- Africa has more leverage in the global race for critical minerals.
- Experts say stronger policies can help retain more mining value.
- Infrastructure and good governance remain key to long-term growth.
AFRICA is once again at the centre of a global race for critical minerals as governments and manufacturers compete to secure supplies needed for electric vehicles, renewable energy, artificial intelligence, semiconductors and defence technologies.
The continent holds about 30% of the world’s critical mineral reserves, according to the United Nations Economic Commission for Africa (UNECA). It is rich in cobalt, lithium, graphite, copper, manganese and platinum group metals that are essential to the global energy transition.
The renewed interest presents Africa with a rare opportunity. But it also raises an old question: can the continent build industries around its mineral wealth, or will it continue exporting raw materials while others capture most of the value?
Joshua Charles, founder and chief executive of Washington-based investment research and strategic advisory firm Frontier Dominion, said Africa has a rare opportunity to capture more value from its mineral wealth if governments strengthen policy and institutions.
“Critical minerals are no longer simply commodities,” Charles told ZiMining.
“They sit at the intersection of the energy transition, electrification, advanced manufacturing, artificial intelligence and national security. That fundamentally changes how governments value them.”
His view reflects a wider shift in global industrial policy. Countries are no longer competing only for access to mineral deposits but also for control of supply chains that stretch from mining and refining to battery production and manufacturing.
China remains the dominant force in processing many critical minerals after decades of investment in refining capacity. At the same time, the United States, Europe and other partners are investing billions of dollars to diversify supply chains and reduce dependence on a single country.
That competition gives African governments more negotiating power than they had during previous commodity booms.
“The conversation is no longer simply about attracting foreign capital,” Charles added. “It is about negotiating investment that supports infrastructure, develops local suppliers, transfers skills and creates industries beyond extraction.”
Across the continent, governments are responding by promoting local processing and value addition instead of exporting raw minerals. The African Union’s Africa Mining Vision and the recently adopted African Green Minerals Strategy both encourage countries to develop industries that create jobs and retain more value at home.
Yet turning those ambitions into profitable businesses will not be easy.
Processing minerals requires reliable electricity, efficient transport networks, skilled workers and stable regulations. Without those foundations, refineries and manufacturing plants may struggle to compete internationally,
According to Charles, “The objective should not be processing for its own sake,” He added, “The objective is building commercially sustainable stages of the value chain that increase domestic value addition and expand employment.”
Charles believes value addition should go beyond smelters and refineries. Engineering services, laboratory testing, equipment maintenance, logistics and chemical processing can also create skilled jobs while supporting mining operations.
Infrastructure is one of Africa’s biggest constraints.
Many mineral-rich countries continue to face power shortages, high transport costs and congested ports. The African Development Bank says infrastructure investment is essential if the continent is to industrialise and benefit more from its natural resources.
“Infrastructure is the difference between a deposit that exists geologically and one that can operate competitively,” Charles argued.
Shared railways, power transmission lines, ports and digital infrastructure can benefit mining as well as manufacturing, agriculture and regional trade, he added.
Zimbabwe illustrates both the opportunity and the challenge.
The country has significant lithium, platinum group metals, gold and chrome resources and has attracted growing investor interest. However, growing domestic processing will depend on continued investment in electricity, transport and industrial capacity.
Technology is also reshaping mining.
Artificial intelligence, automation, remote sensing and advanced geological modelling are helping companies identify deposits faster, improve productivity and reduce operating costs. Those technologies are increasing demand for workers with specialised technical skills.
“Technology can improve productivity, but it also raises the premium on people who can interpret data, validate results and make commercial decisions,” Charles warned.
He said governments, universities and industry need to work more closely to develop expertise in processing metallurgy, geospatial analytics, automation, environmental management and commercial auditing.
Governance, however, may prove the biggest test.
Competition among investors gives African governments more financing options, but it also makes mining agreements more complex. Experts have long argued that countries with strong institutions are more likely to convert natural resources into long-term economic growth than those with weak governance.
Charles said governments should prioritise transparent licensing systems, competitive tendering, stronger auditing and greater disclosure of beneficial ownership.
“The strongest protection is not a single contract,” he said. “It is having institutions capable of enforcing transparent rules consistently.”
International organisations have also warned that weak governance can reduce the benefits of mining through corruption, environmental damage and poor revenue management. They argue that stronger regulation and transparency are essential if mineral wealth is to support broader economic development.
Some countries have shown what is possible.
Botswana used long-term partnerships and prudent fiscal management to turn its diamond industry into a major source of national development. Chile has also used copper revenues to support public investment while building one of the world’s largest mining industries.
