Answer

Introduction

Africa, endowed with some of the world’s richest reserves of critical minerals, has long supplied raw materials under imbalanced agreements with China, which controls nearly 80% of cobalt output in the Democratic Republic of Congo (DRC). The growing recognition of economic sovereignty, coupled with public pressure over unfulfilled infrastructure promises, is driving African nations to adopt strategic policy changes such as export bans on unprocessed minerals. 

Body

Strategic Policy Changes in African Countries Reshaping the Mineral Supply Chain

• Export bans on unprocessed minerals: African nations are using export restrictions to force local processing and capture more value domestically.
  Eg: Namibia has banned the export of unprocessed lithium and other critical minerals.
• Renegotiation of legacy contracts: Governments are revisiting old deals to increase their stake and ensure fairer terms in joint ventures.
  Eg: DRC raising its stake in a joint venture with Sinohydro & China Railway Group from 32% to 70%.
• Cancellation of exploitative acquisitions: African states are blocking questionable acquisitions to protect local interests and prevent monopolisation.
  Eg: Sale of Chemaf Resources to China’s Norin Mining was cancelled after opposition from DRC’s Gecamines.
• Mandatory local beneficiation requirements: Laws are increasingly requiring that mineral value addition occur domestically before export.
• Increased environmental scrutiny: Environmental bodies are rejecting harmful mining proposals to protect ecosystems and communities.
  Eg: Zimbabwe blocked Sunny Yi Feng’s coal mining permits in Hwange National Park.
• Community and NGO activism: Civil society movements are pressuring governments to demand transparency and fair benefit-sharing.
  Eg: “Congo Is Not for Sale coalition” exposed $132 million in tax losses from Chinese tax exemptions in 2024.
• Strategic diversification of partners: Seeking alternative investors to reduce reliance on Chinese capital and technology.
  Eg: Namibia exploring partnerships with EU-based companies for lithium processing.
  

Challenges in the Global Mineral Supply Chain & Dependency on China

• Concentration of mineral processing in China: China holds a dominant position in refining and processing critical minerals, creating strategic choke points in supply chains.
  Eg: 80% of DRC’s cobalt production is controlled by Chinese companies through the Sicomines deal.
• Unfulfilled infrastructure commitments: Several Chinese-backed mining deals promise public works but fail to deliver, weakening host country trust and public benefit.
• Economic vulnerability to price fluctuations: Linking mining deals to volatile market prices causes uncertainty and can stall infrastructure projects during downturns.
• Environmental degradation from mining: Weak environmental safeguards in Chinese-operated mines result in pollution, biodiversity loss, and public health hazards.
  Eg: Acid spill from Chinese-owned copper mine in Zambia polluted the Kafue River.
• Lack of skills transfer & technology sharing: Extraction projects often fail to build local expertise, leaving nations dependent on foreign technical know-how.
  Eg: Namibia’s lithium sector remains reliant on Chinese technology despite years of extraction.
• Opaque contracts and governance gaps: Non-transparent mining agreements limit accountability, enabling corruption and reducing public share of benefits.
• Political risks & elite capture: Mining wealth often gets captured by political elites, excluding communities from equitable benefits.

Suggestive Measures to Safeguard Equal Benefits & Infrastructure Commitments

• Adopt transparent contract frameworks: Mandate public disclosure of mining contracts and terms to ensure citizen oversight and reduce corruption.
  Eg: Use Extractive Industries Transparency Initiative (EITI) standards to publish all contracts.
• Strengthen beneficiation and local industry policies: Require domestic processing and value addition with legal penalties for non-compliance by foreign companies.
• Create mineral value stabilisation funds: Establish sovereign funds to stabilise revenues and shield infrastructure budgets from commodity price volatility.
• Establish independent regulatory bodies: Empower autonomous authorities to enforce mining laws, safety standards, and environmental norms effectively.
• Foster regional mineral alliances: Form regional blocs to negotiate better mining terms and coordinate critical mineral strategies.
• Encourage diversified foreign investment: Attract investors from multiple countries like EU, India, and Japan to balance influence and reduce dependence on a single source.
• Leverage judicial oversight & anti-corruption bodies: Strengthen court powers and watchdog agencies to review mining deals and curb illicit practices.
  

Conclusion

Africa’s recent policy shifts, from export bans to contract renegotiations, mark a move from being a passive raw material supplier to becoming an active value creator in the global mineral chain. Through transparent governance, local beneficiation, and diversified partnerships, African nations can reduce reliance on China, secure fair infrastructure deals, and enhance economic sovereignty, positioning the continent as a strategic hub in the green economy’s value-added supply chain.

DOWNLOAD PDF