Report: Africa can Boost Critical Minerals Supply Chains Through Strategic Investments and Technology
African countries have the potential to enhance their position in the global critical minerals supply chain by leveraging technology for exploration, fostering attractive investment environments, and diversifying their international partnerships. This is the key finding of a report published on July 1, 2024, by the American think tank Atlantic Council.
Titled “From Greenfield Projects to Green Supply Chains: Critical Minerals in Africa as an Investment Challenge,” the report highlights Africa’s central role in the global energy transition due to its vast mineral resources crucial for a low-carbon economy. The continent holds approximately 30% of the world’s mineral reserves, many of which are vital for producing electric batteries, solar panels, wind turbines, and other clean energy technologies.
Studies show that Africa possesses substantial shares of global reserves for over a dozen critical minerals necessary for the energy transition, including:
-Platinum Group Metals (92%)
-Cobalt (56%)
-Manganese (48%)
-Yttrium (42%)
-Chromium (36%)
-Bauxite (22%)
-Graphite (22%)
-Tin (20%)
Global demand for these raw materials is projected to more than double by 2030. The World Bank estimates that to limit global warming to below 2°C, production of graphite, lithium, and cobalt must increase to 3.1 billion tonnes by 2050, representing a more than 450% rise from 2019 levels.
Despite this potential, experts warn that Africa may not fully capitalize on its critical mineral wealth and could miss significant investment opportunities.
The International Energy Agency forecasts that between $180 billion and $220 billion should be invested in critical mineral exploitation from 2022 to 2030.
However, Africa is expected to attract only about 10% of these investments, amounting to $18 billion to $22 billion—far less than its potential share.
