When analyzing the dynamics surrounding Africa’s critical mineral trade and supply chain strategies, it's essential to consider the bilateral relationships between African nations and major global powers, particularly China and the US and the EU. The US and Europe rely on established supply lines from Africa for strategic minerals, yet they remain deeply intertwined with China for value-added manufacturing, such as digital technology infrastructure and clean energy products.¹

This dependency is a focal point for Washington, which is seeking to shift this dynamic through the reauthorization of the African Growth and Opportunity Act (AGOA). China, on the other hand, has solidified its position as a preferred development partner for many African governments due to its track record in delivering infrastructure support, debt relief, and other economic benefits. However, in the race for critical minerals, Africa's true ally will be the countries that centers Africa’s development priorities, supports value addition in critical minerals, enhances trade, and strengthens Africa’s position within global value chains.

To center Africa’s development priorities, several challenges must be addressed to make critical mineral cooperation truly mutually beneficial. One major issue is the lack of transparency and accountability in the sector, which has led to environmental degradation and the displacement of communities in mineral-rich areas.² Without meaningful reforms, profit risks being prioritized over the well-being of citizens and environmental sustainability. Moreover, the Africa Mining Vision often takes a backseat as governments pursue individual bilateral agreements, resulting in fragmentation and missed opportunities for a unified approach to resource development.

Foreign investment, which many African governments rely on, often shifts economic priorities to align with the interests of creditors rather than local populations. This has led to widespread issues, including pollution, human rights abuses, and illegal mining activities.³ For instance, in 2023, Nigeria suspended Chinese mining operations due to illegal titanium ore mining activities.⁴ Namibia and DRC followed suit. Similarly, the DRC, a major supplier of cobalt and coltan, faces severe governance challenges, with reports of human rights abuses in illegal mining operations. The lack of political will to address these issues often stems from the prioritization of corporate interests over local communities.

To achieve sustainable resource development, African countries must strengthen their governance frameworks and enforce accountability within the critical minerals sector. The African Continental Free Trade Area (AfCFTA) offers a strategic opportunity to boost intra-African trade and build industrial capacity, which could help Africa rebalance its asymmetric economic relationships with global powers.⁵

Zimbabwe serves as a case study in this regard. Since 2022, Chinese companies have invested over US$1.4 billion in acquiring lithium projects in Zimbabwe, and in 2023, they were awarded additional licenses that could generate another $2.79 billion in the mining and energy sectors. While these investments signal significant economic progress, they also bring substantial challenges. In rural areas like Mutare and Buhera, dozens of indigenous households have been displaced due to lithium mining operations,⁶ highlighting the social and environmental costs of rapid mining expansion.

African countries are increasingly concerned about the barriers to the sustainable development of their critical mineral resources, including gaps in regulation, widespread human rights abuses, illegal trading practices, and corruption. If these concerns are not addressed, foreign entities will continue to exploit regulatory loopholes, leading to environmental degradation, community displacement, and missed revenue opportunities. To counter these challenges, African countries must prioritize the enforcement of accountability measures and rigorously screen projects for their socioeconomic and environmental impacts. Placing the interests of African populations at the center of the critical minerals boom is essential for lasting development.

It is increasingly recognized that for Africa to advance its economies and improve living standards, harnessing the wealth from its mineral resources through value addition is essential. Regional cooperation, particularly through the Regional Economic Communities, is crucial in fostering synergy for mutual growth. While Africa may not yet compete on a global scale, developing the value chain for critical minerals is imperative for the continent’s long-term economic stability and growth. For example, China leverages its sovereign funds to extend its economic influence globally, and similarly, African countries can strategically allocate available revenues to solidify the foundational aspects of their value addition industries.⁷

To center Africa’s development priorities in the critical mineral race, African nations shall consider adopting a hybrid approach that blends protectionist policies with strategic trade initiatives. This approach would help shield their economies from the undue influence of large economic blocs while simultaneously fostering the development of trade chains essential to the success of the AfCFTA, particularly in the critical minerals sector. The existing diplomatic and multilateral relationships between African nations and these global powers should be leveraged to provide tangible support for the growth of emerging African industries, ensuring that these partnerships deliver real value and contribute to the continent's industrialization.

Lastly, African countries need to amplify their voices on platforms such as FOCAC and the BRI to ensure their development priorities are at the forefront of negotiations with China.

In the space of critical minerals, China should commit to six key areas of cooperation:

(1) supporting the establishment of African geoscience institutions to enhance geological mapping,

(2) advancing mining technology and skills through training and research partnerships,

(3) increasing investments in essential infrastructure like transport and energy,

(4) encouraging localized mineral processing to retain more value within the continent,

(5) investing in Africa's emerging green industries, particularly in battery and EV sectors, and

(6) ensuring Chinese companies adhere to international ESG standards, promoting responsible and sustainable mining practices.

The recent FOCAC 9 shows that Africa is asserting its position and shaping the future of Africa-China cooperation in the critical minerals sector, but more discussions and detailed commitments need to follow.

While this report focuses on Africa-China cooperation in the critical minerals sector, future analyses should explore engagement with other foreign partners. Each partnership—whether with major powers like the US and Europe, or emerging economies like India and the Middle East presents distinct strengths and weaknesses, from technological expertise to investment capacities. Tailoring these reports to specific partnerships will provide a comprehensive understanding of Africa’s positioning in the global critical minerals race, helping African nations align their development priorities with the opportunities offered by different global actors.

1. Carnegie Endowment for International Peace, ‘How the AGOA Reauthorization Process Could Help Diversify U.S. Critical Mineral Supplies’.

2 SAIIA, ‘Navigating Governance Challenges in African Critical Mineral Supply Chains’.

3 SSRN, ‘Prospects and Challenges for the Export of Rare Earths From Sub-saharan Africa to the EU’.

4 Ibid.

5 Carnegie Endowment for International Peace, ‘New Africa Program Director Spotlight: Zainab Usman’.

6 Climate Home News (January 2024), ‘Lithium Boom: Zimbabwe Looks to China to Secure a Place in the EV Battery Supply Chain’.

7 African Development Bank (2021), ‘African Natural Resources Centre. Lithium-Cobalt Value Chain Analysis for Mineral Based Industrialization in Africa’.

Courtesy: Development Reimagined