The African continent stands on the brink of a major economic transformation as the newly established Critical Minerals Africa Group emerges to bridge the gap between local mineral resources and international markets. This London-based organization aims to unlock Africa's vast critical minerals potential, with projections suggesting possible annual revenues of $6.8 billion through refined mineral processing.
Sub-Saharan Africa's mineral wealth is substantial, holding approximately 30% of the world's proven critical mineral reserves. The International Monetary Fund projects that proper utilization of these resources could boost the region's GDP by more than 12% by 2050, representing a transformative opportunity for the continent's economic landscape.
CMAG's chief executive, Veronica Bolton Smith, emphasizes the dual opportunity present in this initiative. African businesses and governments have the chance to emerge as global industry leaders, while international firms can benefit from the region's tremendous growth potential. The organization's primary focus is on facilitating these connections and providing necessary tools and knowledge for successful partnerships.
Recent research from the UK's Manufacturing Africa programme and the Faraday Institution reveals promising prospects for mineral refineries. The study indicates that establishing individual refineries for lithium, nickel, manganese, and copper could generate 3,500 jobs throughout the battery supply chain. Countries like the Democratic Republic of the Congo, South Africa, Zambia, and Zimbabwe are particularly well-positioned, given their abundant reserves and ongoing extraction operations.
The economic viability of African mineral processing is further demonstrated by competitive manufacturing costs. Nations like Morocco and Tanzania could achieve battery manufacturing costs of $72 and $68 per kilowatt-hour respectively, matching European rates that benefit from subsidies. This cost-effectiveness positions African nations as strong contenders in the global mineral processing market.
CMAG's initiative focuses on creating resilient and diversified supply chains while ensuring local communities benefit from the economic development. This approach addresses both global market demands and local economic needs, promising a more equitable distribution of resources and opportunities.
The organization's launch comes at a crucial time when global demand for critical minerals is surging due to green energy transitions and technological advancement. By connecting African resources with international markets, CMAG aims to establish sustainable partnerships that benefit both local economies and global supply chains.
