Transforming critical minerals into economic opportunities in Africa
Sponsored by RMB CIB
For decades, the value chain has ended at extraction. Now, the conversation is shifting. The question is not whether the continent is wealthy in raw materials — it is how we transform that wealth into long-term economic growth and tangible benefits for Africans.
Acclaimed journalist Crystal Orderson, who specialises in economic and political affairs concerning the African continent, joins 702's Bongani Bingwa to discuss the way this is unfolding.
According to the African Development Bank, minerals account for an average of 70% of Africa’s total exports, contributing approximately 28% to the continent’s GDP. This represents a staggering dependency and serves as a clear indicator of where the opportunity lies: not in exporting more raw materials, but in extracting greater value from them.
Africa holds roughly 30% of the world’s mineral reserves — many of which are critical to the green energy transition. The continent is home to:
- 90% of the world’s platinum group metals
- 40% of global gold reserves
- The largest reserves of cobalt, vital for electric vehicle batteries
- Significant deposits of lithium, manganese, bauxite, uranium, and rare earth elements
When it comes to timber, it's all here, in fact, the top 10 countries. Cameroon and Gabon are part of the top 10 of forestry globally. Africa has the resources, but the question remains: how do we manage it?
- Crystal Orderson, Journalist
That’s the key issue. Resources alone don’t build economies. It’s what you do with them that matters. And increasingly, the continent is realising that the model of raw export with little local value-add isn't sustainable.
We learn lessons from the past, but it's about how we add value to all of this. As the world changes, as geopolitics shift, and everyone looks to the continent again.
- Crystal Orderson, Journalist
Oil was discovered in Nigeria in the 1950s and has been a major oil exporter for a considerable time, lacking its own refineries. Thay changed with the launch of the Dangote oil refinery, largely driven by Nigerian billionaire Aliko Dangote.
It was seen by the government as part of their strategy to reduce their reliance on imported refined products, also strengthening their own domestic fuel supply and, of course, getting that local beneficiation going.
- Crystal Orderson, Journalist
The refinery, established in January 2024, has the capacity to process about 650,000 barrels of crude oil per day. It began petrol processing in September and has already fostered a highly competitive downstream sector.
It's part of Nigeria's own plans to ensure that locals benefit and ultimately consumers pay less for it.
- Crystal Orderson, Journalist
This is what beneficiation looks like in practice: instead of exporting crude and importing expensive fuel, Nigeria can now refine locally, creating jobs, developing industries, and lowering costs for consumers.
We also now see other countries doing the same; Uganda, Angola, and Mozambique have also launched similar projects aimed at increasing local processing capabilities and beneficiation.
— Crystal Orderson, Journalist
The RMB Africa Focus Series continues next week.
You can catch up on episodes you've missed on the RMB Africa Focus Series page on Primedia Plus.