Africa’s critical mineral opportunity: from extraction zone into manufacturing and innovation hub

Africa,home to one-third of the world’s critical mineral reserves,stands at a crossroads: remain a source of raw exports or become a central player in the global energy transition.

Despite abundant resources — including cobalt,lithium,copper,and rare earth elements — Africa received just 10.4% of global mineral exploration investment in 2024,down from 16% in 2004. This investment gap persists despite Africa offering the highest return on exploration globally. A recent report by the Washington-based Center for Strategic and International Studies emphasizes that mineral exploration is the lifeblood of mining. Without new exploration,future production is jeopardized. The United States and its allies are encouraged to incentivize and de-risk exploration in Africa to reduce reliance on China and bolster supply chain resilience.

A IMF’s analytical note published last year forecasts that Africa could generate $2 trillion in critical mineral revenues over the next 25 years. However,challenges persist: high extraction costs for some minerals,weak midstream infrastructure,unreliable power,and limited local processing. For instance,97% of the DRC’s cobalt is exported unprocessed,and Zimbabwe’s lithium is shipped abroad for refining. Experts urge regional coordination,data investment,and policy stability to attract and retain investors. A case in point is the African Union’s Green Minerals Strategy that promotes integrated value chains fostering local beneficiation,job creation and economic diversification. If managed well,Africa could evolve from an extraction zone into a manufacturing and innovation hub — securing long-term economic gains in a changing energy landscape.