[ACCI-CAVIE] As global demand for critical minerals skyrockets to meet the needs of the energy transition, strategic intelligence emerges as a key tool to turn opportunities into sustainable success. According to the report “Shaping The Future of Minerals” by the Future Minerals Forum, an estimated $5.4 trillion investment will be needed by 2035 to meet the growing demand for cobalt, lithium, nickel, and rare earths—resources essential for low-carbon technologies like electric vehicle batteries and renewable energy systems.
Africa and the “Super Region”: A Strategic Powerhouse
Africa, alongside an extended area including Central and West Asia, constitutes a “Super Region” pivotal to global energy dynamics. This region holds 59% of global cobalt reserves, 62% of manganese, and 67% of bauxite, positioning it as a cornerstone for the energy transition.
Yet, Africa remains underutilized. Most minerals leave the continent in raw form, with their value-added processing conducted elsewhere. For instance, 80% of global cobalt refining is performed outside Africa, limiting local economic growth and job creation.
With its vast resources and geographic proximity to major markets in Europe and Asia, Africa has the potential to reshape its role in the global critical minerals supply chain. A strategic approach could unlock this potential and establish Africa as a central player.
Turning Resources into Economic Strength
To capitalize on its mineral wealth, Africa needs to focus on:
- Local exploration and processing: Inspired by Indonesia’s success with nickel, Africa can develop local industries to create jobs and significant revenues.
- Modern infrastructure: Investments in roads, ports, and processing facilities are vital to support growth.
- Strategic policies: Reforming mining codes, renegotiating contracts, and incentivizing local processing can attract investment while safeguarding local benefits.
The report highlights that localized processing could generate thousands of jobs in green technology and chemical sectors, while revenues could fund essential infrastructure, including schools and hospitals, driving sustainable development.
Strategic Intelligence: Building Sovereignty
To compete with global players like China, Africa must adopt a comprehensive strategic approach. This involves:
- Mapping opportunities and risks in the critical minerals sector.
- Establishing investment-friendly regulatory frameworks to attract capital while prioritizing local interests.
- Developing local expertise to manage all stages of the value chain effectively.
By leveraging strategic intelligence, Africa can overcome challenges such as inadequate infrastructure and a less competitive business environment, transforming its potential into economic power.
A Vision for the Future
The Future Minerals Forum report calls for immediate action to ensure Africa’s mineral wealth serves the continent’s development goals. Through a well-coordinated strategic vision, Africa can not only meet the global energy transition demands but also position itself as a model for sustainable economic growth.
Africa’s mineral wealth is not merely an opportunity; it is a strategic lever to shape its future and assert its role in the emerging global economic order.
The editorial staff