Summary:
- As global demand for critical minerals rises, African nations can harness their mineral wealth to drive sustainable development. However, effective rent capture, strong governance and mitigation of socio-environmental risks are essential to ensure these benefits are fully realised.
- Key interventions can enhance rent capture, invest resource revenues in green initiatives and promote fair revenue-sharing.
- Strengthening taxation frameworks with progressive instruments can ensure governments capture a fair share of increasing profitability.
- Resource rents should be reinvested in climate resilience, renewable energy and economic diversification to reduce dependency on raw mineral exports. Transparent governance, regional cooperation and industrial policies that promote local value addition can further boost long-term development.
- In addition, fair revenue-sharing mechanisms, participatory governance and environmental safeguards are essential to ensuring local communities benefit while mitigating socio-environmental risks. By adopting these measures, Africa can harness its green minerals to support both economic growth and the global energy transition, avoiding the pitfalls of past resource exploitation.
