Africa Urged To Protect Critical Minerals And Prioritise Local Value Addition

Africa’s vast reserves of critical minerals could become a major driver of economic transformation, but governments must avoid rushing to sell or pledge these resources to address short-term financial pressures.

That warning emerged at the sixth African Conference on Debt and Development (AfCoDD VI), where civil society organisations raised concerns that resource-backed borrowing could leave African countries sacrificing future mineral revenues for immediate access to cash.

The continent holds significant deposits of copper, cobalt, lithium, graphite and manganese — minerals that are increasingly essential to electric vehicles, renewable energy systems, batteries and other technologies supporting the global energy transition. Rather than exporting these resources largely in raw form, African countries have an opportunity to develop processing, refining and manufacturing industries around them.

Greater local value addition could generate skilled employment, increase government revenues, strengthen domestic businesses and create industrial capabilities that extend beyond mining. It could also provide additional resources for investment in infrastructure, education, healthcare and other public services.

However, civil society groups warn that using future mineral production or revenues as collateral for loans could reduce governments’ financial flexibility. Falling commodity prices, lower-than-expected production or excessive debt obligations could leave countries struggling to meet repayments while having fewer resources available for development.

Greenpeace Africa Global Political Lead Koaile Monaheng said Africa’s minerals should support green industrialisation, decent employment, stronger public services and improved living standards. He cautioned that resource-backed borrowing could instead leave countries facing increased debt, inequality and environmental pressures.

The groups are calling for greater transparency around resource-backed loan agreements and mining contracts, including public disclosure and independent scrutiny. They also support stronger mining taxation, measures to curb illicit financial flows and greater parliamentary oversight of major resource deals.

For Africa, the challenge is therefore not whether to develop its critical mineral resources, but how to ensure those resources generate lasting economic value. Expanding regional processing and manufacturing, while protecting mining communities and the environment, could allow the continent to use its mineral wealth as a foundation for industrial development rather than simply another source of raw material exports.