Did you know that Africa’s wealth in critical minerals like lithium, cobalt, and rare earth elements is shifting the continent’s global economic role from mere raw material supplier to a pivotal player in green industrialisation? The growing global demand for these minerals (essential for batteries, electric vehicles, and renewable energy technologies) has fuelled efforts across Africa to move beyond extraction toward local beneficiation and value addition. This transition aims to drive inclusive industrial growth, create jobs, and embed sustainable development deep into Africa’s green supply chains.
How is Africa building local value in green mineral supply chains?
- Advancing local beneficiation capabilities: African countries are investing in mineral processing, refining, and manufacturing to keep more of the value chain on the continent. This includes the development of battery precursor material production, lithium-ion cell assembly, and rare earth element separation facilities. For instance, South Africa plans to become a regional hub for refining critical minerals and producing battery materials, while countries like Namibia and DR Congo are expanding their processing capacity to reduce raw export dependency.
- Strengthening governance and regional coordination: The African Green Minerals Strategy (AGMS) promotes transparent, just, and sustainable resource management. Coordinated efforts among nations aim to unify policies that fuel investment in downstream industries, enhance geoscience knowledge, and develop skilled technical workforces capable of supporting industrial growth.
- Leveraging industrial policy and incentives: Strategic interventions include establishing special economic zones, beneficiation hubs, and incentives that encourage private investment in mineral value addition. Support for research and development, access to finance, and capacity building form a basis for efforts to transition from commodity export towards industrial diversification.
Why is building local value critical for inclusive industrial growth in Africa?
Local beneficiation maximises economic gains by creating higher-skilled jobs and expanding domestic industries connected to the green economy. This reduces vulnerability to commodity price volatility, encourages technology transfer, and aligns with Africa’s climate commitments by enabling sustainable supply chains. This holistic approach supports industrialisation while ensuring resource wealth benefits wider populations beyond mining regions.
How can stakeholders accelerate Africa’s transition from minerals to materials?
- Invest in infrastructure and technology to support downstream processing and manufacturing.
- Promote regional collaboration to harmonise regulatory frameworks and market access.
- Develop skilled human capital through education, training, and innovation ecosystems.
- Invest in sustainable mining and industrial practices aligned with environmental and social governance criteria.
Strategy&Ops is committed to assisting African industry players and investors to unlock the full potential of green mineral value chains. Our tailored advisory services focus on integrated value chain development, capacity building, and governance strengthening to accelerate inclusive and sustainable industrial growth. Contact our multidisciplinary team at info@strategyandops.net to partner in building Africa’s green industrial future.
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References
African Union (2025) Africa’s Green Minerals Strategy (AGMS). Available at: https://www.au.int/sites/default/files/documents/44539-doc-AGMS_Final_doc.pdf African Union
African Pact (2025) ‘Africa’s critical minerals: from resources to industrial power’, 2 October. Available at: https://africanpact.org/2025/10/02/africas-critical-minerals-from-resources-to-industrial-power/ African Pact
ISS Africa (2025) ‘Africa has critical minerals but needs a unified strategy’, 22 May. Available at: https://futures.issafrica.org/blog/2025/Africa-has-critical-minerals-but-needs-a-unified-strategy ISS African Futures
South Africa. Department of Mineral and Petroleum Resources (2025) Critical Minerals and Metals Strategy South Africa 2025. Available at: https://www.gov.za/sites/default/files/gcis_document/202505/critical-minerals-and-metals-strategy-south-africa-2025.pdf