Af rica is emerging as a pivotal player in the global trade landscape. As the world's appetite for critical minerals continues to grow, the continent is finding itself at the crossroads of a new economic era, poised to harness the potential of its mineral wealth.Duncan Bonnett, a partner at Africa House, says ongoing contestation between the Western world and the East, or the West and the Global South, is now inf luencing Africa in ways that could be very positive if its leaders choose to assert their positions.“Currently around 65 to 70% of these critical minerals are produced and processed in China. This dominance has raised concerns among governments and companies, especially those not in close alignment with China. The need for diversified supply chain access has become apparent, and Africa is emerging as a potential solution,” Bonnett told Freight News. “Africa possesses significant reserves of critical minerals, many of which are yet to be mined but are in the process of being developed. This has sparked a competition of sorts, with various governments, countries, and mining groups vying to secure access to these valuable resources.”He said it was not only the West that was interested in Africa’s minerals, but Chinese companies, in particular, were also seeking control over critical minerals by acquiring mining companies and establishing intermediary processing plants in countries like the Democratic Republic of Congo (DRC) and other jurisdictions. “This has led to a degree of local beneficiation, as African nations increasingly prioritise the processing of these minerals within their borders.“In recent years, several African governments, including Zimbabwe, Namibia, Tanzania, and the DRC, have imposed bans on the export of raw minerals. The aim is to encourage the establishment of processing plants and factories within their borders. This policy shift not only promotes industrialisation but also allows African nations to benefit from higher returns on these valuable commodities.”Chinese companies have already begun setting up processing plants for minerals like lithium and cobalt in the DRC and Zimbabwe. These initiatives signify a significant shift in Africa's role in the global supply chain for critical minerals, making the continent an increasingly important player in this vital sector.In turn, the United States has embarked on a venture to produce electric vehicle batteries in Zambia and the DRC. “While this move aims to process critical minerals locally, it faces competition from China, which has been ahead in this race. The pace at which the US operations can establish a significant footprint remains a topic of debate,” said Bonnett.Underpinning all of this is infrastructure development, which is expected to scale up significantly over the next few years in Africa. “There is no point to saying we have all these minerals but there is no way to move them from the mine. Investment in roads, rail and ports is expected to see dramatic investment across the continent.”
