Africa stands poised to become a key driver of global economic growth in the coming century, fueled by its favorable demographics, abundant natural resources and rapid technological adoption. With the youngest population globally, a growing middle class, and significant reserves of critical minerals, the continent is set to leverage its potential for substantial economic advancement. Mining, in particular, represents a major opportunity, given that many of the world’s essential minerals and metals are found beneath African soil.
As a South African mining entrepreneur with interests across 26 African countries, I have witnessed firsthand the immense potential of both South Africa and the broader African continent in the mining sector. Two key factors contribute to the increasing global interest in Africa’s mining industry:
- Rich resource base: Africa is home to 30% of the world’s critical minerals. Several African nations lead in various industries: South Africa holds 80% of the world’s platinum group metals reserves; Morocco has over 50 billion tons of phosphate (70% of the global total); the Democratic Republic of Congo (DRC) possesses the largest cobalt reserves; Mozambique and Tanzania collectively account for 13% of global graphite; and Gabon has the second-largest manganese deposits. Additionally, Africa dominates the gold and diamond markets, producing 65% of the world’s diamonds and nearly 30% of global gold production.
- Growing demand and technological advancements: The demand for critical minerals has surged and is projected to continue rising sharply. By 2030, the demand for these metals is expected to more than double and quadruple by 2050. Revenues from key minerals like copper, nickel, cobalt, and lithium are anticipated to reach $16 trillion over the next 25 years, with sub-Saharan Africa potentially benefiting from over 10% of this total. Moreover, renewable energy technologies are expected to drive significant demand for minerals, with Africa holding about one-third of the world’s green mineral reserves. The opportunity to shift from exporting raw minerals to developing local processing facilities could further enhance Africa’s economic growth.
Understanding Africa’s unique context
Africa’s crucial role in the global minerals and metals market has increasingly become the focus of discussions, such as those at the annual London Indaba. Experts from around the world gather to explore market insights, sustainable practices, and strategic opportunities, emphasizing the need for increased collaboration and partnerships to meet future demands.
However, a common misconception at these events is treating Africa as a monolithic entity rather than a diverse continent with 42 currencies, 54 countries, 3,000 languages, and nearly 1.5 billion people. This one-size-fits-all approach creates misunderstandings about the distinct challenges and opportunities within each nation. Effective strategies must recognize and address the unique cultural, political, and infrastructural realities of each country.
For instance, recent discussions at the DRC Mining Week focused on issues related to artisanal mining and its environmental and ethical implications, while South Africa’s Mining Indaba highlighted technological advancements for a lower carbon future. Such diverse concerns underscore the need for tailored strategies.
Some African countries, like Namibia, Ghana, and Zimbabwe, have implemented export bans on unprocessed minerals to stimulate local growth. While controversial, these decisions illustrate the importance of developing region-specific strategies that align with each country’s unique needs and goals.
The path forward
To fully realize Africa’s potential as a major global supplier, global mining entities must prioritize understanding each country’s unique contributions, economic forecasts and future capabilities. Developing robust, localized strategies will enable a more accurate and impactful engagement with Africa’s diverse mining opportunities.
By embracing Africa’s diversity and crafting tailored approaches, the continent’s role in the global mining sector can be more effectively harnessed, driving substantial economic development and ensuring that Africa’s rich mineral resources benefit both the continent and the world.
Reon Barnard is a mining entrepreneur and business builder. He serves as Director and Shareholder of Jabali Mining Services, Co-Founder of BCR Holdings, Chairman of The Sekta Group, Director of Barrock, and CEO of Tabono.
