Reserves of Critical Minerals in Africa – a Crucial Source of its Economic Growth

Critical minerals are essential naturally occurring elements crucial for modern technology and industries. These minerals play a vital role in the production of advanced technological devices like mobile phones, computers, semiconductors, fiber-optic cables, and various other applications. They are particularly significant in the manufacturing of eco-friendly products such as electric vehicles, wind turbines, solar panels, rechargeable batteries, and other low-emission technologies. Countries worldwide depend on a variety of critical minerals like cobalt, copper, lithium, nickel, and rare earth elements based on their specific industrial needs and priorities.

The global critical minerals market was valued at US$ 320 billion in 2022 and is expected to reach US$ 494.23 billion by 2030, increasing at a 5.69% Compound Annual Growth Rate (CAGR) between 2023 and 2030. In recent years, the market has witnessed significant growth (Kings Research).

The global critical minerals market was valued at US$ 320 billion in 2022 and is expected to reach US$ 494.23 billion by 2030, increasing at a 5.69% Compound Annual Growth Rate (CAGR) between 2023 and 2030. In recent years, the market has witnessed significant growth (Kings Research). The trade of critical minerals has also increased over the last two decades.

The trade of critical minerals has also increased over the last two decades.

The import value of critical materials grew from US$ 212 billion in 2017 to US$ 378 billion in 2022, driven by a significant rise in Platinum Group Metals (PGM) such as rhodium, iridium, ruthenium and osmium in the global market. In 2022, China was the world’s top importer of critical minerals, accounting for 33% of the global total critical minerals trade value, followed by the European Union at 16% and Japan and the United States at 11% (World Trade Organization).

The whole picture depicts a global push for a green energy transition that has accelerated in line with rising environmental and social concerns. With these changes, the demand for critical minerals from Africa, which owns a sizable share of global reserves, has also increased.

Africa has abundant natural resources, including arable land, water, fossil fuels, natural gas, minerals, and more. The continent holds a substantial portion of the world’s natural resources, both renewable and non-renewable, with natural capital contributing significantly to overall wealth in most African countries. Additionally, Africa stands as a key reservoir of critical minerals crucial for modern technologies, especially those propelling the clean energy revolution. These critical minerals include cobalt, copper, bauxite, chrome, high-purity iron ore, platinum group metals, lithium, rare earth metals, and others.