By: ESI Africa

Africa’s critical minerals are a definite pathway to the continent’s industrial development, social upliftment and economic prosperity.

This was the key message conveyed by Kanayo Awani, Executive Vice President, Intra African Trade and Export Development Bank, at African Export-Import Bank (Afreximbank), to delegates at the recently concluded Investing in African Mining Indaba 2025 in Cape Town, South Africa.

Delivering a speech on the theme Redefining Critical Minerals – Critical for Who? , Awani envisioned “a future where Africa’s mineral wealth empowers its people and drives sustainable development.”

Africa still not benefitting from its critical minerals wealth

She noted that while the continent abounded in mineral resources and accounted for about 30% of all global mineral reserves, it had not benefitted from those resources due to inadequate infrastructure, unclear national policy directions, environmental and social challenges, poor investment decisions and lack of financing.

“The paradox lies in the fact that whilst our continent is a treasure trove of resources, the benefits of these resources often flow outside our borders, leaving local communities and economies deprived,” she said.

“For a continent that is endowed with such vast quantities of natural resources, the state of development across its length and breadth remains a puzzle.”

Lack of beneficiation of critical minerals need to be addressed

Awani noted that many African countries currently extract critical minerals and export raw materials without substantial value addition, leaving the continent lingering at the lower rungs of global value chains and constraining economic benefits, arguing that, to fully tap into the new commercial opportunity, Africa needed to significantly increase investments in value addition and processing capacity so that countries could export finished or semi-finished goods, thereby enhancing the continent’s position in global value chains.

Options for Africa’s critical minerals sector

Awani said there is an opportunity to expand the scope of the AQACs to include testing and certification of minerals processed on the continent and reduce the need to certify African minerals overseas.

To enhance local participation, the Bank offers a local content mining services programme providing funding to the local mining sector service providers.

 Afreximbank , she said, recognises the critical role this programme plays in job creation, inclusive growth, boosting the domestic private sector, facilitating technology transfer and developing competitive local workforce.