Here’s a startling truth: despite Africa’s rich mineral resources, the continent is being left behind in the global race to dominate the energy transition. While billions are poured into minerals like lithium, cobalt, and nickel, Africa’s role remains shockingly limited to raw extraction—a missed opportunity that could reshape its economic future.
In 2024, a staggering $28.6 billion was invested in the extraction and refining of these critical energy minerals, according to the Global Landscape of Energy Transition Finance 2025 report by the International Renewable Energy Agency (IRENA). Since 2018, cumulative investments have soared to $86 billion, with nearly two-thirds of that surge occurring between 2022 and 2024. This explosion in funding is driven by the world’s insatiable demand for batteries, electric vehicles, and other low-carbon technologies. But here’s where it gets controversial: while Africa is home to vast reserves of these minerals, it’s largely excluded from the high-value refining and processing stages that generate the most profit.
Take cobalt, for example. The Democratic Republic of Congo (DRC) produces the majority of the world’s supply, yet nearly all refining happens abroad—primarily in China, followed by Finland, Canada, and Norway. Similarly, lithium extraction is dominated by Australia, Chile, China, and Argentina, with Zimbabwe contributing a tiny fraction despite its significant reserves. Even nickel, though more geographically dispersed in extraction, sees its refining concentrated in China and Indonesia. And this is the part most people miss: Africa’s exclusion from these advanced stages isn’t just an economic oversight—it’s a structural barrier that perpetuates dependency on foreign markets.
Some African nations are fighting back. Zimbabwe, for instance, plans to restrict lithium exports starting in 2027 to incentivize domestic processing. The DRC has also taken steps, using regulatory tools to adjust production rules and lay the groundwork for industrialization. These efforts reflect a bold ambition to climb the value chain, but they face daunting challenges. The global refining and manufacturing ecosystem is deeply entrenched in countries with robust industrial infrastructure—a level of development Africa is still striving to achieve.
This raises a critical question: Can Africa break free from its role as a raw material supplier and become a key player in the high-value stages of mineral processing? Or will it remain trapped in a cycle of extraction, leaving the profits—and the power—in foreign hands? What do you think? Is Africa’s push for local value addition a realistic goal, or is it an uphill battle against global economic forces? Share your thoughts in the comments—this is a conversation that needs to happen.
