Securing Africa’s Position in the Global Minerals Value Chain

Consequently, demand for critical minerals, including lithium, cobalt, copper, manganese, and rare earth elements (REE), is high and rising. These minerals are essential for advanced manufacturing, particularly for electric vehicle (EV) batteries, solar panels, wind turbines, and the digital technologies that power the global economy.

Africa, home to nearly a third of the world’s critical mineral reserves, is at the heart of this demand. Yet the continent’s challenge lies not in abundance but in how to capture more value within its borders.

“Africa’s mining industry is entering a new era, one defined by the continent’s growing strategic leverage in global supply chains. Critical minerals have become central to national security, industrial policy and geopolitical alignment, and African governments are recalibrating their approach accordingly. State objectives are clear and more assertive than before: to capture more economic value at home and to strengthen control over the production and trade of minerals,” notes Chris Green, Director, A&K Tanzania (ALN firm in Tanzania).

Despite accounting for less than 1% of the global value of clean energy technologies and components manufacturing, Africa is well-positioned to become one of the world’s trusted partners. Still, the continent needs to seize the opportunity quickly.

We explore how Africa can secure its position in the global minerals value chain by strengthening its industrial base, governance, and strategic partnerships, while balancing sustainability with competitiveness in a rapidly evolving global landscape.

A Global Race Redefined
The reshaping of global supply chains has put Africa in the spotlight. Western economies, led by the United States and the European Union, are seeking to diversify away from China’s dominance in the processing of critical minerals.

A recent report by AidData notes that China is home to 35% of global REE mineral reserves, accounts for 70% of global extraction, and 87% of global processing of REE minerals. The world depends on China’s processed minerals for a wide range of industries at the core of the global economy and technology, such as magnets used in cars, data centres, defence technologies, industrial motors, and other applications in energy and AI.

However, the lessons from the COVID-19 pandemic and the shifting geopolitical landscape call for greater supply chain resilience and a more diverse set of trusted suppliers.

Initiatives such as the Minerals Security Partnership (MSP), which includes the U.S., the EU, Japan, and South Korea, aim to develop secure, responsible mineral supply chains.

At the same time, China and the Gulf Cooperation Council (GCC) nations continue to strengthen their presence across Africa through long-term mining investments and infrastructure financing. The African Development Bank (AfDB) estimates that the global market for critical minerals will exceed USD 400 billion by 2030, underscoring the scale of the opportunity.

Africa’s Resource Power
From the cobalt fields of the Democratic Republic of Congo (DRC) to the lithium belts of Zimbabwe and Namibia, Africa’s mineral wealth spans almost every corner of the continent.

Key Statistical Information of Critical Minerals and Share of Global Reserves in Africa

Source: UNCTAD, Critical Minerals and Routes to Diversification in Africa, 2023; USGS, Mineral Commodity Summaries, 2023; UNEP, Environmental aspects of critical minerals in Africa in the clean energy transition, 2023.

But the real story lies in policy evolution. Countries are no longer content to export ores alone. Zambia and the DRC recently launched a joint battery council to develop an integrated value chain for EV manufacturing. Zimbabwe has restricted the export of raw lithium to encourage local beneficiation, while Namibia has introduced new policies to attract responsible mining investment aligned with its green hydrogen ambitions.

Building Value: From Mine to Market
The path to securing Africa’s position in the global minerals value chain runs through beneficiation, industrialisation, and regional collaboration.

The African Union’s Africa Mining Vision (AMV) provides the strategic framework, calling for resource-based industrialisation that integrates mining with manufacturing, energy, and infrastructure development. Similarly, the United Nations Economic Commission for Africa is supporting countries in developing regional mineral corridors, such as the Lobito Corridor, to improve logistics and export competitiveness.

The Africa Battery Initiative, led by the AfDB, also aims to create an ecosystem for local battery manufacturing and recycling, linking resource-rich nations with industrial hubs.

