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Unlocking Industrialisation: African Union’s Call for Strategic Mineral Resource Management

March 31, 2025

(4 Minutes Read)

The African Union (AU) has emphasised the importance of African countries harnessing their vast mineral resources through coordinated efforts aimed at promoting sustainable development, industrialisation, and economic transformation. In a statement after a high-level meeting in Addis Ababa, the AU stressed the need to reassess mineral resource governance across the continent to ensure fair economic benefits.

This initiative aligns with Africa’s Green Minerals Strategy (AGMS), which seeks to transform Africa’s role in global mineral markets from a mere supplier of raw materials to a center for green industrialisation and value addition. The strategy highlights Africa’s potential to excel in the production and processing of essential minerals necessary for a fair global energy transition, particularly those needed for renewable energy technologies like lithium, cobalt, and rare earth elements.

Ron Osman, Director of Industry, Minerals, Entrepreneurship and Tourism at the AU Commission, underscored the urgency of leveraging Africa’s mineral wealth to drive industrialisation instead of exploitation. He stated, “Africa holds the key to the world’s ambitions for a just energy transition. Our continent is rich in critical green minerals, but the challenge is turning this potential into equitable and sustainable growth for Africa while contributing to global progress.” Osman also pointed out that the AGMS offers African nations the chance to take greater control over their resources, promote regional economic growth, and lessen dependence on raw material exports.

Although Africa is one of the leading producers of essential minerals, much of its output is exported in raw form, limiting local economic benefits. The continent’s lack of processing infrastructure and value addition capabilities makes its economies vulnerable to fluctuations in global commodity markets. The AU emphasized that transitioning to value-added production would enhance Africa’s negotiating power in global trade, enabling better agreements with international partners and investors.

The strategic management of Africa’s mineral wealth has been contentious historically, with resource-rich nations often struggling to maintain control over their natural assets, leading to agreements that favor foreign corporations over local empowerment. Many African countries have relied on raw material exports, with insufficient investment in domestic refining and processing. The AU’s recent call to action aims to rectify this imbalance by urging nations to improve regulatory frameworks, boost local manufacturing, and ensure that extracted resources benefit national economic development.

The meeting in Addis Ababa convened policymakers, industry leaders, and development partners to discuss how African nations can enhance their collective bargaining power in light of increasing global demand for critical minerals. The AU’s message is clear: to achieve long-term economic resilience, African countries must evolve from being mere resource exporters to influential players in global supply chains. This shift necessitates bold policies, strategic investments, and enhanced regional cooperation to develop the necessary infrastructure for mineral processing.

Moreover, the AU highlighted that a well-coordinated approach to mineral governance would not only promote industrialization but also support the continent’s electrification efforts. With Africa’s population expected to reach 2.5 billion by 2050, the demand for sustainable and reliable energy solutions is more urgent than ever. By leveraging its mineral wealth, Africa can position itself as a leader in green energy technologies, reducing reliance on external energy sources and accelerating economic self-sufficiency.

To ensure that mineral agreements focus on local economic benefits, the AU urged African governments to implement policies mandating local processing and manufacturing. This might involve creating special economic zones dedicated to mineral processing, investing in research and development, and providing incentives for local businesses engaged in mineral-related industries. Strengthening local value chains would not only generate jobs but also foster innovation in high-tech sectors like battery production, electric vehicle manufacturing, and renewable energy storage.

The AU’s renewed emphasis on mineral-based industrialization comes at a time when global markets are rapidly shifting toward sustainable energy solutions. With the growing international demand for green minerals, Africa has a unique opportunity to redefine its role in sustainable resource management. However, this transition will require decisive action from African governments, regional organizations, and private sector stakeholders to ensure that economic benefits are distributed fairly across the continent.

As the world accelerates its move toward low-carbon economies, Africa’s involvement in supplying and processing critical minerals will be crucial. The AU’s focus on regional cooperation and strategic investments is vital in ensuring that Africa’s mineral wealth translates into real economic benefits for its people. By adopting a value-added approach to mineral resource management, African nations can secure their future in the global industry while promoting sustainable development throughout the continent.