Digging Deeper: Embedding Minerals Sovereignty in Africa’s Mining Value Chains

This policy brief argues that Africa must transition from a reliance on international financial institutions to a model of economic, mineral, and energy sovereignty to unlock the full potential of its mining sector. The authors propose a 'resource leverage strategy' to exchange mineral access for technology transfer and local beneficiation, while advocating for the creation of independent African financial institutions and standardized resource reporting to reduce dependency on the Global North.

• Africa's mining sector is hindered by systemic financial losses and structural inequities. African governments lose between $450 million and $730 million annually in tax revenues due to tax avoidance and profit shifting, which primarily benefit multinational corporations and foreign investors.
• The continent faces severe energy poverty, with over 730 million people affected, largely because less than 2% of global renewable energy financing is directed toward Africa. This is compounded by a debt burden exceeding $1.15 trillion, with $163 billion spent on debt-servicing in 2024.
• Credit rating agencies (CRAs) contribute to economic dependency by using subjective methodologies that impose inflated risk premiums on African states, costing governments approximately $75 billion annually in borrowing costs. To counter this, the African Continental Ratings Agency (AfCRA) is set to launch in January 2025 to provide fairer ratings based on local economic conditions.
• A 'resource leverage strategy' is proposed to break the cycle of exporting raw materials. This involves renegotiating mining contracts to require meaningful investment in local beneficiation and manufacturing infrastructure in exchange for resource access, thereby securing technology transfer and reducing the dominance of monopolies (such as China's control over gallium and cobalt).
• The document highlights the necessity of asserting mineral sovereignty to prevent the Global North's decarbonization efforts from overshadowing Africa's own development. It notes that current global reserves of critical minerals may be insufficient for future demands, making Africa's resources a critical geopolitical tool.
• To strengthen capital markets and reduce reliance on external exchanges like the London Metal Exchange, the brief advocates for the adoption of the African Minerals and Energy Resources Classification and Management System (AMREC) and the Pan-African Resource Reporting Code (PARC). These frameworks are already being piloted or integrated in Namibia, Uganda, and Nigeria.

APA

JENTEL, L., & CLOETE, D. (2025). Digging Deeper: Embedding Minerals Sovereignty in Africa’s Mining Value Chains. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2025/02/PI-161-FP-Jentel-Cloete-CORRECTED-VERSION.pdf

Chicago

JENTEL, LETITIA, and DEON CLOETE. Digging Deeper: Embedding Minerals Sovereignty in Africa’s Mining Value Chains. South African Institute of International Affairs, 2025. https://saiia.org.za/wp-content/uploads/2025/02/PI-161-FP-Jentel-Cloete-CORRECTED-VERSION.pdf.

Wikipedia

{{cite report |last1=JENTEL |first1=LETITIA |last2=CLOETE |first2=DEON |title=Digging Deeper: Embedding Minerals Sovereignty in Africa’s Mining Value Chains |publisher=South African Institute of International Affairs |date=February 2025 |url=https://saiia.org.za/wp-content/uploads/2025/02/PI-161-FP-Jentel-Cloete-CORRECTED-VERSION.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{jentel2025digging, author = {JENTEL, LETITIA and CLOETE, DEON}, title = {{Digging Deeper: Embedding Minerals Sovereignty in Africa’s Mining Value Chains}}, institution = {South African Institute of International Affairs}, year = {2025}, month = feb, url = {https://saiia.org.za/wp-content/uploads/2025/02/PI-161-FP-Jentel-Cloete-CORRECTED-VERSION.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }