OECD Warns Africa Exports 96% of Critical Minerals With Little Processing as Global Competition Intensifies

Africa continues to lose out on much of the economic value generated by its critical mineral wealth, with 96% of the continent’s critical mineral exports leaving as raw or semi-processed materials, according to a new report by the Organisation for Economic Co-operation and Development (OECD), published on 19 October 2026.

The report, Critical Minerals in Africa: A Regional Overview, highlights a persistent gap between Africa’s significant mineral resources and its limited participation in processing, refining and advanced manufacturing. As global powers compete to secure supplies of minerals essential for electric vehicles, renewable energy, digital technologies, aerospace and defence, the OECD argues that African countries need to capture a greater share of the value generated from their resources.

Although the continent accounts for approximately 10.6% of global critical mineral exports, its position in international supply chains remains largely concentrated in extraction and the early stages of processing. The OECD estimates that 24% of African critical mineral exports are raw materials, while a further 72% are semi-processed products.

China’s Influence Extends Beyond Mine Ownership

The report challenges the perception that China’s influence in African mining can be measured primarily by the number of mines it owns. Chinese companies rank fifth in African mine ownership, behind companies from the United States, Australia, Canada and the United Kingdom.

However, China remains a major force in mineral processing and financing, giving it strategic influence across supply chains even where Chinese companies do not directly own the mines. Australian and Canadian junior and mid-tier companies account for more than half of Africa’s exploration budgets, while Chinese investors often enter projects after discoveries have been made.

This distinction is important as governments and businesses compete to secure reliable supplies of copper, cobalt, lithium, graphite, manganese and nickel. Without stronger domestic processing capacity, African producers risk remaining dependent on overseas facilities to transform their minerals into higher-value products.

Exploration Investment Continues to Decline

Africa’s share of global mineral exploration spending fell from 16% in 2004 to 10.4% in 2024, despite the continent accounting for approximately 20% of new mineral discoveries, according to the OECD.

The report identifies several barriers to unlocking the continent’s mineral potential, including inadequate geological data, infrastructure shortages, limited access to finance, regulatory uncertainty and weaknesses in revenue collection.

These challenges can discourage exploration and make it harder for governments to negotiate favourable agreements. The OECD estimates that many mineral-rich African countries collect only around 40% of their potential mining revenues.

Local Processing Could Transform Africa’s Mining Industry

African governments are increasingly seeking to move beyond raw mineral exports by encouraging domestic refining, processing and manufacturing. However, developing competitive industrial operations requires substantial investment in reliable electricity, transport infrastructure, technical skills and long-term market access.

Recent initiatives illustrate the opportunities and challenges. Guinea is pursuing alumina refining and longer-term aluminium production, while investors and development finance institutions are exploring ways to support mineral processing and related infrastructure across the continent. High energy costs and unreliable electricity remain major obstacles.

The OECD recommends stronger geological information systems, improved mining regulations and fiscal frameworks, better links between mining and local economies, and greater regional cooperation to build integrated value chains.

For Africa, the challenge is no longer simply to increase mineral production. It is to convert resource wealth into industrial capacity, skilled employment, stronger public revenues and greater participation in the global supply chains that will shape future economic growth.