Seizing the critical minerals moment will be Africa’s path to industrialisation
The Witwatersrand Basin has produced nearly half of all gold ever mined. In the 1970s, South Africa accounted for
almost two-thirds of global gold production. This wealth supported the Bank of England, maintained sterling as the
world’s reserve currency, and funded imperial trade. However, little of the resulting industrial capability was
developed in Africa. This paradox defines Africa’s resource narrative: it drives global prosperity without delivering proportional benefits at home. The key question is whether the critical minerals boom will change this pattern. A second chance, on better terms The transition to clean energy, digital technology, and AI has raised global demand for minerals such as lithium, cobalt, graphite, manganese, copper, titanium, and rare earths, many of which are abundant in Africa.
This demand is long-term, with governments and companies seeking secure supply chains and processed materials rather than raw ore. This shift gives Africa influence it has rarely held. However, most value is lost before significant industrial development occurs. Estimates compiled from USGS, World Bank and industry data, indicate that less than 10 per cent of Africa’s lithium, graphite, copper, and gold is processed locally for batteries or other uses. For instance, Africa processes only 3 to 5 per cent of graphite, despite its importance in battery anodes. Cobalt is the exception, at about 20 per cent, achieved only under intense geopolitical and ESG pressure.
Africa’s broader industrial landscape remains challenging. The African Development Bank’s 2025 Africa
Industrialisation Index reports that Africa accounts for less than 2 per cent of global manufacturing and only 1.4
per cent of manufactured exports. Manufacturing value added per person remains below 2014 levels. Even South
Africa, once the continent’s leading industrial nation, has declined since 2010 and now trails Morocco. The cost of exporting rocks Commodity dependence is not only a missed opportunity but also a source of instability. For example, copper represents 10 to 15 per cent of Zambia’s GDP and 70 to 80 per cent of its export earnings. When prices fell and the pandemic struck in 2020, Zambia’s economy contracted, making it the first African country to default on its debt during the pandemic. Without local processing, downturns are more severe and upturns fail to deliver lasting benefits.
Beneficiation addresses this challenge: Processed products command higher prices, access more stable markets,
create skilled jobs, and support supplier ecosystems that endure beyond individual price cycles. Africa already has the blueprint. None of this is new thinking. The Africa Mining Vision, adopted by African Union heads of state in 2009, observed that “most of Africa’s minerals are exported as ores, concentrates or metals, without significant value-addition” and called for “down-stream linkages into mineral beneficiation and manufacturing”. Agenda 2063 envisages regional manufacturing hubs built around beneficiating Africa’s minerals so the continent captures a greater share of the rents from its natural resources; its African Commodities Strategy is a flagship programme for precisely that purpose. The AU’s Green Minerals Strategy, published in 2025, commits to driving “value addition at source”. Africa’s challenge is not a lack of strategy but of execution, with too few bankable projects translating policy into operational facilities.
South Africa has the world’s second-largest reserves of the titanium mineral, yet none is processed into pigment or
metal within Africa. Instead, the continent imports all its pigment and metal requirements. Ilmenite, the primary
raw material, is mined and exported from the continent for less than US$300 per tonne, while titanium dioxide
pigment, used in paints, plastics, paper, and inks, sells for over US$3,000 per tonne—more than ten times higher in value. Nyanza Light Metals’ US$850 million plant in the Richards Bay Industrial Development Zone will address this gap by producing 80,000 tonnes of pigment annually as Africa’s first large-scale titanium dioxide facility. In July 2021, the African Finance Corporation (AFC) became a co-development partner and intends to participate in the principle investment of the project that will create approximately 3,000 construction jobs and 850 permanent positions, with 45 per cent of the permanent roles targeted for women, along with import savings and increased export earnings.
The project’s financial viability was achieved through a phased approach. The support of South Africa's
Department of Trade, Industry and Competition (DTIC), alongside sponsor investment, enabled feasibility studies
and the establishment of a testing centre to produce customer qualification samples. In 2021, Afreximbank and
AFC joined as co-developers, making them co-developers in the project. East China Engineering Science and
Technology Corporation (ECEC), a leading builder of titanium dioxide plants, was selected as the EPC contractor.
The sponsors launched the Nyanza pigment brand using product from an existing built and operated ECEC plant,
securing customers before construction began and incorporating protections in sales agreements to reassure
lenders. In October, 2025, the African Development Bank approved its US$75 million in senior debt participation.
The project has commenced construction in June with early civil works such as piling underway, with production
expected within 36 months thereafter.
The project also demonstrates the catalytic role that targeted industrial policy can play in building strategic
beneficiation capacity. Early-stage project development support from the South African Government, through the
DTIC, helped de-risk critical development activities and laid the foundation for subsequent participation by
institutions such as AFC, Afreximbank and the Industrial Development Corporation (IDC). Nyanza’s impact extends beyond a single plant. Its by-products, skilled workforce, and customer relationships will support a second phase: a battery-grade lithium iron phosphate project for energy storage, electric mobility, and AI infrastructure.
A Nyanza for every mineral
This approach is applicable in other countries and minerals as well. It relies on four factors any resource-rich nation
can provide: early public investment to reduce risks, special economic zones with strong infrastructure and
incentives, early involvement of development finance institutions, and regional markets large enough to absorb
output. Intra-African trade accounts for only 14.4 per cent of the continent’s total, compared to 60 per cent in
Asia, according to the AfDB. Full implementation of the African Continental Free Trade Area would provide
processors with the scale that national markets alone cannot achieve.
Africa requires projects like Nyanza across multiple regions and for various minerals. The Witwatersrand enriched
other parts of the world; this time, the benefits should remain where the minerals are sourced.
