With 30 percent of the world’s known mineral resources, the African continent is not only resource-rich but also central to the global transition towards green and sustainable economies (Mo Ibrahim Foundation, 2022). Yet, despite this immense potential, Africa continues to occupy the lowest rung of the global value chain — primarily as a supplier of raw materials for industrialised economies in the West and East. To change this trajectory, Africa must decisively move from being a natural resource supplier to a continent that adds value to its own resources. This shift is not only an economic imperative but also a political, social, and developmental necessity.
A Legacy of Extraction and Dependency
Africa’s current predicament is deeply rooted in its colonial history. European colonisation restructured African economies to serve the industrialisation of Europe. Railways, ports, and trade routes were designed to export Africa’s raw minerals — gold, copper, diamonds, and later oil — while finished goods flowed in the opposite direction (Mavhunga, 2023). Local industries were stifled, traditional value-addition systems dismantled, and indigenous knowledge systems eroded.
Even after independence, most African nations inherited extractive economies designed for export, not transformation. The postcolonial push for nationalisation and local ownership of mineral wealth often faltered due to limited technical capacity, capital constraints, and continued dependence on multinational corporations (Britwum & Saadi, 2020). Today, only 10 to 15 percent of the value from Africa’s mineral resources is retained on the continent, reflecting a persistent imbalance that perpetuates dependency (African Natural Resources Management and Investment Center, 2022).
A Green Opportunity for Transformation
The global shift toward renewable energy and green technologies has reignited interest in Africa’s critical minerals — cobalt, lithium, graphite, platinum, bauxite, and uranium — all essential for electric vehicles, batteries, and clean energy systems (Cloete et al., 2023). The Democratic Republic of Congo supplies more than 70 percent of the world’s cobalt; South Africa dominates platinum group metals; Guinea holds nearly a quarter of global bauxite reserves; and Namibia is a leading exporter of uranium (Mo Ibrahim Foundation, 2022).
This abundance places Africa at the heart of the green transition. Yet, without a change in governance and policy direction, the continent risks repeating history — exporting raw critical minerals while importing expensive finished products like batteries, solar panels, and electric vehicles. The result would be another cycle of dependency under a new, green guise (Boafo et al., 2024).
Why Value Addition is Essential
1. Economic Independence and Industrialisation
Value addition within Africa can transform the continent’s economies by creating industries, generating employment, and increasing GDP. Processing minerals into intermediate and finished products multiplies their economic value. For instance, refining lithium into battery-grade material or cobalt into cathode components can yield returns many times higher than exporting the raw ore (International Renewable Energy Agency, 2023).
2. Reducing Vulnerability to Global Market Shocks
Africa’s heavy reliance on commodity exports exposes it to volatile global prices. By developing domestic processing and manufacturing capacity, African economies can stabilise revenue flows, diversify exports, and cushion against global downturns (Müller, 2023).
3. Strengthening Geopolitical Leverage
In the current “new scramble” for critical minerals, both China and Western nations are courting African states to secure long-term access to resources. Instead of being passive suppliers, African nations can leverage competition among global powers to secure better trade terms, technology transfers, and infrastructure investments tied to local beneficiation (Cloete et al., 2023; Boafo et al., 2024).
4. Social and Environmental Justice
Local communities often bear the brunt of environmental degradation and social disruption from mining without adequate compensation. Value addition at home ensures that more benefits — jobs, infrastructure, and social investment — remain within affected regions, reducing inequalities and promoting inclusive development (Beuter et al., 2024).
Policy Shifts: Signs of a New Era
Several African countries have begun taking bold steps to reclaim control over their mineral wealth.
- Zimbabwe and Namibia have banned the export of unprocessed lithium to encourage local processing.
- Ghana has introduced measures to refine bauxite, lithium, and iron ore domestically, while building a national gold refinery.
- Botswana successfully renegotiated its diamond deal with De Beers, securing a greater share of profits and establishing a USD 75 million investment fund.
- Post-coup governments in Mali, Niger, and Guinea have increased state ownership in mining projects and mandated local beneficiation (Global Policy Watch, 2024).
While some of these measures face pushback — including claims that they violate World Trade Organization (WTO) rules — they reflect a growing consensus that Africa must no longer be a source of cheap raw materials (Fang, 2024).
Building an African Value Chain
The transformation from supplier to manufacturer requires more than policy bans; it demands coordinated, continent-wide action. The African Union’s Agenda 2063, the Africa Mining Vision (AMV), and the African Natural Resource Governance Architecture (ANRGA) provide frameworks for inclusive and sustainable resource management (Adeniran & Onyekwena, 2020). However, implementation must be accelerated through:
- Regional industrial integration: Initiatives such as the African Continental Free Trade Area (AfCFTA) and the Lobito Corridor (linking Angola, Zambia, and the DRC) should facilitate cross-border processing and logistics to build continental supply chains (Chabala, 2024).
- Investment in human capital and technology transfer: Africa must develop the skills and institutions needed to refine, manufacture, and market its own mineral-based products.
- Joint financing and ownership: Rather than relying on foreign loans, African states can pool resources through institutions like the African Development Bank to finance infrastructure, research, and industrialisation projects (Songwe & Adam, 2023).
- Transparency and accountability: Strengthening governance is critical. The opaque nature of bilateral mining agreements, especially with external powers, must give way to transparency and public scrutiny to ensure that resource revenues benefit citizens (Beuter et al., 2024).
Reclaiming Africa’s Narrative
Africa’s move toward value addition is more than an economic strategy — it is a continuation of the anti-colonial struggle for sovereignty and self-determination. The narrative must shift from Africa as a continent of extraction to Africa as a centre of innovation, production, and sustainable growth.
The precolonial history of African metallurgy — from iron smelting in ancient Zimbabwe to gold refinement in West Africa — reminds us that value addition is not new to the continent; it was disrupted by colonialism (Chirikure, 2018; Green, 2023). Rediscovering and modernising this legacy can empower Africa to chart a new path that balances economic growth, environmental sustainability, and social justice (Mavhunga, 2023).
Conclusion
The world’s transition to green energy presents Africa with an unprecedented opportunity — but only if it seizes control of its mineral destiny. Remaining a supplier of raw materials would perpetuate dependency and underdevelopment; embracing value addition would unlock prosperity and resilience.
By investing in processing industries, fostering regional cooperation, and demanding fair partnerships with global powers, Africa can transform its resource wealth into a foundation for inclusive and sustainable development.
The message is clear: Africa must not export its future. It must refine, manufacture, and build it at home.
References
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