The competition for strategic minerals in Africa, vital for the global energy transition, significantly influences political stability and governance in resource-rich nations.

It creates a new "scramble for Africa" as major powers vie for control, which can lead to increased political instability, corruption, and conflict. However, it also presents an opportunity for African nations to leverage their resources to demand better deals and promote local value addition.

Influence on Political Stability-

The global race for critical minerals often exacerbates existing political instability in African nations, creating a complex cycle of resource exploitation and weak governance.

• Corruption and Weak Governance: The immense value of minerals like cobalt (essential for batteries) and rare earths (used in electronics and magnets) creates a powerful incentive for corruption. Opaque mining contracts, often negotiated with foreign companies, can lead to state revenues being diverted away from public services and into the hands of a small elite. The Democratic Republic of Congo (DRC), for example, holds a vast majority of the world's cobalt, yet it remains one of the poorest nations, with a history of corruption in its mining sector.

• Conflict and Violence: Control over mineral-rich territories can fuel conflicts, as armed groups and militias fight to seize control of lucrative mines. The eastern DRC, in particular, has seen decades of conflict partly financed by the illegal trade of minerals. The presence of foreign powers and private military groups offering security can further entangle these local conflicts in broader geopolitical rivalries.

• Geopolitical Rivalries: The competition for these minerals has become a key battleground for global powers. China, which currently dominates the processing of many critical minerals, has secured access through long-term infrastructure-for-resources deals. In response, the U.S. and the EU are forming partnerships like the Minerals Security Partnership to diversify their supply chains and offer alternatives. This competition can empower African leaders with new bargaining power but can also risk turning the continent into a chessboard for external powers.

Impact on Governance and Economic Policies-

The demand for critical minerals is also shaping governance and economic policies as African nations try to leverage their resource wealth for sustainable development.

• Resource Nationalism: Many African nations are implementing policies of resource nationalism to capture more value from their resources. This includes banning the export of unprocessed minerals and encouraging domestic processing and refining. The goal is to move up the value chain, create local jobs, and avoid a continuation of the "resource curse," where countries with abundant resources experience slow economic growth.

• Balancing Sovereignty and Investment: African governments are caught in a delicate balance between asserting their sovereignty over national resources and attracting the foreign investment and technology needed to develop their mining sectors. While countries like the DRC are renegotiating contracts with foreign companies, this can create policy uncertainty that may deter future investment.

• Regional Cooperation: The need to build a resilient and sustainable mineral value chain is also fostering regional cooperation. Initiatives like the African Continental Free Trade Area (AfCFTA) and the African Green Minerals Strategy aim to coordinate policies and build cross-country processing facilities, ensuring that the benefits of the mineral wealth are shared more equitably across the continent.

By John Uju-Ikeji