Africa is not just rich in culture, history, and human potential, it is also endowed with some of the most valuable mineral resources on Earth. From lithium fields to cobalt mines, and gold-rich terrains, the continent’s subsoil powers everything from smartphones to solar panels in different countries around the world. These resources are central to the global green transition and technological advancement.
Yet, while the world reaps the rewards of Africa’s mineral wealth, the full benefits rarely return to those living closest to the source. The pressing question remains: who truly profits from this abundance, and how can African nations leverage their natural assets to fuel inclusive growth and long-term prosperity?
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Zimbabwe’s Lithium: A Boon or a Bane?
Zimbabwe has emerged as a significant player in the global lithium market, with production increasing annually since 2020. In 2024, lithium mine output reached a new high of 22,000 metric tonnes, up nearly 50 per cent from the previous year. This surge is largely attributed to substantial investments from Chinese firms, including Zhejiang Huayou Cobalt and Sinomine Resource Group, which have collectively invested more than $1 billion in Zimbabwe’s lithium sector.
Notably, Sinomine’s $300 million spodumene processing plant at the Bikita mine exemplifies this investment trend. While these developments have positioned Zimbabwe as a potential global lithium powerhouse, concerns persist regarding the equitable distribution of benefits. The government’s initial mandate for local lithium processing aimed to promote domestic value addition. However, a dramatic 80 per cent drop in global lithium prices—driven by overproduction and weakened demand—prompted a policy reversal, allowing case-by-case exemptions from the processing requirement. This shift underscores the precariousness of reliance on foreign investment and global market forces.
The DRC’s Cobalt: Wealth Amidst Woes
The DRC is home to more than 80 per cent of the world’s cobalt production—a metal essential for electric vehicle batteries and other technologies. In 2024, cobalt output was projected to hit 244 kilotonnes, marking a 38.9 per cent increase from the previous year.
However, this vast mineral wealth has not translated into broad prosperity. Eastern DRC remains plagued by conflict, with rebel groups competing for control of mineral-rich territories. The involvement of foreign entities, such as Erik Prince’s agreement to help the DRC secure and tax its mineral resources, adds further complexity. While such deals are framed as efforts to combat smuggling and corruption, they also raise questions about sovereignty and who truly reaps the rewards.
Sudan’s Gold: A Glittering Façade
Sudan ranks among Africa’s top gold producers, with significant deposits in regions such as Darfur and the Nuba Mountains. However, this wealth has become both a blessing and a curse. The gold trade is closely linked to the financing of armed groups, fuelling ongoing conflict and undermining peace efforts. In the absence of transparent governance, illicit mining and smuggling deprive the state of vital revenue that could otherwise be channelled into development and stability.
Geopolitical Chess: External Powers and African Resources
The global race for Africa’s minerals has intensified geopolitical rivalries. China’s assertive investment strategy—particularly in Zimbabwe and the DRC—has established it as a dominant force on the continent. Meanwhile, Western powers, recognising the strategic value of critical minerals, have stepped up efforts to counter China’s influence. The U.S., for example, has initiated new partnerships to secure access to key resources, evidenced by renewed diplomatic and economic engagements in the DRC.
These dynamics often marginalise local voices. With decisions driven more by external strategic interests than by African developmental priorities, the result is continued dependency and missed opportunities for inclusive growth.
How African Citizens Are Benefiting (or Not)
Despite the immense value generated by Africa’s natural resources, most citizens do not benefit proportionately. Sub-Saharan Africa’s mineral wealth could contribute up to 5–10 per cent of GDP annually, yet only a small portion of this revenue finds its way into public coffers or social services.
In the DRC, for instance, cobalt revenues run into the billions, but communities near mining zones remain deeply impoverished. The United Nations estimates that 73.5 per cent of the population lives below the poverty line. In regions like Katanga, unsafe labour conditions and child labour persist, despite the industry’s lucrative returns.
Zimbabwe’s lithium boom has similarly failed to yield widespread benefits. While foreign investment has surged, public infrastructure, healthcare, and education remain underfunded. Critics argue that the government has yet to develop the mechanisms or institutions necessary to convert mining revenue into meaningful public investment.
A Missed Opportunity: The Case for Equitable Resource Sharing
Africa’s mineral wealth holds immense promise for socioeconomic transformation—but only if managed equitably. Botswana is often cited as a model for how resource wealth can be harnessed for national development. Its transparent governance and reinvestment of diamond revenues into education, healthcare, and infrastructure have delivered sustained growth and reduced reliance on foreign aid.
By contrast, in countries like the DRC and Zimbabwe, corruption, lack of transparency, and foreign exploitation have stymied progress. Investment in local processing industries could retain more value domestically and provide employment opportunities. Equally, public sector reforms and enhanced accountability could ensure that resource revenues are directed toward community development rather than elite enrichment.
Towards Equitable Resource Management
Addressing the contradictions of Africa’s resource wealth demands a comprehensive approach. Transparent, accountable governance is essential. Revenue management systems must be put in place to ensure wealth is more evenly distributed and used for the public good.
Local empowerment is also critical. Supporting domestic processing and manufacturing industries can reduce dependency on raw exports, create jobs, and increase value retention. Moreover, actively involving communities in decision-making can ensure their needs are prioritised and that development is inclusive.
Finally, economic diversification is key. Over-reliance on a single resource exposes countries to market volatility and instability. Building resilience through diversified economies will help secure long-term, balanced growth.
Africa’s resource endowment presents a unique opportunity to build a prosperous future. But that future can only be realised by shifting from externally dictated exploitation to an internally driven, people-centred development model—one that prioritises transparency, inclusivity, and sustainability.
