An article from Bloomberg (April 2023) details how cooperation agreements between African countries and major powers —such as the European Union and China— seek to secure the supply of critical minerals for high-tech industries and renewable energy. The continent hosts significant reserves of cobalt, platinum, and manganese, increasingly in demand by the automotive sector and consumer electronics.
Although these collaborations may boost economic development and job creation, political instability and corruption in certain African regions represent risks that investors must carefully weigh. However, transparency and governance initiatives, such as adopting international standards, can improve the investment climate and attract foreign capital.
Africa’s growing importance in the global mining landscape is also generating competition among powers seeking to secure their supply chains. This context opens the door for independent funds and investors willing to finance high-potential projects, as long as safeguards are established and ESG standards are met.
Source:
• Bloomberg, “Africa Emerges as Key Supplier of Essential Minerals Amid Global Scramble,” April 2023.
