Africa needs developing industrial processing capacity to tap into its strategic mineral reserves, the African Development Bank (AfDB) said.
In a detailed report dubbed, A Dozen Critical Minerals for Africa’s Inclusive Growth and Development, the development bank revealed stark imbalances. Despite 29% of global bauxite reserves, 64% of manganese, and 70% of cobalt production, Africa captures only 1% to 2% of global refining capacity.
The continent continues to export raw materials while missing out on the high-value segments of refining, metallurgy, and clean-energy technologies, the report said.
AfDB notes that Africa remains locked into a “pit-to-port” infrastructure model inherited from the colonial era, designed for rapid ore export rather than industrialization.
Rail lines and ports are rarely modernized, limiting the development of regional value chains, it said.
The report underscores a structural challenge. 600 million Africans lack access to electricity, making local processing of energy-intensive minerals such as nickel, copper, and aluminum nearly impossible. This energy gap undermines competitiveness and perpetuates dependence on imports of finished products.
AfDB argues that the 90% drop in solar photovoltaic costs between 2010 and 2024 creates a unique chance for Africa to produce “green” steel and aluminum, meeting carbon standards required by major markets like the EU and its Carbon Border Adjustment Mechanism (CBAM).
To reverse the trend, the report calls for regional industrial zones, robust logistics corridors, and massive investment in reliable energy.
Initiatives such as the DRC-Zambia Battery Precursors Zone and the Lobito Corridor are cited as examples of integrated strategies to capture more value locally.
