Summary
- As the gathering climate crisis drives greater demand for the critical minerals used in key green technologies, such as electric vehicles and solar panels, new commercial opportunities are emerging for certain African countries.
- However, African plans to gain real developmental benefits from these resources are constrained by a range of structural obstacles, including electricity gaps, inflated risk perception, information asymmetry and so forth. There are also geopolitical pressures emanating from tensions between China (a major stakeholder in key African mining sectors) and the US, further complicated by the ambitions of other global powers.
- Zero-sum policies among external partners are increasingly dictating the continent’s options even as African countries try to move up the value chain.
- This policy insight compares Chinese and G7 engagement with Africa on critical minerals.
- It highlights the different impacts of this engagement on African ambitions to increase the value of their exports.
- Finally, it provides suggestions on how resource-rich African countries can navigate these pressures while maximising developmental outcomes.
