African Currents

Why is Africa Prioritizing Value Addition and Revenue Growth in Its Critical Minerals Revolution?

Africa is ramping up efforts to plug revenue leakages and revitalize its extractive industries, with Kenya adopting the initiative through gold refining and granite processing plants set to launch by mid-2025. With the continent targeting a 9 percent share of global rare earth supply by 2029, experts see potential for economic benefits and jobs.
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Kenya can learn from other African countries like Ghana, South Africa, and Zimbabwe, which are leading the charge in limiting raw mineral exports to boost employment and improve local mineral processing capacity. To succeed, Kenya should improve its infrastructure, train its workforce, and enact policies that support these measures, Dr. Francis Omondi, an independent consultant, economist, and lecturer at the Department of Applied Economics, Kenyatta University, Nairobi, Kenya, told Sputnik Africa in an interview.

"Kenya can learn several valuable lessons from other African nations that have implemented raw mineral export restrictions. Countries like South Africa, Ghana, and Zimbabwe have taken steps to curb the export of raw minerals to stimulate local processing and job creation. So, a major lesson Kenya can draw is the importance of investing in the infrastructure and local processing facilities before implementing such restrictions. For example, Ghana has successfully promoted local gold processing through its refineries, enhancing both revenue retention and job creation. Additionally, South Africa's beneficiation policies for platinum group metals illustrate the need for policy alignments and local skills development to ensure such restrictions support the growth of local industries," Dr. Omondi says.

However, Dr. Takalani Madzivhandila, a senior lecturer in engineering metallurgy at the University of Johannesburg, South Africa, suggests a revolutionary framework for resource governance that will empower local communities and prioritize African interests, breaking free from colonial dependency. It will foster decentralized governance, ensuring fair resource distribution and increased community participation in decision-making.

"A radically decolonized approach to resource governance. It will reshape the continent's role in the global economy, fostering self-determination. One thing that I speak about mostly is local empowerment and economic independence. This approach will challenge the dependency structures rooted in the colonial era, which is extracting, by prioritizing African interests, knowledge systems, and equitable resource distribution. This is how it will look like: for example, community-centric governance and ownership that I spoke about, where you have a share the community owns. The resource governance would be decentralized with a greater involvement of local communities in decision-making," Dr. Madzivhandila remarks.

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