“Collaboration will define Africa’s position in the critical minerals’ conversation. Shared value chains, cross-border infrastructure, and harmonised policies could unlock the continent’s full potential. Yet this will require overcoming deep-rooted challenges, including fragmented regulation, limited financing, and uneven capacity, that have constrained Africa’s ability to act collectively,” observes Tonye Krukrubo, Partner, Aluko & Oyebode (ALN firm in Nigeria)

Governance, ESG, and the Trust Factor
Africa’s mineral advantage should be matched by good governance and responsible production. The global market increasingly demands ethically sourced, traceable, and environmentally sustainable minerals.

Frameworks such as the Extractive Industries Transparency Initiative and the OECD Due Diligence Guidance for Responsible Supply Chains are establishing global standards for accountability. Investors, particularly development finance institutions and sovereign wealth funds, now prioritise ESG-compliant operations when financing mining projects.

“Investors and businesses increasingly want minerals that are responsibly sourced, ethically mined, and environmentally sound. It’s no longer just about extraction; it’s about accountability, transparency, and ensuring that the benefits of Africa’s resources are shared equitably and sustainably,” says Salimatou Diallo, Founding Partner, ADNA (ALN firm in Algeria, Cote d’Ivoire, Guinea and Morocco)

Countries such as Botswana and Ghana have shown that transparency and stable regulation can coexist with profitability. Strengthening governance and public trust will be key to attracting long-term capital and ensuring that mineral wealth translates into national prosperity.

Investment, Partnerships, and the Path Forward
Mining is energy- and infrastructure-intensive, making reliable power and transport essential. The United States’ Lobito Corridor initiative, which aims to connect Angola, the DRC, and Zambia, exemplifies this shift towards integrated investment. The corridor requires around USD 2.4 billion in additional financing to reach completion.

Meanwhile, sovereign wealth funds from the UAE and Saudi Arabia are investing in logistics, battery minerals, and industrial zones, reflecting the rise of South–South investment flows. The EU’s Global Gateway and China’s Belt and Road Initiative (BRI) are also expanding networks across Africa, targeting strategic minerals and infrastructure.

“Development finance institutions such as the  IFC and the AFC are catalysing co-investments in midstream facilities that enable Africa to capture greater value at the processing, refining, and transport stages before export. They are also playing a pivotal role in supporting technology companies by providing risk-mitigating financing that encourages them to establish manufacturing operations across the continent,” emphasises Emmanuel Manda, Co-Managing Partner, Musa Dudhia & Co. (ALN firm in Zambia).

Additionally, based on Brookings’ calculations, the projected number of additional formal jobs in copper, cobalt, nickel, and lithium mines may be around 286,000 by 2040. Boston Consulting Group further estimates the broader impacts, finding that a USD 1 billion investment in mining and processing can create 3,000-6,000 direct jobs, contribute USD 210 – 280 million to GDP in steady state, increase annual incremental government revenue by USD 70 – 100 million in steady state, and lead to USD 100 million spent on regional infrastructure.

For policymakers, the focus must be on maximising these secondary impacts through skills development, infrastructure investment, and equitable revenue-sharing frameworks.

This combination of public and private capital creates a rare alignment of interests, supports industrial growth in Africa, ensures supply security for global partners, and promotes sustainability for markets worldwide.

Securing Africa’s Future
Securing Africa’s position in the global minerals value chain requires strategy, structure, and sustainability. The continent’s vast resources, estimated by the United Nations and S&P Global Market Intelligence to exceed USD 1 trillion, offer a generational opportunity to build industries, attract investment, and empower communities.

The stakes are high, but the opportunity is even greater. With the right governance, technology transfer, and regional cooperation, Africa can move from the margins of the global critical minerals trade to its core, shaping its economic landscape and the future of global sustainability.

Africa’s minerals may fuel the world’s green transition, but how the continent manages, processes, and trades them will determine its true prosperity.

Sources

Africa Centre for Strategic Studies  | Africa Development Bank Group  | Boston Consulting Group  |  Brookings | ODI Global | United Nations Economic Commission on Africa