OPINION | SADC’s critical minerals can power Africa’s transformation

The SADC (Southern African Development Community) is set to play a pivotal role in Africa's transformation as the world pivots towards clean energy. As demand for critical energy transition minerals skyrockets, Africa boasts a substantial share of these resources, particularly in cobalt, copper, graphite, lithium, manganese, nickel, platinum group metals, and rare earth elements.

Africa holds about 30% of the global reserves of these minerals, accounting for 77% of cobalt production, 21% of natural graphite, 1% of lithium, 65% of manganese, 5.6% of nickel, and 83% of platinum group metals. The SADC region sits at the heart of this wealth, with countries like the Democratic Republic of the Congo, Zimbabwe, South Africa, and Zambia leading in specific mineral production.

However, merely possessing these resources is not a guarantee for profound transformation. The SADC region serves as a testing ground for Africa's strategic resolve to reshape its future through deliberate choices that avoid dependency and foster transformation. Currently, minerals contribute around 10% of SADC's GDP, 25% of exports, and 20% of government revenues.

Yet, the sector only accounts for 7% of direct employment, highlighting the need to transition into mineral-based industrialisation and value addition, which can generate more jobs and economic opportunities. This shift presents opportunities for sustainable job creation for women and young people, stimulating local enterprise, generating optimal public revenues, and enhancing Africa's standing in the global green economy.

Despite these opportunities, several challenges need to be addressed. These include policy disconnects, skills gaps, and the need for clean, reliable, and affordable energy to power mineral processing. Recommendations for the SADC region involve a fundamental shift in strategy across exploration, mining, value addition, and marketing of critical minerals.

Key priorities include investing in geological knowledge to strengthen negotiating power in investments, developing a minerals compact aligned with continental frameworks to harmonise policies and promote local value addition, and leveraging renewable energy resources to support mineral processing in a low-carbon manner. By seizing these opportunities and overcoming challenges, the SADC region can move beyond being a mere source of wealth for other economies and drive value addition, regional integration, and inclusive development.