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The African Mineral
Processing Opportunity

A Resource-Rich Continent
with Untapped Potential

Africa holds 30% of the world’s known
mineral reserves, including 48% of global
manganese, 55% of cobalt, 40% of gold, and
25% of bauxite. Yet, despite this vast
endowment, Africa exports the majority of
its minerals in raw form, leaving much of the
value-creation process to other regions.

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Africa’s
Processing Deficit
and Trade
Imbalance

Despite its rich mineral reserves,
Africa lacks significant metals
processing capacity.

70%

Share of the continent’s mineral export value coming from unprocessed raw materials.

~15m
MT

Sub-Saharan Africa’s steel processing capacity. It is nine times lower than India’s, despite comparable population sizes (1.1 billion vs. 1.4 billion).

USD 30 billion
(2023)

Contribution of the reliance on raw mineral exports and processed metal imports to the African trade deficit.

Barriers to
local processing

Africa's limited metals processing capabilities can be attributed to three major challenges.

1

2

3

Raw Material
Predation

Global mining giants
extract Africa’s minerals
but export them unprocessed
at low prices, shifting profits abroad.

Lack of Integrated
African Champions

No major African player
controls the full mining-to-
processing chain, with FDI
prioritising extraction over value addition.

Weak Policy
Frameworks

A lack of supportive policies,
high trade barriers, and poor
regional integration stifle
Africa’s mineral processing potential.

Why African can
Lead in Metals
Processing

Metals processing costs are
primarily driven by minerals, power,
and labor—three areas where Africa
holds a competitive edge.

Strong mineral

reserves to supply
processing facilities.

Affordable power

Industrial electricity costs in Africa
(6 USDc/kWh) are significantly lower
than in China (9 USDc/kWh), the US
(15 USDc/kWh), and Europe (21 USDc/kWh).

Abundant and cost-competitive labor force

The Future is in Value Addition

Investing in Africa’s metals processing ecosystem is not just an economic necessity—it is a strategic imperative. The continent has the resources, the cost advantages, and the demand to support a thriving, integrated mining and metals industry.

Now is the time to unlock Africa’s full mineral potential and transform it into a powerhouse of industrial value creation.

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