Zambia Pushes for Pan-African Minerals Exchange to Boost Local Value Addition
Zambia Pushes Pan-African Minerals Exchange to Boost Local Mineral Value Addition
Zambian President Hakainde Hichilema, is pushing for the creation of a pan-African minerals and metals exchange aimed at helping African countries capture greater economic value from their natural resources.
The proposed exchange would give African producers greater control over mineral trading while supporting local processing, manufacturing and value addition, according to Jito Kayumba, Hichilema’s adviser on finance and investment.
“The desire of many young Zambians, as well as many Africans across the continent, is to be greater participants in the minerals that come from their soils,” Kayumba said, highlighting growing public demand for greater economic benefits from Africa’s mineral wealth.
The proposal comes amid a broader shift across Africa, with governments seeking to strengthen control over strategic resources, increase domestic processing and expand local ownership.
Countries including the Democratic Republic of Congo, Guinea, Ghana and Zimbabwe have introduced reforms aimed at encouraging mineral refining and restricting the export of certain unprocessed products.
Zambia Builds on Metals Trading Initiative
The proposed pan-African exchange would build on Zambia’s existing metals-trading partnership with Mercuria Energy Group.
Kayumba said the establishment of Zambia’s metals-trading business could help secure mineral supply for a broader African exchange by giving the country greater access to locally produced metals.
Zambia has already discussed the proposed exchange with the Democratic Republic of Congo and two other countries, although Kayumba did not disclose their identities.
The initiative could also complement efforts by Zambia and the DRC to develop a regional electric-vehicle battery value chain.
An agreement between the two countries in 2022 sought to leverage their copper and cobalt resources to establish greater capacity for battery production.
However, progress on the initiative has been limited, partly because the governments lacked direct access to minerals produced by privately owned mining companies.
The situation could improve as both countries develop stronger mechanisms for trading and securing mineral supply.
The DRC has also entered into offtake agreements involving major mines where the state holds minority interests and has established a metals-trading arrangement with Mercuria.
Africa Seeks Greater Share of Critical Minerals Value Chain
The proposed exchange reflects growing efforts by African governments to move beyond exporting raw minerals and capture a larger share of the value generated from the continent’s resources.
Africa supplies significant quantities of critical minerals needed for clean-energy technologies, including copper, cobalt, lithium and other battery metals.
However, much of the processing and manufacturing associated with these minerals takes place outside the continent.
Greater regional cooperation could help African countries develop integrated mineral value chains, strengthen bargaining power and attract investment into refining and manufacturing.
Kayumba warned that failing to translate Africa’s mineral wealth into jobs and economic opportunities for its rapidly growing young population could have serious implications for political stability.
“Africa will be increasingly unstable if the population of young people continues to rise at the rate that it is rising, and the economy does not follow suit,” he said.
He also cautioned that governments risk losing public support if democratic systems fail to deliver meaningful economic opportunities for young people.
“Democracy is at risk in Africa because if it does not deliver the dividend that meets the needs of young people, then people start cheering on what happens in the Sahel,” Kayumba said, referring to a region that has experienced military coups, Islamist insurgencies and increased state intervention in mining assets.
The proposed pan-African minerals and metals exchange could therefore become part of a wider continental strategy to strengthen mineral sovereignty, promote regional trade and ensure that Africa captures more value from the resources needed to power the global energy transition.
