AFRICA: Africa Prioritizes Processing for Local Value

Across Africa, a growing number of governments are shifting their mineral strategies to prioritize local processing and value addition, aiming to move beyond their traditional role as exporters of raw ore. Countries like Zimbabwe have announced bold measures, including a ban on raw lithium exports by 2027, in an effort to promote domestic beneficiation and capture more value from their resource wealth. Similar efforts are underway in Ghana, Rwanda, and Namibia, where investments are being channeled into smelters, refineries, and battery precursor plants. These steps are not only intended to increase revenues but also to create jobs, support local industry, and build stronger linkages between extractive sectors and national economies.

This trend reflects both economic logic and geopolitical foresight. As global demand for critical minerals like lithium, cobalt, and rare earths accelerates—driven by the energy transition—African nations are seeking to position themselves as indispensable players in the global value chain. By processing minerals domestically, they aim to gain greater leverage in trade negotiations and attract higher-value partnerships, particularly with countries seeking ethical, traceable, and low-carbon supply chains. However, the success of this strategy hinges on overcoming infrastructure constraints, improving energy access, and strengthening governance frameworks that can support sustainable industrial development.

At the center of this transformation lies the question of social license to operate  (SLO). While local processing offers the promise of inclusive growth, it can also intensify concerns over environmental degradation, labor rights, and foreign domination of industrial assets. Communities that once tolerated mining may react differently when processing plants emerge near their homes. To secure and sustain SLO, governments and companies must ensure transparency, community participation, and equitable benefit-sharing in the new value-added landscape. When done responsibly, Africa’s beneficiation drive can become a model for how mineral-rich nations turn extractive industries into engines of national transformation—grounded in both economic value and social legitimacy.

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