Africa’s Crucial Role in Global Critical Mineral Supply Chains | PWOnlyIAS 2023

Why in NEWS: This article is based on an Livemint article Can Africa solve world’s critical mineral challenge? which explores the role of Africa in resolving the Critical Mineral Supply chain in the world.     

Role of Africa in ensuring Critical Mineral supply: 

The inclusion of the African Union into the G20 Grouping as its 21st member has given a new voice to the global south, providing an opportunity in ensuring global critical mineral security.

Africa’s Crucial Role in Global Critical Mineral Supply Chains: 

• Resources Availability: It has approximately 30% of the world’s reserves, including about 85% of manganese, 80% of platinum and chromium, 47% of cobalt, 21% of graphite, and 6% of copper.
  • Global Supply: Democratic Republic of the Congo (DRC) with its cobalt reserves and Zimbabwe’s lithium deposits play pivotal roles in the global supply chain.

• Reducing Supply Chain Dependence: AU offers an opportunity to reduce the world’s dependence on a single source, such as China, for critical mineral requirements.

Navigating Minefield: Africa’s Challenges in Securing Critical Mineral Supply Chains:

• Africa’s Resource Curse: It has hindered the development of domestic industries, leading to economic stagnation and political instability. 
  • For example, the DRC provides only 19% of its population with electricity.
• African High Indebtedness: It is holding back public spending on energy projects, while private investors are reluctant to invest because of the prevalence of fragile states.
• Resource Nationalism in Africa: Some African nations may adopt resource nationalist policies, seeking a larger share of mining profits or greater control over their resources.
• Security Concerns in Africa: Including risks associated with civil conflicts, terrorism, and theft of mineral resources.
• China taking the Lead in Africa: China has pursued a decades-long strategy to secure a reliable supply of critical minerals through its Belt and Road Initiative and other efforts.
• Environmental Degradation in Africa due to Mining: Mining operations can lead to extensive environmental degradation, including deforestation, soil erosion, and habitat destruction. 

Roadmap for Empowering Africa’s Critical Mineral Supply Chain:

• Promoting Regional Cooperation in Africa: Need to develop common standards for mining and processing and sharing information on investment opportunities. 
• Asia-Africa Growth Corridor (AAGC): The idea of AAGC emerged in the joint declaration issued by India and Japan in 2016 can be utilized to overcome challenges posed by lack of infrastructural development.
•  Value Addition and Local Processing in Africa: Encourage investments in mineral processing and refining facilities within African countries to add value to raw materials before export. 
• Align with Sustainable Development Goals (SDGs): To tackle poverty reduction, gender equality, and environmental sustainability.
•  Diversification of Trade Partners by African Countries: Forge partnerships with a diverse range of countries to reduce dependency on a single market and enhance resource security.

Conclusion

Africa role in the world’s supply of essential minerals will be extremely beneficial to the world. With its large reserve base and the African Union’s membership in the G20, there is a chance to improve resource security, advance sustainable development, and lessen reliance on a single source. 

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