Digging for Opportunity: Harnessing Sub-Saharan Africa’s Wealth in Critical Minerals

Sub-Saharan Africa, home to 30 percent of the world’s critical minerals, is on the brink of a major transformation with the global move towards clean energy. Whereas the extraction of select minerals could boost the region’s GDP by 12 percent or more by 2050, advancing beyond exporting raw materials to developing processing industries presents an even larger opportunity. A regional strategy built on cross-border collaboration and integration can leverage the diversity of minerals and create a larger, more attractive regional market for much needed investment. Moreover, structural reforms at the country level to nurture domestic firms in processing and supporting industries, while steering clear of inward-looking industrial policy, will amplify the gains from these minerals. Unlocking this potential can drive broader economic development, encourage technology transfer, and ensure sustainable, higher returns from the region’s critical mineral resources. Be it extraction or processing, this transition requires sound fiscal regimes and policies to manage these gains responsibly.