Africa's bid for mineral mastery
Nearly 150 years ago, rivalry among European powers set off a 鈥淪cramble for Africa鈥� that led to a century of colonial rule and a complicated legacy of dependency on foreign aid and technology.
Now, booming global demand for rare earth elements and minerals has set off another scramble toward the continent. But this time, Africa鈥檚 sovereign governments have the opportunity to steer the interaction toward priorities that increase benefits to their citizens through less lopsided investment terms.聽
鈥淎frica is no longer merely a supplier, but central to global mineral diplomacy,鈥� according to Shahrukh Wani, an analyst at the London School of Economics鈥� International Growth Centre. The interest of external players, he pointed out, 鈥渂rings leverage [for Africa], but only if it is managed with purpose.鈥�
This week鈥檚 annual Mining Indaba (conference) in Cape Town, South Africa, highlights the potential for African nations to act in partnership in their extractive industries. Thousands of government officials, mining executives, and global investors from Asia, Europe, the Americas, and the continent are attending. The United States, despite its fractious relationship with the host country all last year, has reportedly sent its largest delegation ever to this event.
The world鈥檚 major economies are competing for access to critical minerals used in modern technology 鈥� from smartphones and electric vehicles to computing and artificial intelligence. Africa鈥檚 estimated reserves include cobalt (55% of known world deposits), manganese (nearly 48% of global supply), platinum (90%), graphite, copper, nickel, and lithium.
Referencing rising resource tensions and the conference theme 鈥� 鈥淪tronger Together: Progress Through Partnerships鈥� 鈥� South Africa鈥檚 minerals minister, Gwede Mantashe, observed: 鈥淭o us, this is not merely a slogan it is a strategic imperative for Africa to act collectively, speak in one voice ... in our engagement with global powers and investors.鈥�
One effort to shape unified economic and governance approaches took place last June, as African leaders gathered in Morocco for a three-day session on improving financial autonomy and accountability. Corruption and inefficient regulations and infrastructure have long constrained economic growth across Africa.
Sudanese British businessman and philanthropist Mo Ibrahim, whose foundation hosted the event, called for 鈥渂uild[ing] solutions from within.鈥� And Pedro Pires, former president of Cape Verde, stressed the need for having 鈥渃onfidence in your own institutions鈥� to effectively manage national resources and wealth.
A recently issued regional 鈥渃ritical minerals framework鈥� 鈥� which calls for growing and spreading mining and processing activities across different African countries 鈥� also highlighted the importance of being able to operate 鈥渦nder strong and fair rules.鈥澛�
The current flurry of cross-continental discussions and global attention signals an opportunity for African nations to put their commitment to rule-based governance into practice.
As Dr. Ibrahim told colleagues in June, 鈥淚t is for us to take responsibility and put in place the fundamentals we need.鈥�
