Unlocking Africa’s potential: A call for a strategic raw materials approach
THE current rush for critical raw materials by developed countries and China in Africa reminds me of the Bourbon monarch in France, who briefly came back to power after Napoleon’s rule from 1815 to 1830.
He accused his subjects of having learnt nothing from the revolution and forgot nothing about monarch privileges which resulted in their short rule.
What are critical raw materials?
Critical raw materials (CRM) are materials essential for various industries and technologies. Examples include lithium (used in batteries), cobalt and gallium (for solar panels); rare earths are critical components of permanent magnets used in wind turbine motors, and titanium (used in aerospace).
With the global quest for CRMs, Africa is at a pivotal crossroads marked by opportunity and peril. The echoes of past colonial imprints and contemporary global demands converge, shaping Africa’s role in the emerging landscape of resource allocation and economic transformation. With recollections from the Berlin Africa Conference, the colonisation period, and the transformation of the Middle East, one would have thought that Africa would have learnt a thing or two, but alas, the continent seems to be singing from the same old hymn book of yesteryear. Africa has learnt nothing and forgotten everything.
However, Africa now faces a unique opportunity in the global push to decarbonise energy and reduce greenhouse gas emissions which aligns with the Paris Agreement. This international push allows Africa to uplift its citizens and foster continental development. The irony should not be lost that as others try to decarbonise all sectors, Africa is yet to provide power to its growing population.
The EU strategy
The European Union (EU) has taken decisive steps to limit global temperature rise to below 2 degrees Celsius. The critical raw material strategy, a cornerstone of the 2021 Green Deal, aims to secure essential resources and achieve its climate targets. The EU recognises that reliance on third-country raw materials amid surging global demand driven by digital and green economies renders its supply chains vulnerable. The EU has learned from its past and it is fortifying its resilience.
The EU’s critical raw materials strategy is premised on five key pillars. First, the plan outlines a set of actions, including a measurable reduction in dependency on external supplies and a deadline to comply by 2030.
Second, the strategy aims to build the EU’s capacity by strengthening its raw material value chain.
This strategy includes redoubling national exploration efforts and creating an enabling environment for mineral exploitation.
Thirdly, the strategy intends to improve the EU’s ability to withstand disruptions in the supply chain due to geopolitical factors or natural hazards. Building up stock reserves is identified as one such action.
Fourth, the strategy realises the need to invest in innovation and research. A raw materials academy is planned to promote skills relevant to the workforce in CRM supply chains.
Finally, the strategy proposes a circular critical raw materials economy. The EU hopes to achieve this by encouraging CRM recovery from extractive waste facilities. As a sustainability champion, the EU also plans for certification schemes that increase the sustainability of critical raw materials on the EU market.
The EU adopted the Green Deal against a budget of over 1 trillion euros. The European Green Deal aims to transform the European economy by mobilising substantial funds for sustainable investments, driving the transition towards a greener and more resilient future. They hope to achieve without slowing down their economies. But CRMs, such as renewable energy, are essential for achieving the Green Deal’s goals. CRMs like lithium, cobalt and gallium are crucial for batteries in electric vehicles and renewable energy storage.
Since 2011, the EU has come up with five lists of critical raw materials to underscore the importance of the matter. The 2011 list started with 14 minerals and has moved currently to 70 candidate raw materials, comprising 67 individual materials and three materials groups: 10 heavy and five light rare earth elements, and five platinum group metals (PGMs).
The Ukraine-Russian conflict and COVID-19 impacts on supply chains have already vindicated the EU strategy to cut down its dependency on third-country supplies and broaden its sources of CRM as a positive step.
China strategy
China’s approach to CRM is akin to the dramatic entrance of Hamlet’s father’s ghost in Shakespeare’s play. While not spectral, China’s dominance in the CRM sector is undeniably remarkable. Influenced by global discussions on criticality, China has meticulously assessed the strategic importance of mineral raw materials. In 2016, the country established an official catalogue of 24 “strategic minerals”.
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