Africa poised to become a global critical mineral powerhouse, says BCG
Some African nations are in a prime position to shift from extracting critical minerals to instead become central players in the global mining-to-manufacturing value chain.
The global economy is shifting from fossil fuels to critical minerals, which are quickly becoming the foundation of modern industry. These essential materials power everything from electric vehicles and clean energy systems to digital infrastructure and advanced technology. The future depends on secure access to these resources.
A new report from the Boston Consulting Group (BCG) shows how, with global demand for these minerals expected to more than double by 2040, Africa is no longer on the sidelines. The continent holds some of the world’s largest reserves of materials essential for modern technology and green energy, including cobalt, copper, and platinum.
“Africa has what the world needs,” said Tycho Moencks, managing director and partner at Boston Consulting Group. “For the first time in generations, the continent has the leverage to shape – not just serve – the next global industrial era.”
From extraction to transformation
BCG’s analysis reveals a huge economic opportunity: Every $1 billion invested in mining and processing can create thousands of jobs, generate up to $280 million in annual GDP, while also contributing significantly to government revenue and infrastructure development.
“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,” said Lindokuhle Shongwe, project leader at BCG.
South Africa, in particular, is well-positioned to lead this change due to its significant reserves of platinum group metals and manganese, as well as its existing mining expertise and infrastructure.
A three-part blueprint for success
The report outlines three key strategies for African nations to seize the opportunity:
Attract investment: Nations must streamline regulations and enhance environmental, social, and governance (ESG) standards to build credibility and attract international partners. Namibia, for example, has been successful in doing this.
Build regional value chains: By collaborating, countries can create specialized industrial ecosystems. An example of this is the Battery Minerals Corridor initiative between the Democratic Republic of Congo and Zambia, which links cobalt and copper extraction to regional processing capabilities.
Forge global alliances: African nations can secure long-term demand and access technology and funding through strategic partnerships, similar to Morocco’s success with its phosphate-based battery materials.
“This is Africa’s critical decade. The continent has the minerals, the momentum, and the leverage. African leaders must act decisively and collectively,” Moencks said.
Taking a look at the global context makes this opportunity for Africa even more interesting. Unlike other regions like Europe or Asia, which are tied to legacy infrastructure, African nations can build modern, transparent, and digitally-enabled value chains from the ground up.
With major economies like the US and EU implementing policies to secure their critical mineral supply chains, Africa’s window of maximum leverage is now open. This is a generational opportunity that demands both ambition and execution from African leaders to transform potential into tangible economic benefit.
