ADDIS ABABA, Ethiopia (BG) – Africa’s wealth of critical minerals, including cobalt, lithium, and nickel, offers an unprecedented opportunity to drive intra-continental trade and sustainable development, according to a statement on Monday by the United Nations Economic Commission for Africa (ECA).
During an Expert Group Meeting (EGM) on Africa’s Critical Minerals in the Context of Trade Policy, hosted by the African Trade Policy Centre (ATPC) in Addis Ababa on December 16–17, experts emphasized that while Africa has robust strategies and policies to harness its mineral wealth, action is needed to realize the full potential of these resources.
ECA Deputy Executive Secretary Antonio Pedro called for Africa to capitalize on its political and economic integration to benefit from the global green energy transition.
“There is no reason why we should have a repeat of the scramble for Africa, especially at a time when greater political and economic integration has also taken place at the regional and continental levels,” said Pedro.
He highlighted continent-wide policies like the African Mining Vision (AMV), the African Commodity Strategy, and the African Green Minerals Strategy as tools to ensure equitable development of Africa’s resources.
Critical Minerals and the Green Transition
Research by the ECA reveals that global demand for critical minerals will surge as economies shift from fossil fuels to clean energy to meet net-zero emissions targets by 2050.
According to the statement, the transition is expected to require 3 billion tons of minerals and metals for renewable energy technologies like solar and wind.
Africa is home to 30% of the world’s critical mineral reserves, 55% of global cobalt reserves and nearly half of the world’s manganese. The Democratic Republic of Congo (DRC) alone supplies about 70% of the global cobalt market, a mineral essential for electric vehicle batteries.
Critical minerals, sought after for just energy transition, could power Africa’s development and sustainable future, noted the United Nations Conference on Trade and Development (UNCTAD), which also identified these resources as potential revenue generators for governments to combat poverty and finance development.
Industrialization and Revenue Potential
Pedro said that value addition to critical minerals could transform Africa into an industrialization hub.
This would boost sectors like e-mobility, create jobs, and position Africa as a competitive leader in green industrialization.
However, Africa currently generates only 40% of the revenue it could potentially collect from its mineral resources, underscoring the need for policy reforms and capacity building.
Leveraging AfCFTA for Regional Value Chains
The EGM emphasized the importance of leveraging Africa’s trade and integration programs, such as the African Continental Free Trade Area (AfCFTA), to build regional value chains.
The AfCFTA represents a market of 1.3 billion people and a combined GDP of over $3.4 trillion, but intra-African trade remains low, accounting for just 15% of total trade.
According to ECA, Africa’s commitment to trade-led economic integration should be leveraged to support the development of minerals-based regional and continental value chains and economic diversification.
Recommendations for Action
The meeting recommended conducting a baseline study to assess African minerals’ current use and trade and identify lessons from past commodity cycles.
It called for further research to develop actionable policy recommendations ensuring Africa retains maximum mineral wealth value.
With coordinated action and strengthened trade policies, Africa has the potential to harness its critical minerals not only for economic growth but also for sustainable development, paving the way for a more integrated and prosperous continent.
