Africa's imperative: seizing the opportunity of critical minerals

AFRICA finds itself at a pivotal moment, facing a unique opportunity in the realm of critical minerals. These valuable resources, vital for economic growth and national security, must not be squandered. As Western powers strive to break China's dominance in mining and processing these minerals, African nations have a chance to become major players in the global critical mineral value chain. However, it is crucial for Africa to act decisively and wisely to fully capitalise on this opportunity.

Publisher

Jon Offei-Ansah

Editor Desmond Davies

Contributing Editors

Stephen Williams

Prof. Toyin Falola

Tikum Mbah Azonga

Contributors

Justice Lee Adoboe

Chief Chuks Iloegbunam

Joseph Kayira

Zachary Ochieng

PUBLISHER’S NOTE

Critical minerals are indispensable for various industries and technologies, with no viable substitutes and susceptibility to supply chain disruptions. Acknowledging their significance, the international community has identified 50 minerals as critical, making their production a matter of strategic importance. Africa possesses abundant reserves of such minerals, including graphite, lithium, and cobalt, which are essential components of clean energy technologies.

Africa bucks global economic trend

Jon Offei-Ansah Publisher

Desmond Davies Editor

In the past, Africa has often been exploited for its natural resources, resulting in limited local benefits. This time, Africa must avoid repeating the mistakes of the past. Rather than being mere providers of raw materials, African nations should aim to participate in the value-added stages of the critical mineral supply chain. By engaging in beneficiation processes such as refining and manufacturing, Africa can maximise the economic benefits derived from its resources.

In 2018, six of the 10 fastest-growing economies in the world were in Africa, according to the World Bank, with Ghana leading the pack. With GDP growth for the continent projected to accelerate to four per cent in 2019 and 4.1 per cent in 2020, Africa’s economic growth story continues apace. Meanwhile, the World Bank’s 2019 Doing Business Index reveals that five of the 10 most-improved countries are in Africa, and one-third of all reforms recorded globally were in sub-Saharan Africa.

Deputy Editor

Angela Cobbinah

Contributing Editor

Stephen Williams

Director, Special Projects

Olu Ojewale

Oladipo Okubanjo

Corinne Soar

Kennedy Olilo

Gorata Chepete

Designer

Simon Blemadzie

Country Representatives

What makes the story more impressive and heartening is that the growth – projected to be broad-based – is being achieved in a challenging global environment, bucking the trend.

Africa faces numerous challenges in harnessing the potential of its critical minerals. Historical grievances and geopolitical dynamics may hinder progress, requiring leaders to set aside animosities and prioritise their nations' long-term interests. Swift reforms are essential to address issues like corruption, infrastructure deficiencies, and the shortage of skilled labour. By confronting these hurdles headon, Africa can create an enabling environment for critical mineral development.

In the Cover Story of this edition, Dr. Hippolyte Fofack, Chief Economist at the African Export-Import Bank (Afreximbank), analyses the factors underpinning this performance. Two factors, in my opinion, stand out in Dr. Hippolyte’s analysis: trade between Africa and China and the intra-African cross-border investment and infrastructure development.

Michael Orji

Contributors

Justice Lee Adoboe

Chuks Iloegbunam

Joseph Kayira

Zachary Ochieng

Olu Ojewale

South Africa

Edward Walter Byerley

Top Dog Media, 5 Ascot Knights

47 Grand National Boulevard Royal Ascot, Milnerton 7441, South Africa

Tel: +27 (0) 21 555 0096

Cell: +27 (0) 81 331 4887

Oladipo Okubanjo

Much has been said and written about China’s ever-deepening economic foray into Africa, especially by Western analysts and commentators who have been sounding alarm bells about re-colonisation of Africa, this time by the Chinese. But empirical evidence paints a different picture.

Despite the decelerating global growth environment, trade between Africa and China increased by 14.5 per cent in the first three quarters of 2018, surpassing the growth rate of world trade (11.6 per cent), reflecting the deepening economic dependency between the two major trading partners.

