Africa is entering a significant new phase in its economic development, shifting from simply supplying raw materials to building industries that process and refine them locally. The continent holds about 30 per cent of the world's critical mineral resources, positioning it crucially in the rapidly expanding clean-energy economy. This presents an opportunity to turn mineral wealth into jobs, investment, and long-term economic value.
The Democratic Republic of Congo remains central to the global cobalt market, while lithium resources are attracting growing investment across countries including Zimbabwe and Namibia. However, mineral wealth alone does not guarantee industrial development. Much of Africa's critical-mineral processing capacity remains outside the continent, leaving African producers with a smaller share of the value generated further along the supply chain.
Governments across the continent are increasingly exploring policies that encourage local processing rather than the export of unprocessed ores. Zimbabwe and Namibia have introduced measures restricting exports of certain unprocessed minerals, while the DRC and Zambia are seeking to strengthen domestic processing and beneficiation. This shift aims to capture more value from critical minerals and create a more sustainable and equitable mining industry.
Major infrastructure investments are supporting the shift towards local processing. The Lobito Corridor is emerging as an important trade route linking mineral-producing areas of the DRC and Zambia with Angola's Atlantic coast. The United States International Development Finance Corporation has committed up to $553 million to upgrade and rehabilitate about 1,300 kilometres of railway and the Lobito mineral port.
Better transport is only one part of the equation; processing minerals requires reliable electricity, modern industrial facilities, skilled workers, and predictable regulations. Energy is therefore becoming inseparable from Africa's mineral-industrialisation ambitions. The African Development Bank recently announced $20 million in reimbursable grants for four green-hydrogen and derivatives projects in Egypt, Morocco, Namibia, and South Africa.
Green hydrogen could become particularly important for mineral processing because it offers a pathway towards lower-carbon industrial production. This creates an opportunity to connect renewable energy, mineral beneficiation, and new export industries. Infrastructure development must therefore happen alongside industrial policy to ensure that Africa retains more value from its critical minerals.
The ultimate measure of success will not be how much mineral Africa exports, but how much economic value the continent retains. Achieving that transformation will require coordinated action from governments, financial institutions, and the private sector, supported by infrastructure, reliable energy, skills development, and clear investment frameworks.
Key points
- Africa holds about 30 per cent of the world's critical mineral resources.
- Governments are exploring policies to encourage local processing of critical minerals.
- Infrastructure development and industrial policy must happen alongside each other to ensure Africa retains more value from its critical minerals.
