Vice President Kashim Shettima has called on African nations to shift away from the export of raw minerals and instead focus on domestic processing to secure the continent’s economic future. Speaking on behalf of President Bola Tinubu at the Third Africa Minerals Strategy Group High-Level Roundtable in New York, the Vice President argued that the current model of exporting unprocessed resources fails to benefit the African people.
Shettima noted a critical contradiction in the continent’s economic structure, stating that Africa cannot consider itself wealthy while the communities situated around mineral-rich areas continue to suffer from extreme poverty. He emphasised that the extraction of wealth must be accompanied by local industrial development to prevent the “resource curse” that has historically hindered many African states.
The Vice President’s remarks in New York focused on the necessity of building local value chains to ensure that mineral wealth translates into industrialisation and job creation rather than just revenue for foreign entities.
Addressing the poverty in mining communities
For decades, many African economies have relied on the extraction and export of raw commodities such as gold, lithium, cobalt, and copper. While these exports generate foreign exchange, the lack of local processing means the majority of the economic value is captured by foreign manufacturers who refine these materials into finished products. This cycle often leaves host nations with environmental degradation and minimal employment opportunities.
Shettima argued that for Africa to truly capitalise on the global energy transition, it must move beyond being a mere supplier of raw materials. As the world demands more critical minerals for electric vehicle batteries and renewable energy technologies, African nations hold significant leverage. However, that leverage can only be realised if the continent invests in the infrastructure and technology required to process these minerals locally.
The Vice President’s position aligns with the Nigerian government’s recent efforts to diversify the economy through the solid minerals sector. Nigeria has been working to formalise its mining industry and attract investment in mineral processing plants to ensure that the country’s natural resources, such as lithium and gold, contribute more directly to the national GDP and local livelihoods.
Industry experts suggest that the shift towards value addition requires more than just political will; it demands coordinated regional policies to prevent a “race to the bottom” where countries compete by offering the lowest possible royalties. Instead, African nations must harmonise their mining codes to encourage the establishment of refineries and manufacturing hubs within the continent.
The call for reform comes at a time when global supply chains for critical minerals are becoming increasingly contested. If African nations can successfully implement value-addition strategies, they could transition from being passive participants in the global mineral trade to becoming central hubs in the green energy supply chain. The success of this transition will depend on whether African governments can effectively implement policies that mandate local processing and protect the interests of mining communities.
Explore more News stories from Business Elites Africa.
