African mining must look to the mineral value chain to unlock economic growth and mitigate the impact of shifting global trade dynamics.
Shifting Global Trade and the Need for Local Processing
The African mining sector is at a critical juncture, with experts calling for a shift toward local mineral processing to maximize value addition. Speaking at the Mining Indaba conference, industry leaders emphasized the importance of processing raw materials within the continent to strengthen Africa’s position in the global supply chain. This strategic shift is particularly crucial as trade tensions between the U.S. and major economies, such as China, reshape global mineral flows.
“We must invest in local beneficiation because it is a business decision, not a political one,” South Africa’s Minister of Mineral and Petroleum Resources, Gwede Mantashe, said.
Samaila Zubairu, CEO of the Africa Finance Corporation, said “Instead of shipping out raw bauxite, we must focus on transforming it into alumina and aluminum right here in Africa,” he said.
Reducing Dependence on Foreign Refining
Africa holds a significant share of the world’s mineral resources, including essential metals like cobalt, lithium, and copper—key components in renewable energy and technology sectors. However, much of this wealth is exported in raw form, with value addition occurring overseas. This dependency not only limits economic returns for African nations but also exposes the industry to external market fluctuations. Mining executives and policymakers at Indaba stressed the need for investment in local refineries and processing plants to retain more economic benefits within the continent.
Marit Kitaw, of the Africa Minerals Development Centre in Addis Ababa, said that time was short, “Africa must take ownership of its mineral wealth by processing it locally. This is not just about economic growth; it is about safeguarding our future against an unpredictable global trade environment,” Kitaw said.
Opportunities for Regional Economic Growth
Establishing local mineral processing hubs could create employment opportunities, develop specialized industries, and enhance regional trade. African nations that prioritize domestic value addition can increase their negotiating power in international markets, securing better trade agreements and fostering industrial development. Moreover, by investing in local processing infrastructure, governments can boost tax revenues and strengthen economic resilience against external shocks.
Hugo Pienaar, the South African Minerals Council’s chief economist, said, “There is a significant opportunity to showcase the country’s mineral potential and contribute to the global transition to a prosperous, low-carbon future.”
Policy and Investment Challenges
Despite the clear economic benefits, significant challenges remain. Infrastructure deficits, high energy costs, and regulatory hurdles often deter investment in local mineral processing. To overcome these barriers, governments must provide incentives such as tax breaks, subsidies, and streamlined regulations to attract both domestic and foreign investors. Additionally, partnerships with global technology firms could facilitate knowledge transfer and accelerate the development of modern processing facilities.
A Strategic Shift for Africa’s Mining Future
The call for local mineral processing aligns with Africa’s broader industrialization goals and long-term economic sustainability. As global trade patterns evolve, Africa has a unique opportunity to reduce its reliance on foreign processing and increase its share of the mineral value chain. By addressing policy challenges and investing in infrastructure, the continent can transform its mining sector into a driver of sustainable growth and economic empowerment.
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