The absence of coordinated economic strategies across African nations is proving a significant impediment to the continent’s ability to beneficiate its vast reserves of critical minerals. This consensus emerged from a high-level expert panel at the 2025 Manufacturing Indaba, held in Sandton, Johannesburg, on 16 July.
Despite Africa holding approximately 30% of the world’s known reserves of energy transition minerals—including lithium, cobalt, copper, and rare earth elements—most of these resources are still exported in raw form. This practice deprives the continent of substantial value addition, job creation, and industrial development opportunities. The prevailing view among experts is that fragmented national policies and a lack of cross-border collaboration are the principal barriers to change.
According to Tapiwa Samanga, CEO of the Production Technologies Association of South Africa, “We do not collaborate in research and development, nor do we co-develop products or establish joint value chains across borders. As a result, we lack market-ready outputs and fail to leverage our mineral potential.” Samanga further noted that there is a near absence of intra-African corporate partnerships—for instance, between firms in Zambia and South Africa—thus limiting economies of scale and shared technological advancement.
Dr Saul Levin, Executive Director of Trade and Industrial Policy Strategies (TIPS), who chaired the panel, highlighted that critical minerals are essential to high-growth global sectors such as renewable energy, electric vehicles, and digital technology. He cautioned that unless African nations invest in infrastructure and policy frameworks that support in-continent processing, they risk remaining mere suppliers of raw commodities. “Africa can become a pivotal player in global value chains if the right supply chain policies are implemented and collaboration is institutionalised,” he asserted.
Methano CEO Sereme Joel Malatji emphasised Africa’s unique positioning in the global energy transition due to its mineral wealth. However, he noted that without investment in refining and processing capabilities, this comparative advantage remains largely theoretical.
This perspective was echoed by JA Engineering CEO Matimba Mahange, who advocated for integrated industrial infrastructure, particularly in transport and energy, to facilitate regional beneficiation hubs. “Moving copper from Zambia to South Africa for processing requires transnational rail and power infrastructure. National plans should not stop at borders,” he remarked, proposing a regional development strategy akin to a ‘United States of Africa’.
Mahange also argued that South Africa’s National Development Plan should expand to incorporate Southern African regional goals. He warned that the absence of alignment between higher education institutions and industrial policy would render beneficiation strategies ineffective. “Without skills tailored to our mineral profile, our economic plans are merely aspirational,” he said.
Botswana Exporters & Manufacturers Association CEO Mmantlha Sankoloba underlined the need for a coherent regional business plan. She criticised the tendency to export minerals in their raw form, arguing that it denies communities the benefits of local value addition. While the African Continental Free Trade Area (AfCFTA) offers a theoretical framework for such integration, Sankoloba questioned the political will to actualise its potential. “The concept is ideal, but implementation remains limited. Africa has yet to act collectively on economic matters,” she stated.
The lack of unified engagement also weakens Africa’s global negotiating position. Samanga pointed out that 12 of the 16 Southern African Development Community (SADC) member states possess critical minerals integral to battery and electric vehicle production, yet operate in isolation. “Instead of forging bilateral deals with external actors, we should be presenting a united African agenda,” he argued.
However, even with improved collaboration, another major constraint lies in the ownership structure of mining assets. “Most mining operations in Africa are not owned by Africans,” Samanga observed. This foreign dominance in resource extraction complicates efforts to establish beneficiation industries. He concluded by advocating for “patriotic investment” that prioritises long-term value retention on the continent.
The panel’s discussion highlighted the urgent need for a paradigm shift—from competitive nationalism to cooperative regionalism—if Africa is to transform from a supplier of raw materials into a manufacturing powerhouse. A deliberate, well-resourced and strategically coordinated beneficiation agenda could unlock industrial growth, economic diversification, and a more equitable distribution of mineral wealth across the continent.
