Chinas role in Africas critical minerals landscape: challenges and key opportunities

The document analyzes China's dominance in Africa's critical minerals landscape, highlighting its role as a primary investor and buyer. It argues that while Africa's reserves are vital for the global energy transition, the current model of exporting raw materials without local processing limits socioeconomic benefits and risks environmental degradation. The brief recommends that African governments pursue strategic partnerships, invest in research and development, and build energy infrastructure to move up the value chain, while urging international partners to support technology transfer and local capacity building.

• China maintains a dominant position in Africa's mining sector, serving as the continent's largest trading partner and foreign direct investor. In 2022, trade volume between China and Africa reached nearly USD 300 billion, which is three times the volume of trade between the US and African countries.
• Chinese investment is heavily concentrated in specific critical minerals and regions. This includes USD 4.5 billion invested in lithium mines in Mali, Zimbabwe, and Namibia, and control over 15 of the 17 cobalt mining operations in the Democratic Republic of Congo (DRC).
• Chinese enterprises possess competitive advantages in securing mining contracts through government subsidies, a track record of delivering infrastructure, and the 'resource-for-infrastructure' swap model (the 'Angola model'). For example, a Chinese consortium outbid an Australian competitor for concessions in Guinea by committing to build railways and shipping routes.
• The current trade relationship is characterized by an acute imbalance where Africa exports raw minerals and imports finished Chinese goods. This model provides little value addition, as Chinese investments primarily focus on export-oriented projects to feed plants in China, limiting local job creation and skill transfers.
• African nations face significant internal barriers to mineral processing, most notably electricity shortages. In Zimbabwe, power deficits have cost manufacturers hundreds of millions of dollars and hindered the processing of lithium.
• While some African governments have implemented mineral export bans to encourage domestic processing, such as Zimbabwe's ban on lithium ore, these measures are insufficient without accompanying investments in power infrastructure and trained labor.
• Global geopolitical competition between China, the US, and the EU provides Africa with an opportunity to negotiate better terms. Initiatives like the US-led Minerals Security Partnership (MSP) and the EU's Critical Raw Materials Act (CRMA) indicate a Western desire to diversify supply chains away from China.

APA

Benabdallah, L. (2024). Chinas role in Africas critical minerals landscape: challenges and key opportunities. Africa Policy Research Institute. https://afripoli.org/chinas-role-in-africas-critical-minerals-landscape-challenges-and-key-opportunities

Chicago

Benabdallah, Lina. Chinas role in Africas critical minerals landscape: challenges and key opportunities. Africa Policy Research Institute, 2024. https://afripoli.org/chinas-role-in-africas-critical-minerals-landscape-challenges-and-key-opportunities.

Wikipedia

{{cite report |last1=Benabdallah |first1=Lina |title=Chinas role in Africas critical minerals landscape: challenges and key opportunities |publisher=Africa Policy Research Institute |date=6 September 2024 |url=https://afripoli.org/chinas-role-in-africas-critical-minerals-landscape-challenges-and-key-opportunities |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{benabdallah2024chinas, author = {Benabdallah, Lina}, title = {{Chinas role in Africas critical minerals landscape: challenges and key opportunities}}, institution = {Africa Policy Research Institute}, year = {2024}, month = sep, url = {https://afripoli.org/chinas-role-in-africas-critical-minerals-landscape-challenges-and-key-opportunities}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }