Africa stands at the cusp of an unprecedented opportunity for rapid and sustainable development, driven by the confluence of the European Green Deal and the digital revolution. The European Green Deal, with its ambitious targets of achieving climate neutrality by 2050 and reducing greenhouse gas emissions by at least 55% by 2030, sets the stage for a transformative journey towards a resource-efficient and competitive economy. As Europe strives to lead the charge in combating climate change, Africa emerges as a key player, rich in the critical minerals essential for green technologies.

The Critical Minerals Africa conference in Cape Town highlighted Africa’s strategic position as a source of minerals crucial for batteries, solar panels, and other green technologies. While the global demand for these minerals is set to soar, Africa’s mining industry traditionally follows a “pit-to-port” model, exporting raw materials for processing elsewhere. The challenge now is to reshape this landscape, fostering local processing and value addition on the continent.

The European Green Deal emphasizes the need for reliable access to critical raw materials (CRMs), recognizing their importance across industries and in technological advancements. Africa, endowed with abundant reserves of CRMs such as cobalt, lithium, graphite, and manganese, has a golden opportunity to redefine its role in the global supply chain. The African Green Minerals Strategy, currently under development, becomes a pivotal tool to leverage the continent’s mineral resources for the benefit of its people.

Yet, navigating this path requires addressing significant challenges. From the need for targeted policies supporting domestic processing to ensuring socially and environmentally responsible mining practices, Africa must balance the potential benefits with emerging social and environmental disruptions. Clustering production through special economic zones and industrial parks, coupled with the development of regional value chains, can foster collaboration and economic diversification.

Another critical catalyst for heightened geopolitical concerns surrounding critical minerals lies in China’s undisputed dominance in both the production and processing of these vital resources. The strategic vulnerability of many countries and regions, including the US and the European Union, to potential disruptions in supply chains controlled by China has sparked a reassessment of global dependencies. Responding to this realization, the EU Parliament endorsed the Critical Raw Materials Act in September of this year. Similarly, in the US, initiatives like the American Battery Minerals Initiative and the Inflation Reduction Act aim to bolster access to critical minerals and stimulate local production of green technologies. Notably, Australia, Canada, India, and the UK have recently unveiled their respective critical mineral strategies, underlining the global shift towards securing critical minerals through diversified supply chains. The Minerals Security Partnership, a collaborative effort involving 13 countries and the European Union, has emerged as a proactive force, mobilizing public and private investments to fortify responsible critical minerals supply chains on a global scale.

However, the continent faces difficult choices. Diversifying value chains away from the least-cost producer, often China, may impact prices and competitiveness in renewable energy projects and electric vehicles. Africa, however, need not accept its position as a mere source of unprocessed minerals. Partnerships are forming, investments are being made, and policies are adapting to reposition the continent within global supply chains. Strengthened governance frameworks will ensure that these efforts contribute to Africa’s ecosystems and its people.

The story of Africa’s role in the global energy transition is still unfolding, and as we close this chapter, the pages ahead are filled with possibilities. Through collaborative efforts, sustainable practices, and visionary policies, Africa stands poised to not only be a supplier of critical minerals but be a leader in shaping a future where the benefits of progress are this time, truly, shared by all.