Energy
Africa mineral wealth faces local processing hurdles
A recent International Energy Agency report reveals that Africa holds vast clean energy mineral reserves but captures less than one percent of processing value.
Key points
- Africa holds over 30 percent of global mineral reserves vital for clean energy technologies.
- Exploration spending for transition minerals grew from 3 percent in 2015 to 25 percent in 2024.
- Refining investments lag behind, with African projects facing high capital and energy costs.
What happened
According to a report by the International Energy Agency (IEA), Africa possesses over 30 percent of the world's mineral reserves essential for clean energy technologies. Despite this abundance, exploration spending averaged $470 million annually between 2015 and 2024, causing the continent's global share of exploration to drop from 12.6 percent to under 9 percent, ESI Africa reported.
While transition minerals like lithium, nickel, and rare earth elements saw exploration spending rise from 3 percent in 2015 to 25 percent in 2024, downstream processing remains limited. The continent captures less than 1 percent of the value from processing and manufacturing its minerals.
Why it matters
Mining investment in key energy minerals increased by nearly 85 percent between 2015 and 2024 to reach $4 billion. However, refining contributions reached only $16 billion in 2024 compared to a total mining output valued at $50 billion.
African governments are increasingly introducing beneficiation policies, such as tax incentives, local content requirements, and export restrictions. Yet, the IEA warns that export bans alone are insufficient without reliable power, supporting infrastructure, and transparent governance. Furthermore, African refining projects face energy costs that are roughly 25 percent higher than in Latin America.
What comes next
Realising the potential of the IEA's High Potential Case scenario requires targeted policy implementation and infrastructure investment. Developing human capital through technical training, education, and research partnerships is equally crucial for sustainable industrial growth across the continent.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
CEII follows developments across the world’s energy system and connects them to the data behind them.
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Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
