The Critical Minerals Imperative
The global energy transition is driving unprecedented demand for critical minerals—lithium, cobalt, copper, rare earths, and others essential for batteries, renewable energy systems, and electric vehicles. Africa, home to vast reserves of many of these minerals, finds itself at the center of an emerging geopolitical competition.
Africa's Resource Endowment
The continent holds significant shares of global reserves:
- DRC controls over 70% of global cobalt production
- South Africa holds 90% of the world's platinum group metals
- Guinea possesses the largest bauxite reserves globally
- Zimbabwe and DRC have emerging lithium deposits
Evolving Partnership Models
Traditional mining concessions are giving way to more complex partnership structures:
- Beneficiation requirements: Governments increasingly mandate local processing
- State participation: National mining companies seeking equity stakes
- Infrastructure linkages: Mining projects bundled with transportation and power infrastructure
- Community development: Enhanced focus on local employment and social investment
Geopolitical Considerations
Critical mineral supply chains have become a strategic priority for major economies. The US, EU, and China are all actively seeking to secure supply through bilateral agreements, direct investment, and development finance. African nations have an opportunity to leverage this competition while avoiding over-dependence on any single partner.
Sustainable Mining
Environmental and social considerations are becoming dealbreakers for many investors and offtakers. Responsible mining certification, carbon footprint reduction, and community engagement are no longer optional—they are essential for market access.
Strategic Implications
For African resource-rich nations, the critical minerals boom presents both opportunity and risk. Success will require sophisticated resource governance, diversified partnerships, and a clear-eyed focus on sustainable, long-term value creation rather than short-term revenue maximization.