Africa holds key resources in the global minerals race
- Africa holds around 30% of the world's known mineral reserves and is increasingly significant in resource competition.
- Countries like the DRC and South Africa have abundant critical minerals yet struggle with economic development and raw material dependency.
- Transitioning to ethically grounded, sustainable economic models is essential for truly harnessing Africa's mineral wealth.
Africa's vast mineral wealth positions the continent as a central player in global resource competition, especially regarding critical minerals that are essential for the green transition and technological advancements. Countries such as the Democratic Republic of the Congo (DRC) possess significant reserves, including an estimated 70% of global cobalt. However, the economic development of these African nations remains critically limited, with a heavy reliance on exporting raw materials. This disparity leads to suboptimal revenue capture from natural resources, reflecting systemic failures in local economies to develop infrastructure for value-added processing. For instance, raw bauxite ore sells for approximately $92 per ton, while refined aluminum can reach around $2,438 per ton, highlighting the potential economic benefits of strategic processing. This inequity underscores the need for a shift away from exploitative economic models that have long characterized external engagements with African resources. The situation is compounded by global geopolitical dynamics, particularly with China dominating the supply chains of critical minerals. The U.S. faces a significant strategic threat due to its dependency on imports for numerous critical minerals, thereby requiring actions like the 2022 CHIPS and Science Act to enhance domestic manufacturing capabilities. Creating mutually beneficial partnerships between resource-rich African countries and global industries is essential to address these vulnerabilities. An approach grounded in economically viable, environmentally sustainable, and ethically responsible frameworks could empower African economies and ensure equitable resource management for the future.