Minerals and strategic metals in Sub Saharan Africa's subsoil

THE MAIN MINERAL RESOURCES OF SUB SAHARAN AFRICA
 

The share of available reserves out of the world total is extremely important for many minerals and metals in each African country: among the main ones, about a quarter of the world's bauxite is in Guinea underground; well over half of the cobalt in the Democratic Republic of Congo, where there is also over a tenth of lithium; South Africa holds about a third of manganese, 89% of platinum and 15% of titanium, as well as approx. a quarter of vermiculite; Botswana holds 40% of diamonds for industrial use.

THE IMPORTANCE OF RARE EARTHS AND THE GROWTH OF GLOBAL DEMAND

Within the next five years, global demand for rare earths will quadruple from current levels and China remains the clear leader in refining, processing and manufacturing components based on these new strategic materials. Both EU countries and the US are trying to limit Chinese dependence with investments in different parts of the world, including the African continent.

By 2030, at least eight new major mines will be fully operational in Africa, enabling the continent to meet 10% of the world's demands.
The main mining companies involved in the extraction and initial processing of minerals are from the western part of the world, mainly Australian, Canadian, US, British (as well as Japanese and Korean). Often, however, investments in mining processes and their expansion are made by international importing companies, which thus secure supplies of raw materials.

THE DEVELOPMENT OF THE MINING INDUSTRY IN AFRICA
 

The Centre for African Natural Resources and the African Development Bank have on several occasions emphasized the importance of optimizing on site the benefits provided by the continent's rich subsoil, becoming active players in the global supply chain by carrying out more industrial processes related to the transformation, processing and production of end products.

Also relevant is the development of connections, which no longer refer to local realities, but can cover ever larger areas, supporting both intra-area AfCFTA and international trade.

Furthermore, it is important to increase higher education centers, which will not only provide a wide range of highly specialized figures in all phases of research, processing and production, but also equip Africa with poles of excellence in the entire value chain of new minerals.

THE AFRICAN UNITS ACCOUNT: THE VIRTUAL CURRENCY LINKED TO MINERALS
 

In January 2025, during the African Energy Summit, the African Development Bank proposed the creation of a virtual currency (like the Gold Standard), linked to the minerals used in high-tech production, to limit currency risks and incentivize investment, particularly in green finance.

This non-circulating currency, the African Units Account, tied to a basket of minerals produced by the various African countries (cobalt, copper, lithium, manganese and rare earths) would become an alternative to dependence on the dollar and the euro and would guarantee greater exchange rate stability, generally volatile with the local currencies of the participating countries; it would also encourage foreign investment, which is still low compared to other areas of the world.

THE FUTURE OF THE MINING SECTOR IN AFRICA
 

The process of industrial development on the African continent would allow for more value-added production steps to be carried out locally, fostering more stable and effective economic growth in a large number of countries. A more solid production structure would be created, also accompanied by the construction of logistics and transport facilities, guaranteeing a marked improvement in employment, training and education, and offering important opportunities on site.