The transition from fossil fuels to clean energy, essential for meeting Global Climate Goals, is contingent upon critical minerals. Key critical minerals like copper, lithium, nickel, and cobalt are essential components in numerous rapidly advancing clean energy technologies, including wind turbines, solar panels, and electric vehicles.

Later this year, in November, governments from all corners of the African continent; international presidential and ministerial delegations; provincial governments, global finance, and mining, manufacturing and technology firms, will convene in Cape Town for the second Critical Minerals summit.

The Event will take place amid intensive conversations about these minerals and how they can benefit the continent instead of becoming a curse. Civil society organizations on the continent remain sceptical about the benefits of these minerals if the continent’s governance and leadership are not keenly exploring how communities benefit from this green wealth.

In the heart of South Africa’s Johannesburg, Africa CSOs, Academia, and policymakers, industrial leaders, international partners convened in a two-day (21^st -22 August, 2024) consultative forum to debate on critical minerals and Just Transition. Participants delved into how to evade the curse of Critical minerals and how the latter can drive the net zero transition and NDC implementation in Africa. The forum purposed to foster rights-based, environmentally-conscious and ecologically-just extraction of critical minerals that benefit all stakeholders.

Though African countries have vast reserves as UNCTAD indicates, their extraction and the entire value chain of critical minerals were described as not fully benefitting African countries and communities in particular. A clarion call for African countries to tap into their comparative advantages in critical minerals and natural resources to create viable regional industrial conglomerates, fast track energy access is important was made.

Dr. Mithika Mwenda, Executive Director of the Pan African Climate Justice Alliance, emphasized the importance of adding value to African mineral resources to increase the continent’s returns in the global markets. He stated that this should be a guiding principle for the continent. “We cannot continue to be net exporters of raw mineral materials. For this to happen, as African nations we must be holistic both in our economic outlook and inclusive in our transitional agenda. Our transitional agenda must be broader and whole economy based as opposed to the currently conscripted in negotiations”, stressed Dr Mithika.

The UN Trade and Development Organization (UNCTAD) indicates that Africa possesses vast deposits reserve of critical minerals that can be utilized for global energy transition, such as cobalt, copper and lithium, which can power a sustainable energy future.

According to UNCTAD, African countries only collect about 40% of the potential revenue from their natural resources. As of 2023, statistics showed that Africa had 48% of the global share of cobalt, 40% of manganese, and 22% of graphite.

Leadership was highlighted as an issue that may hamper the development of critical minerals in Africa. Dr James Murombedzi,  African Climate Policy Center at the United Nations Economic Commission for Africa, highlighted that currently, technologies are available to produce a similar amount of heat without combustion but with electromagnetism. He said that instead of using fossil fuels capturing renewable energy from the Sun, wind and so many other sources should serve as alternatives.

In this forum, Dr James reminded participants that countries that have the highest emissions also have the highest GDP right which is contrary to African countries. He reminded them that the fossil fuels available in Africa were mostly extracted for use outside of Africa and were not evenly distributed across the continent. In the face of change, he said that the electromagnetic revolution source of clean energy is available but not fully utilized. He emphasized that these resources are available to almost everyone though there are still challenges.

Mandla Ncube who represented Dr.Kita, the interim director of the African Minerals Development Center brought in the challenges of mining projects that do not involve the benefits of the communities while the change sought can only be possible when communities especially women are on top of the process.

He pointed out that local communities often have no input in the extraction of these minerals and their concerns are not taken into account. He also criticized the employment practices in the mining sector, describing them as modern-day slavery, and highlighted the violation of constitutional and legal rights by mining companies in South Africa.

He emphasized the importance of giving local communities a voice in the extraction of resources and ensuring that profits stay within the local area. Mandla discussed the challenges faced by communities in their area, particularly issues related to poverty, prostitution, and the lack of decision-making power.

“We need to ensure that these folks who have no access to clean water, to energy, to anything. What the environment has been polluted can speak for itself. The impact of changing the situation can be changed by these people impacted. We can’t be here and think we are there”.

As mentioned by Dr Murombedzi, Mandla said that the global finance architecture is geared to ensure that you take advantage of value addition. He said that Africa should be at the level of industrialization itself but until now the continent

“You should have already become a certain level of capacity should have reached a certain level of capacity industrially., and this is why you realize we will remain the source of minerals and not the source of finished goods until we acquire the industrial capacity that is required for us to participate,” said Mandla.

How Can Critical Minerals Bless Africa?

The International Monetary Fund IMF, affirms that Africa remains the centre for the future of Critical minerals globally. The institution lays out an example of how raw bauxite, for instance, fetches a modest $65 per ton, but when processed into aluminium it commands a hefty $2,335 per ton, in end-2023 prices.

IMF, in its statement, does not differ from the views of participants of the consultative forum on Critical minerals advanced that Africa should embrace the value addition of minerals before they are exported to northern countries. Pointing an example of the thousand trucks a day that carry unprocessed lithium from Zimbabwe to ports for shipping to China, the IMF affirms that this show that local processing options for critical minerals are too often limited.

The IMF recommends that developing countries establish local processing industries to increase value-added production, create more high-skilled jobs, and generate higher tax revenues. This can also help reduce poverty and promote sustainable development. By diversifying their economies and moving up the value chain, countries can reduce their vulnerability to fluctuating commodity prices and better shield themselves from exchange rate volatility and foreign currency reserve pressures.

This forum on Critical minerals aims to develop policy recommendations to support the sustainable development of critical minerals and promote a fair transition to clean energy. It will also create a strategic action plan outlining the necessary steps to implement these recommendations. A pan-African Movement on Critical Minerals was established due to the high demand for these minerals and intensive mining. This forum will strengthen partnerships among stakeholders and raise awareness and engagement on the issues of critical minerals and the just energy transition.