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Addis Ababa, March 8, 2025 (ENA) –Africa, rich in critical energy minerals like lithium, cobalt, and rare earth elements, offers transformative investment opportunities as the world shifts towards a clean energy transition.
The continent holds about 30 percent of the world’s critical mineral reserves including 55 percent of global cobalt and 47.65 percent of manganese. The continent is also rich in natural graphite, copper, nickel, lithium, and iron ore.
These minerals are essential for the production of batteries, fuel cells and other components used in electric vehicles (EVs), renewable energy technologies, medical supplies, and high-performance metals and engines, including those used for defense and military applications. Africa’s vast mineral wealth places Africa as a competitive hub for green technology advancement.
According to the 2024 Global Critical Minerals Market Review by the International Energy Agency (IEA), investment in critical mineral mining grew by 10 percent in 2023, with lithium investment rising sharply by 60 percent despite weak prices. This growth shows the strategic approach many mineral rich countries are adopting for development.
While the African Union is yet to announce a formal strategy on critical minerals, the African Minerals Development Centre (ADMC) is developing an African Green Minerals Strategy which aims to guide African countries on how to exploit their raw materials. However, Africa hasn’t reached its full potential as it is estimated that African countries generate about 40 percent of the revenue it could from these resources.
To reach its full potential and meet international quality standards, Africa needs to focus on expanding investment opportunities. Attracting foreign investment for these minerals begins with strengthening internal efforts – modernizing mining operations by upgrading equipment, and prioritizing high-value production such as refining battery-grade lithium instead of exporting raw materials. For economic growth, on-site mineral processing is crucial as it increases export revenues and creates jobs across the supply chain.
Investing in STEM education at universities and research institutions is equally important; it fosters innovation, supports knowledge transfer and encourages industry partnerships with mining companies. Ensuring global competitiveness also requires strengthening infrastructure like roads, rail, and ports which evidently boosts supply chain efficiency and elevates Africa’s attractiveness to global investors.
Additionally, regional trade and economic integration through agreements such as the African Continental Free Trade Area (AfCFTA) which represents a market of 1.4 billion people and a GDP of over 3.4 trillion USD can facilitate intra-African trade in minerals and technology, reducing dependence on external markets and fostering industrial growth. Further, by investing in modern logistics, streamlined regulations, and efficient cross-border trade policies, African nations have a great chance at maximizing the value of their mineral resources.
In order to tap the potential of mining in Africa governments must give a great deal of attention to the sector in terms of policies developing national strategies tailored to their distinctive mineral resources and industrial capabilities.
Governments must implement policies that promote investment in mineral processing while these fair labor practices and environmental protection are in place. Even engaging the African diaspora, many who have expertise in engineering, technology, and business, could help facilitate knowledge transfer, industry partnerships, and economic collaboration.
Africa stands at a critical time with its vast reserves of minerals with the continent having great potential to drive economic growth, create jobs, and secure future wealth for its countries.
However, realizing this potential requires more than just resource extraction – it demands strategic investment, regional cooperation, and a commitment to ethical and sustainable mining practices. The path forward is clear: with the right policies, investments, and international partnerships, Africa can not only meet the world’s growing demand for critical minerals but also shape a future that is prosperous for the continent.
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