Africa is uniquely positioned to become a central player in the global critical mineral value chain as worldwide demand is expected to more than double by 2040, according to the latest Boston Consulting Group’s (BCG) report, which reveals Africa’s unique opportunity to transform from raw material supplier to strategic industrial partner.
The report, which is its Africa Series, titled: “Africa’s Critical Minerals Moment: A Strategic Blueprint for Sovereign, Sustainable, and Scalable Growth,” outlines how African nations can leverage their vast mineral endowments to move beyond traditional extraction models and capture significantly greater value across the entire mining-to-manufacturing value chain.
Analysing the report, Managing Director and Partner at BCG Johannesburg, Tycho Moencks, said: “Africa is no longer on the sidelines of the global minerals race – it’s increasingly positioned at the centre. With the world’s energy transition accelerating and nations scrambling to secure resilient supply chains, Africa has what the world needs. More importantly, for the first time in generations, the continent has the leverage to shape – not just serve – the next global industrial era.”
The report identifies Africa as home to some of the world’s largest production hubs for cobalt, copper, platinum group metals, and manganese, alongside vast undeveloped reserves of lithium and rare earth elements.
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According to the report, critical minerals, which are defined as materials strategically essential to modern energy systems and digital technologies while subject to growing supply-demand imbalances including high levels of geographical concentration in a few countries, are becoming the foundation of 21st -century economic power. The report added that the materials would enable everything from electric vehicles and solar panels to smartphones and data centres, making secure access becomes a matter of national strategic importance.
From the economic opportunity standpoint, BCG’s analysis reveals that every $1billion invested in mining and processing activities can create approximately 3,000 to 6,000 direct, indirect, and induced jobs while contributing $210 to $280 million annually to GDP in steady state. It further explained that such investments would generate $70-100 million in annual incremental government revenue and drive $100 million in regional infrastructure development.
Project Leader at BCG, Lindokuhle Shongwe, said: “The transformation potential extends far beyond traditional mining economics. We’re talking about a fundamental shift from resource extraction to industrial transformation – one that can create high-quality jobs, build technological capabilities, and position African nations as essential partners in global clean energy and digital infrastructure development.”
“Given its mineral diversity and existing industrial infrastructure South Africa emerges as particularly well-positioned to capitalise on this transformation. As the continent’s leader in critical mineral endowments, its strategic advantage extends beyond extraction to encompass significant processing capabilities and established mining expertise. The country’s world-leading position in platinum group metals, combined with substantial reserves of manganese, chromium, and vanadium, positions it as a potential anchor for regional value chains and a natural hub for attracting downstream manufacturing investments in battery technologies, renewable energy components, and advanced materials processing,” the report said.
The report outlines three strategic levers for unlocking Africa’s full value chain advantage to include: First, attracting investment through credibility and consistency requires streamlined regulations, accelerated permitting processes, and embedded Environmental, Social, and Governance (ESG) standards. Namibia exemplifies this approach through policy reforms and ESG commitments that have attracted significant international partnerships.
Second, building regional value chains through intra-African collaboration enables distributed industrial ecosystems where countries specialise across extraction, processing, and manufacturing to maximise shared value. The Democratic Republic of Congo and Zambia are pioneering this approach through their Battery Minerals Corridor initiative, co-developing infrastructure and aligning policies to link cobalt and copper extraction to regional processing capabilities.
Third, forging global alliances and catalysing ecosystem development allows African nations to secure long-term demand while accessing concessional financing, technology transfer, and technical expertise. Morocco has successfully positioned itself as a global hub for phosphate-based battery materials through strategic partnerships spanning the European Union and China.
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According to the report, the timing is particularly advantageous for Africa. “Unlike regions constrained by legacy infrastructure, African nations can leapfrog by building modern, transparent, and digitally enabled value chains from the ground up. Rwanda’s pioneering digital traceability systems for tantalum exports demonstrates early momentum in this direction,” the report said.
The report emphasises though that success requires moving beyond fragmented national efforts toward coordinated continental action.
“With the African Continental Free Trade Area (AfCFTA) providing a framework for regional integration and major infrastructure projects like the Lobito Corridor connecting fragmented markets, the foundation for transformation is already taking shape. The global context reinforces the urgency of action,” the report further said.