Africa must take charge of the transformation of its mining resources if it is not to be relegated to the status of a mere supplier of raw materials, warned the leaders and experts gathered at the Investing in African Mining Indaba.
Deglobalisation and growing trade tensions between the major powers, particularly the United States, are threatening raw materials exports. African leaders are therefore advocating a transition to local processing of minerals, as a guarantee of economic control and prosperity.
At the "Securing the future of African mining today" forum, a number of speakers stressed the need to transform natural resources on site. "We need to invest in local processing, because this is a business decision, not a political one," said Gwede Mantashe, South Africa's Minister of Mineral and Petroleum Resources.
The South African mining industry, which accounted for 6% of GDP in 2024 compared with 6.3% in 2023, is struggling to hold its own in an increasingly competitive environment. It exported goods worth almost 800 billion rand ($42 billion), or 45% of the country's total exports. Yet obstacles persist, including high costs and unreliable energy infrastructure.
Mantashe called on investors to review their strategy and consider the long-term benefits of local processing, despite the challenges. "If it costs less to export raw materials than to process them here, the market will make that decision. We need to reverse this trend," he said.
Marit Kitaw, from the African Minerals Development Centre in Addis Ababa, stressed the urgent need for action: "Africa must take ownership of its mineral wealth by transforming it locally. It's not just about economic growth, it's about safeguarding our future in an unpredictable global trading environment.
African leaders now see local value-adding not only as a growth strategy, but also as a question of survival in the face of changing global supply chains. This transformation could enable Africa to emancipate itself from its role as a simple supplier of raw materials and develop a more industrialised economy.
The South African Minerals Council believes that reducing costs and supporting primary mining exploration could encourage local value extraction. "There is a significant opportunity to unlock the country's mineral potential and contribute to the global transition to a prosperous, low-carbon future," said Hugo Pienaar, Chief Economist of the Council.
Minister Mantashe announced key reforms, including a new mining licensing system to speed up approvals and attract investment. "Investors, make your money here", he urged. "When you make a profit, reinvest in our communities by building schools, clinics and infrastructure."
South Africa has first-rate mining resources:
- 73% of platinum group metals,
- 30% of the world's palladium,
- 7.2 million tonnes of manganese a year, or 36% of world production.
While gold is in decline (96 tonnes produced in 2023, employing 90,000 people), other strategic minerals, such as lithium and cobalt, offer new prospects.
Samaila Zubairu, CEO of the Africa Finance Corporation, calls for more local processing: "Instead of shipping raw bauxite, we need to focus on processing it into alumina and aluminium right here in Africa.
Martina Biene, President of Volkswagen South Africa, highlighted the benefits for the automotive industry: "A robust recovery process stabilises raw material costs and stimulates innovation in sectors such as car manufacturing.
The production of electric vehicles, which requires minerals such as steel, aluminium, copper, lithium, cobalt and nickel, could be boosted by more reliable local sourcing.
The debate around the local transformation of Africa's mineral resources is more pressing than ever. Faced with a changing global economic environment and growing trade tensions, Africa has the opportunity to redefine its role on the international stage. The continent can free itself from its dependence on exports of raw materials by relying on a locally processed mineral industry, a guarantee of sustainable and inclusive growth.