Regional cooperation is key to Africa's success in the critical minerals sector. By joining forces, African countries can pool their resources, share expertise, and mitigate risks. Collaboration facilitates the establishment of critical mineral processing and manufacturing hubs, where economies of scale and shared infrastructure can drive efficiency and competitiveness. Initiatives like the Africa Continental Free Trade Agreement provide platforms for leaders to engage in discussions and forge partnerships for mutual benefit.

Empirical evidence shows that China’s domestic investment has become highly linked with economic expansion in Africa. A one percentage point increase in China’s domestic investment growth is associated with an average of 0.6 percentage point increase in overall African exports. And, the expected economic development and trade impact of expanding Chinese investment on resource-rich African countries, especially oil-exporting countries, is even more important.

Corinne Soar

Gloria Ansah Designer

Country Representatives

South Africa

Edward Walter Byerley

Top Dog Media, 5 Ascot Knights

Africa must adopt a visionary approach to make the most of its critical minerals opportunity. Learning from the experiences of other nations, particularly those that have successfully developed their critical minerals sector, can provide valuable insights. Investing in research and development, promoting innovation, and creating an enabling business environment are crucial elements of this visionary approach. By doing so, Africa can attract investments, foster entrepreneurship, and nurture a skilled workforce.

The resilience of African economies can also be attributed to growing intra-African cross-border investment and infrastructure development. A combination of the two factors is accelerating the process of structural transformation in a continent where industrial output and services account for a growing share of GDP. African corporations and industrialists which are expanding their industrial footprint across Africa and globally are leading the diversification from agriculture into higher value goods in manufacturing and service sectors. These industrial champions are carrying out transcontinental operations, with investment holdings around the globe, with a strong presence in Europe and Pacific Asia, together account for more than 75 per cent of their combined activities outside Africa.

Email: ed@topdog-media.net

Ghana

Nana Asiama Bekoe

Kingdom Concept Co.

Tel: +233 243 393 943 / +233 303 967 470 kingsconceptsltd@gmail.com

47 Grand National Boulevard Royal Ascot, Milnerton 7441, South Africa

Tel: +27 (0) 21 555 0096

Cell: +27 (0) 81 331 4887 Email: ed@topdog-media.net

Ghana

Nana Asiama Bekoe

Kingdom Concept Co.

Nigeria

Nnenna Ogbu

#4 Babatunde Oduse crescent

Isheri Olowora - Isheri Berger, Lagos

Tel: +233 243 393 943 / +233 303 967 470 kingsconceptsltd@gmail.com

Tel: +234 803 670 4879 getnnenna.ogbu@gmail.com

Kenya

A survey of 30 leading emerging African corporations with global footprints and combined revenue of more than $118 billion shows that they are active in several industries, including manufacturing (e.g., Dangote Industries), basic materials, telecommunications (e.g., Econet, Safaricom), finance (e.g., Ecobank) and oil and gas. In addition to mitigating risks highly correlated with African economies, these emerging African global corporations are accelerating the diversification of sources of growth and reducing the exposure of countries to adverse commodity terms of trade.

This makes me very bullish about Africa!

Africa stands on the brink of a transformative opportunity with its wealth of critical minerals. The continent must seize this moment and ensure that its resources are utilised in a sustainable and inclusive manner. By embracing beneficiation, addressing challenges, fostering collaboration, and adopting a visionary approach, Africa can become a major global player in the critical mineral value chain. The responsible and strategic management of critical minerals will contribute to Africa's economic growth, enhance national security, and position the continent as a key player in shaping the future of global industries and technologies.

Nigeria

Taiwo Adedoyin

MV Noble, Press House, 3rd Floor 27 Acme Road, Ogba, Ikeja, Lagos

Tel: +234 806 291 7100 taiadedoyin52@gmail.com

Kenya

Naima Farah

Room 22, 2nd Floor West Wing

Patrick Mwangi

Aquarius Media Ltd, PO Box 10668-11000

Nairobi, Kenya

Tel: 0720 391 546/0773 35 41

Email: mwangi@aquariusmedia.co.ke

Royal Square, Ngong Road, Nairobi

Tel: +254 729 381 561 naimafarah_m@yahoo.com

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