minerals will soar fourfold by 2040, Africa’s involvement in the energy transition has shifted from being peripheral to absolutely crucial.