Africa: Africa's Mineral Strength Is Wasted If Countries Don't Work Together - New Report

Green technologies demand minerals like cobalt, lithium, copper, manganese, graphite and rare earths. The International Energy Agency estimates electric cars require six times more minerals than petrol cars, while wind power plants need nine times more. Africa possesses several of these needed minerals, which could benefit from the growing demand for green technologies.

However, simply having these minerals does not automatically result in economic prosperity. Developing nations with mineral deposits often struggle to reap economic benefits from mining. Our latest study, commissioned by the World Bank, examined whether African countries are processing and refining minerals or producing components for green technologies.

Our analysis revealed that most African countries export raw or lightly processed minerals, rather than higher-value materials. Consequently, Africa's mineral wealth has not led to significant industrial activity, well-paid jobs, higher incomes or improved living standards. Despite deposits of 41 minerals used in various sectors, most African countries export these minerals in raw form, losing out on value capture.

African countries could enhance their mineral market position by coordinating trade policies, rather than acting independently. Private companies hold mining licenses, but permission to extract minerals may not include unrestricted export rights. Governments may have some scope to coordinate trade rules, although further study is needed to determine how this would work alongside companies' existing rights.

Currently, Asia, particularly China, is the leading importer of 16 minerals from Africa, absorbing over 40% of Africa's annual mineral ore exports.