Africa holds a pivotal position in the global green energy transition, accounting for about 30% of the world’s critical mineral reserves including 70% of global cobalt production and 92% of platinum group metals. Revenues from copper and battery minerals already surpass $20 billion annually, with projections indicating a 65% market value increase by 2030. Despite this potential, Africa largely exports unprocessed minerals, missing out on significant economic opportunities from mineral beneficiation and value addition. Inadequate infrastructure, limited financing, weak governance, and trade dynamics favouring raw material exports hinder sustainable and equitable development within Africa’s critical mineral sector. This policy brief therefore advocates for G20 interventions to promote economic equity and benefit-sharing, sustainable financing, and governance reforms, positioning Africa as a value–added hub for critical minerals.
Building on the principles and outcomes of the UN Panel on Critical Energy Transition Minerals, the G20 New Delhi Leaders’ Declaration, and the Africa Minerals Strategy Group, this brief advocates for the promotion of Green Tech Manufacturing Partnerships (GTMPs) to foster local mineral processing, technology transfer, and capacity building. This includes expanding the membership of The Critical Minerals Mapping Initiative, Mineral Security Partnership (MSP), and Sustainable Critical Minerals Alliance (SCMA) to include the African nations for equitable participation in global value chains. To navigate competitive dynamics in developing Africa’s critical mineral processing capabilities, the brief proposes alternate scenarios and recommended modalities, thereby addressing geopolitical challenges. It also emphasises G20’s role in promoting responsible supply chains by supporting Africa’s adherence to environmental, social and governance (ESG) standards, backed by regulatory and fiscal mechanisms. Further, through G7’s Partnership for Global Infrastructure and Investment (PGII), the G20 can facilitate essential public and private investments to enhance mineral processing and transportation capabilities.
The brief proposes an effort vs impact framework to guide G20’s priorities, driving industrialisation and fostering just and equitable value distribution and sustainable practices, enabling Africa’s transition from being a raw material exporter to a key player in critical mineral value addition.