Africa’s Green Mineral Wealth: A blessing, not a Curse

Africa’s Green Mineral Potential

Africa is well known for its strategic resource riches. According to the World Economic Forum, Africa holds significant reserves of green minerals. This means that Africa holds a significant global position in reserves for minerals such as manganese, cobalt, and other rare earth elements, which makes Africa a crucial player in the global landscape when it comes to green minerals, which are essential for the transition to a low-carbon economy. From the chart, it is estimated that Africa holds about 48% of cobalt and manganese, 22% of Graphite, 6% of copper and Nickel, while Lithium and other minerals stand at about 1% of global reserves.

Strategic Opportunities for Africa

According to the IMF, it is projected that there is going to be a global increase in demand for green minerals in the coming decades. Leveraging these abundant resources and the projected demand, Africa has the potential to become a global leader in the green energy revolution. By establishing strategic partnerships, investing in local industries, and ensuring ethical mining practices, African nations can maximise the benefits of these green mineral reserves.

Economic Benefits and Growth Potential

Amongst the most noticeable benefits a country will gain from green minerals is economic growth. Countries like the Democratic Republic of Congo (DRC) and South Africa hold significant reserves of cobalt and manganese, respectively. It is estimated that artisanal small-scale mining of cobalt in the DRC contributes about 12 - 21% of the world’s cobalt annually. This emphasises the country’s significant position in the cobalt market. Leveraging this and investing in the local industry by the government will also create an employment avenue, which will bring revenues in taxes to the government. Research in this sector will attract more investments that will lead to technological advancements, fostering broader economic development.

Risks and Challenges: The Paradox of Plenty

While acknowledging the many benefits these green minerals will bring to the economy of Africa, it is significant to note that the ‘paradox of plenty’ can expose the significant economic and social challenges that can occur due to improper management and governance.

Africa, for ages, has suffered many challenges spanning from governance and corruption to economic disparities and social issues. A budding industry without proper regulations is most likely to suffer the same fate. While there is high potential in the mining of green minerals, it is imperative that we do not overlook the direct impact it has on the environment, especially environmental degradation such as deforestation, soil erosion, and water pollution. Proactive steps must be taken to avoid repeating the mistakes of the past.

Lessons from Global Success Stories

Countries such as Botswana and Chile are known for their effective management of their diamond and copper resources, respectively. Botswana has used its mineral wealth to achieve significant economic growth and development, while Chile has also implemented policies that ensure that a significant portion of mining revenues is invested in social programs and infrastructure. These are African countries reaping the benefits of adopting proper strategies. Norway, although not an African country, serves as a model for how resource wealth can be managed sustainably and transparently. Research on Chile's mining sector reveals that it remains a critical pillar in its national economy. In 2022, the sector accounted for 58% of all exports.

Recommended Strategies for Sustainable Development

Notable strategies which can be derived from the story of Botswana, Chile, and Norway include the implementation of robust legal frameworks and anti-corruption measures, value addition to raw minerals before exporting, which will create more jobs and retain more economic benefits. Finally, more Corporate social responsibility activities should be carried out, ensuring that the local communities benefit from mining activities.

Green Minerals: Blessings, not a Curse

By adopting these strategies, African nations can harness their green mineral resources to support local development and contribute globally to sustainability while turning the continent’s mineral wealth into a blessing.

Bibliography

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The writer, Ing. Stephen Fokuo, PE-GhIE

 is a Petroleum Engineer with over five years of experience in Ghana’s oil and gas industry. He currently works as an Operations Engineer at Ghana National Gas Company, where he focuses on gas transportation, system operations, maintenance, and energy systems.

Stephen has strong expertise in gas conditioning, gas chromatography, and data analysis. He is a licensed Professional Engineer and an active member of the Society of Petroleum Engineers (SPE), contributing to mentoring and career development programs for young professionals.

Passionate about the future of energy, Stephen is keenly interested in green energy, green minerals, energy systems, and driving Ghana’s energy transition. He is committed to supporting sustainable innovations and bridging traditional oil and gas operations with cleaner, more efficient energy solutions.