As the world transitions towards clean energy, digitisation and upgradation of defence systems, critical minerals such as cobalt, copper, graphite, rare earth elements (REE), nickel, lithium have become imperative for 21st century economies. The global supply chain of these critical minerals is highly concentrated and vulnerable to geopolitical risks, price volatility and regulatory uncertainty. Therefore, the Tokyo International Conference on African Development (TICAD) offers a well-established institutional framework that can be leveraged to create a framework through which a resilient critical mineral supply chain can be built while providing equitable development in Africa.
Africa holds more than 30% of critical minerals needed to power these technologies. The Democratic Republic of Congo (DRC) alone holds more than half of global cobalt reserves and accounts for over 75% of cobalt production. The DRC and Zambia, possess significant copper reserves and account for nearly 13% of global copper supply. DRC, Mali, Zimbabwe, Ghana and Namibia hold 4.9 million tons of lithium constituting 6% of global lithium reserves. Africa holds 24% of natural graphite reserves and 10% of production while Mozambique and Madagascar account for 6% and 4%. production respectively. Africa also has 7% of global nickel reserves and 4% of global production, with Madagascar and South Africa being the leading producers. The continent also holds substantial reserves of REE, mainly concentrated in Madagascar and Nigeria. However, despite possessing substantial reserves, Africa is not a important player in global critical mineral supply chain as it lacks processing and refining facilities. This creates an imbalance as African producers are vulnerable to commodity cycles and suffer from limited value capture while other economies suffer from the concentration of refining and processing in few places. Therefore, it is essential for TICAD to help correct the imbalance.
TICAD was established in 1993 by the Government of Japan to promote Africa’s development, peace and security through strengthening multilateral cooperation and partnership. Over more than three decades, TICAD has invested in a broad range of cooperation in infrastructure development, industrial development, capacity building and resource governance, strengthening economic and institutional linkages. This multidimensional engagement is a basis for aligning resource-based growth with sustainability, inclusivity, and long-term development outcomes. As critical minerals now sit at the intersection of economic development, industrial policy, and strategic competition, TICAD offers a structured platform through which these priorities can be addressed in a coordinated manner. One of the key limitations of Africa lies the extraction-based model. Raw export of ores generates substantial foreign exchange, giving little or no incentive to undergo structural transformation or undergo industrialisation. TICAD can therefore play a valuable role in fostering value-added activities, such as mineral processing, refining, and intermediate manufacturing. This approach also aligns with Agenda 2063 which emphasises sustainable development, industrialisation and economic development of Africa.
Beyond providing value addition, TICAD can play a role in addressing infrastructure as well as financal constraints that have hindered Africa’s participation in critical mineral supply chain. Processing and refining require skilled labour, road and transportation network, reliable electricity and water availability. Most of the mining-rich African countries suffer from unreliable power generation and insufficient transport corridors which impede private investment. For instance, DRC and Zambia have substantial amount of copper reserves; however, both countries continue to suffer from an unreliable power supply and poor road infrastructure. Zimbabwe, Ghana and Namibia, which hold substantial lithium reserves have poor infrastructure. Mozambique and Madagascar too struggle with similar issues.
Most of these mineral-rich countries also suffer from governance issues and are not transparent. There are also issues related to environment and sustainability. Much of the copper production in DRC and Zambia is carried out through artisanal small-scale mining (ASM). While they contribute significantly to the local economy and generate jobs, ASM’s have their own challenges. For instance in the DRC, tens of thousands of children work in mines daily to support their families. There are challenges related to poor working conditions, environmental degradation, health and occupational hazards. As global demand for critical minerals increases, these countries come under scrutiny for poor environmental, social and governance (ESG) frameworks, discouraging investors and hampering market access along with credit. In this context, TICAD can play a crucial role in assisting many of these African countries to establish a dedicated ESG framework for critical minerals to ensure responsible extraction, sustainable mining practices and transparency in these African countries. Japan’s expertise in sustainable mining practices and effective governance can guide many of these countries in the task to build an ESG framework for ethical mining, which would help them countries attract investors, access markets and credit as well.
Structural constraints related to governance, infrastructure and limited downstream processing have limited Africa’s role in the global critical mineral supply chain despite possessing vast resources. Therefore, TICAD must concentrate on organising sustainable, transparent and resilient critical mineral supply chains.
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