African countries can break aid dependency by simply capturing the full value of their mineral resources.
Maxwell Gomera
Resident Representative of the United Nations Development Program in South Africa
Published On 12 Apr 2025
The decision of US President Donald Trump’s administration to suspend foreign aid and shut down the USAID agency has sent shockwaves across the development industry. In 2024, nearly a third of the $41bn in US foreign aid went to Africa, helping support various sectors from healthcare to education and sanitation.
But as aid organisations sound alarm bells and government officials wring their hands over suspended programmes, we are missing the bigger picture: Africa’s continued dependence on foreign aid is a choice, not a necessity. Our continent sits atop some of the world’s largest reserves of the very minerals that will power the future, yet we remain trapped in cycles of aid dependency. It is time to change that
Let us be clear about what is at stake. The Democratic Republic of the Congo supplies 70 percent of the world’s cobalt – the essential ingredient in electric vehicle batteries. South Africa produces 75 percent of the world’s platinum and 50 percent of palladium. Mozambique and Madagascar possess some of the largest graphite deposits globally. Zimbabwe has the largest deposits of caesium, a critical metal used in GPS and 5G systems.
More than just rocks and metals, these are the keys to the global clean energy transition. Every electric vehicle, solar panel, and wind turbine depends on minerals that Africa has in abundance.
Yet here we are, still exporting raw materials like colonial-era vassals while begging for aid from the same countries that profit from our resources. The math is infuriating: We sell raw cobalt for $26-30 per kg (2.2lb), while battery-grade processed materials fetch $150-200. We’re giving away more than 80 percent of the value chain to foreign processors and manufacturers. This isn’t just bad business – it’s economic malpractice.
The global battery market alone will reach $250bn by 2030. The renewable energy sector is growing at breakneck speed, with solar installations increasing 26 percent annually.
Clearly, Africa’s mineral riches represent the greatest economic opportunity of our generation. But instead of positioning ourselves to capture this value, we are debating how to patch the holes left by suspended aid programmes.
Critics will say we lack the infrastructure, expertise, and capital to process these minerals ourselves. They are right – for now. But this is precisely where we should be investing our resources and focusing our political will. The Chinese understood this decades ago, which is why they have poured nearly $58bn into securing control of critical mineral supply chains across Africa. They saw the future while we were busy filling out aid application forms.
The solution is not complicated, though it is challenging. We need to build processing facilities, not just extraction sites. We need to establish special economic zones focused on mineral beneficiation, not merely export terminals. We need to invest in research and development facilities that can adapt and improve processing technologies. Most importantly, we need to think and act regionally.
Imagine a Southern African Development Community Battery Materials Initiative, where countries pool resources and expertise to build integrated value chains. Picture an East African Rare Earth Elements Cooperation Framework that turns our mineral wealth into high-tech manufacturing capabilities. These are not pipe dreams – they are missed opportunities every day we continue business as usual.
Source: Aljazeera
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