Africa must avoid oil-era mistakes in critical minerals – Experts
Africa must strengthen institutions and regional bargaining power to avoid repeating the oil-era mistakes in developing its critical mineral resources, experts say. The post Africa must avoid oil-era mistakes in critical minerals – Experts appeared first on Ghana Business News .
Experts warn that Africa must avoid repeating the economic mistakes experienced during the oil era when developing its critical mineral resources. Benjamin Boakye, the Executive Director of the Africa Centre for Energy Policy, emphasized that Africa should strengthen institutions and boost its bargaining power to turn critical minerals into opportunities for industrialization, job creation, and development.
Africa should not simply export raw materials like it did with oil but instead invest in value addition and local industries, he stated. Boakye highlighted that previous oil revenues were misused, weakening institutions and leading to environmental destruction and social disruption. Africa should focus on using its critical minerals to foster industrialization, generate employment, and build local industries instead of merely exporting unprocessed raw materials.
Nafi Quarshie, the Africa Director of the Natural Resource Governance Institute, echoed similar concerns, warning that the global energy transition could replicate Africa's traditional extractive model under a "green" label. To avoid this, she called for stronger institutions, transparent decision-making, responsible revenue management, and meaningful community participation.
She also urged African countries to promote regional cooperation and strengthen bargaining power to capture greater value from their mineral resources. Magdalena Wüst, the Deputy Head of Cooperation at the Swiss Embassy, echoed these sentiments, stressing that Africa must move beyond being a mere resource supplier and capture more value from its natural wealth.
She emphasized the need for Africa to transition from raw mineral exports to processing, regional value chains, and industrialization to benefit from the rising demand for critical minerals. The experts urged policymakers, researchers, journalists, and industry leaders to scrutinize mining agreements and major investments, focusing on who benefits from the extracted resources, who bears the risks, and ensuring that economic benefits remain in Africa.
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