Africa’s Critical Minerals Must Build African Prosperity

 Inspired by the recent reflections of United Nations Secretary-General António Guterres on natural-resource governance, conflict and sustainable development.

The growing global demand for lithium, cobalt, nickel, copper, bauxite, graphite and rare-earth elements presents Africa with an extraordinary opportunity. These resources are essential to electric vehicles, renewable-energy technologies, digital infrastructure and the broader global energy transition.

Yet mineral wealth does not automatically create national prosperity.

As United Nations Secretary-General António Guterres recently warned, poorly governed natural resources can intensify geopolitical competition, strengthen criminal networks, weaken institutions and contribute to conflict. His central message was clear: producing countries and affected communities must retain a greater share of the value created from their natural resources. 

The fundamental question is therefore no longer simply:

How much mineral wealth does Africa possess?

It is:

How can this wealth improve the daily lives of African people?

From extraction to transformation

For too long, African countries have exported raw minerals while importing finished products manufactured from those same resources at considerably higher prices.

A country may export bauxite but import aluminium products. It may produce cobalt and copper but import batteries. It may export gold while much of the refining, certification, trading and jewellery manufacturing takes place elsewhere.

This model creates production, but it does not necessarily create transformation.

Real development means building value chains around mineral resources. It means processing, refining and manufacturing locally whenever economically and environmentally viable. It also means developing national expertise in engineering, geology, laboratory services, logistics, environmental management, finance, technology and mineral marketing.

Local transformation should not be understood only as the construction of factories. It must include:

• employment and professional development for citizens;
• procurement opportunities for local businesses;
• infrastructure that also serves surrounding communities;
• transparent management of taxes and royalties;
• environmental restoration;
• meaningful community participation in decisions; and
• investment in education, healthcare, energy and economic diversification.

A mine should not operate as an isolated enclave surrounded by poverty. Its presence should contribute to a stronger local economy that can continue functioning long after mining operations have ended.

Encouraging African leadership

Several African countries are already taking important steps, although implementation, accountability and long-term consistency will remain decisive.

Botswana has demonstrated that a producing country can negotiate for greater national participation in the mineral value chain. Its Diamond Hub coordinates beneficiation and supports downstream activities, including diamond sorting, cutting, polishing and related business development. Botswana’s experience shows the importance of strong public institutions, strategic partnerships and sustained negotiation around national interests. 

Ghana is advancing reforms that place greater emphasis on green and critical minerals, local participation, sustainable mining and value addition. Its policy direction seeks to connect mineral development with industrialisation, local procurement, technology transfer and broader economic opportunities for Ghanaian businesses and workers. 

The Democratic Republic of the Congo and Zambia have also recognised that exporting cobalt and copper alone will not capture the full economic potential of the energy transition. Their cooperation on a regional battery and electric-vehicle value chain represents an important attempt to move from mineral extraction towards processing, battery manufacturing, specialised economic zones and regional industrial integration. 

Guinea, one of the world’s major mineral-producing countries, is similarly pursuing a stronger local-transformation agenda. The country has launched new alumina-refinery projects, placed greater emphasis on processing bauxite locally and announced measures aimed at refining domestically produced gold within Guinea. These initiatives represent an important change in direction: from being primarily a supplier of raw materials towards building national industrial capacity. Their success will ultimately be measured by completed infrastructure, jobs created, local enterprises contracted, skills transferred and tangible improvements in the lives of communities. 

Communities must be partners, not spectators

Local communities bear many of the immediate consequences of mineral development: land acquisition, population displacement, pressure on water resources, environmental degradation, increased living costs and changes to traditional livelihoods.

They must therefore be involved before, during and after extraction.

Community development should not be limited to occasional donations or isolated infrastructure projects. It requires transparent and enforceable agreements, reliable benefit-sharing mechanisms, local employment plans, accessible grievance procedures and credible environmental monitoring.

Communities should know how much revenue is generated, what portion is allocated to local development, who manages those funds and what results have been achieved.

A new social contract for mineral development

Governments have a responsibility to negotiate fair agreements, enforce legislation and manage public revenue transparently. Mining companies must operate responsibly, respect communities, develop local suppliers and invest in skills transfer. Civil society, professional organisations, chambers of mines, researchers and the media must contribute through oversight, dialogue and evidence-based advocacy.

The objective should not be to discourage investment. It should be to create a more balanced partnership in which investors receive reasonable returns while producing countries build industries, strengthen institutions and improve the welfare of their citizens.

As António Guterres stated: “No more exploitation. No more plundering.” 

Africa’s minerals must finance Africa’s transformation.

The conversation we must now have is this:

What percentage of mineral value should remain in producing countries? How can communities participate meaningfully in that value? And what concrete indicators should governments and companies publish to demonstrate that mineral wealth is truly supporting local and national development?