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The report is authored by the Washington-based United States Institute of Peace (USIP) and is widely discussed both at the policy and corporate levels. The report says that changes are needed to safeguard against export controls and market manipulation by geopolitical competitors
A report suggests that the US must refine its Africa policy with a focus on critical minerals. It also urges the US administration to boost its diplomatic and commercial presence in African mining hubs. Analysts maintain that the report is the first organized effort by the US Administration to course correct its engagement with Africa and that way an admission of Chinese head-start in its cooperation with the African continent in general and countries in particular, especially mineral rich Democratic Republic of Congo.
The report is authored by the Washington-based United States Institute of Peace (USIP) and is widely discussed both at the policy and corporate levels. The report says that changes are needed to safeguard against export controls and market manipulation by geopolitical competitors.
Of late, there is a realization that China has covered a lot of distance in its Africa focussed policy pushing behind all other nations, particularly the US. A sizeable chunk of Chinese investments is in the extractive industry followed by in infrastructure. Africa is the depository of world’s roughly 40% of the mineral resources. Chinese firms owned or had stakes in 15 of the 19 cobalt producing mines in the Democratic Republic of Congo (DRC) which produces more than 70% of the world’s cobalt. It also has a big trade partner in Zambia, the world’s sixth-largest copper producer and the second-largest cobalt producer in Africa.
The USIP report also recommends that the U.S. increase the physical presence of diplomatic and commercial officers in mining centers. The United States heavily relies on imports for many critical minerals for use in electric vehicle batteries and other applications such as cobalt, graphite and manganese.
The report is the result of a senior study group constituted to explore the role Africa plays in the United States’ efforts to diversify US critical mineral supply chains and how new investment in partnerships with African countries could help drive economic development and strengthen peace and security on the African continent.
The United States, its allies, and the private sector can play a positive role—including by offering a better alternative to an approach to extracting Africa’s critical minerals common to Chinese companies, which too often has offered little local value and has resulted in corruption and human rights abuses, including child labor exploitation, the report says.
Major recommendations of the Report are:
· Sharpen US-Africa policy with a focus on critical minerals. The report suggests the United States to design a comprehensive critical minerals strategy that aims to build mutually beneficial partnerships with Africans.
Empower African civil society and the media to ensure the benefits of extractive industries flow to the common man. In this regard, critical role of organizations like USAID has been stressed to ensure fiscal transparency and rule of law in the continent.
Tactically address Chinese mining in Africa. All potential relationships with companies must be thoroughly vetted to ensure compliance with human rights, child labor, environmental, and other high standards and laws, but a tangential Chinese connection alone—particularly involving basic services or infrastructure—should not necessarily disqualify a US firm from receiving US government support.
The US-DRC-Zambia MOU should be prioritized to fully realize its potential benefits. Transforming the memorandum into a productive partnership will require a significant US effort and dedicated resources. To be most successful, the MOU will also need the full engagement and guidance of the US private sector across the battery supply chain.
Strengthen the impact of the US International Development Finance Corporation (DFC). To make the most of its tools in the African critical minerals sector, the US government should sharpen the Development Finance Corporation (DFC’s) impact by, for example, emphasizing strategic investments that will also meet developmental priorities and increase the corporation’s presence in Africa.
Mobilize the private sector to strengthen African infrastructure. Although budget constraints and other factors limit the United States’ ability to improve African infrastructure, tools exist to mobilize private US resources.
The US government should practice more vigorous commercial diplomacy with a keen eye toward building critical minerals partnerships in Africa. Increasing the physical presence of diplomatic and commercial officers in mining centers is of utmost importance.
The United States is involved in several multinational partnerships involving critical minerals, including the MSP. The MSP was established in 2022 to generate public and private investment in critical minerals production, processing, and recycling, with the ultimate goal of diversifying and securing critical minerals supply chains. Currently, no African countries are included in the MSP.
Expand support for the Young African Leadership Initiative (YALI). The US Department of State and USAID should aggressively pursue increased private and public support for YALI—a highly competitive executive program for young Africans interested in leadership and entrepreneurial training.
Assist Africans in building technical capacity in the mining sector. The United States should partner with Africans to support local critical minerals processing. This could be done in part by helping to establish technical assistance and training centers and regional processing centers—all while being alert to counterproductive critical minerals export policies.
Policymakers should explore the extent to which US mining engagement efforts in Africa may be undercut by the Inflation Reduction Act, disincentivizing critical minerals investment and exports to the United States—exports US processing and manufacturing facilities will rely on for the foreseeable future.
The United States should support efforts to increase benefits for artisanal workers and limit harm from artisanal mining. Yet it should do so while recognizing that formalization and punitive measures can be counterproductive—inadvertently harming artisanal miners and their communities if not carefully managed.
Conclusion:
Experts opine that though the Report amplifies the importance of the African continent and its critical relevance to global growth, the US strategy did not address the real problems of the continent. Mere mentioning about transparency, rule of law, fiscal affirmative actions etc will not make the report superior to that are being conventionally followed for centuries to stash away the rich resources of the country for development elsewhere. The report has not spelt out specific measures that are critically needed to uplift the economic well being of Africa in general. Its focused attention of DRC, depository of pricey rare earth-cobalt-adds weight to the contention that focus is on the minerals of Africa and not People of Africa.
