A Continent at the Crossroads of a New Industrial Revolution

Africa today stands at a rare moment in history — not because of its gold, oil, or diamonds, but because of the strategic minerals buried beneath its soil. Among them, rare earth elements (REEs) — neodymium, praseodymium, dysprosium, and others — could redefine Africa’s position in the global economy if harnessed wisely.

For over a century, Africa has been a supplier of raw materials for the world’s industries, exporting unprocessed wealth and importing finished goods. But the emerging clean energy and high-tech revolution presents a new opportunity: to move up the value chain, from being a supplier of ores to becoming a producer of refined materials, magnets, and advanced technologies.

As global powers race to secure non-Chinese sources of REEs, Africa finds itself in a strategically pivotal position — potentially holding the keys to the future of electric mobility, renewable energy, and defense technology.

1. The Global Supply Imbalance: China’s Monopoly and the Search for Alternatives

At present, China controls around 60–70% of rare earth mining and nearly 90% of global refining capacity. This dominance allows Beijing to influence global prices, restrict exports, and shape industrial strategy far beyond its borders.

In response, the U.S., EU, Japan, and other nations are scrambling to diversify supply chains. But building new mines and refining facilities is slow, expensive, and politically sensitive in developed countries due to environmental regulations and local opposition.

This is where Africa enters the picture.

From Burundi to Malawi, Tanzania, Madagascar, Namibia, and South Africa, large REE deposits have been discovered or partially developed. These reserves — many still untapped — could play a decisive role in the next decade as the world seeks secure, ethical, and sustainable sources of these critical minerals.

2. Africa’s Geological Wealth: A Sleeping Giant

Africa hosts several known and potential rare earth deposits:

• Malawi’s Songwe Hill project (Mkango Resources) contains neodymium and praseodymium vital for magnets.

• Burundi’s Gakara mine, historically one of the world’s richest REE deposits.

• Tanzania’s Ngualla Project — one of the largest undeveloped rare earth reserves outside China.

• South Africa’s Steenkampskraal Mine, a high-grade monazite deposit rich in neodymium and dysprosium.

• Madagascar’s Tantalus Project, and Namibia’s Lofdal Mine, with promising heavy rare earth elements.

Yet, despite this abundance, most African nations export only raw minerals or concentrates, capturing less than 10% of the total value chain. The refining, alloying, and magnet manufacturing — where profits multiply — occur abroad.

If Africa can bridge this gap, it could transform from being a supplier of dirt to a manufacturer of strategic technology materials.

3. The Value Chain Opportunity: From Ore to Magnet

Each stage of the rare earth and magnet value chain offers a different level of economic leverage:

1. Mining – lowest value, high environmental cost.

2. Refining and separation – complex but creates skilled jobs and industrial capacity.

3. Alloy and magnet manufacturing – high value-added, integrates into global high-tech industries.

4. Component assembly and innovation – the ultimate step where technology, patents, and products are born.

For Africa, stopping at stage one means repeating the colonial-era resource trap.
Climbing to stage two and three means building real industrial power — the ability to supply not just ores, but the core materials for electric motors, wind turbines, and electronics.

This is not merely an economic upgrade; it’s a strategic transformation. Nations that control magnet production will wield influence over global supply chains, much like oil producers did in the 20th century.

4. Strategic Advantages Africa Can Leverage

a. Resource Endowment

Africa’s natural deposits position it as the next frontier in rare earth production — especially for heavy REEs like dysprosium and terbium, which are rare even in China.

b. Growing Infrastructure Networks

With expanding port, rail, and power infrastructure under the African Continental Free Trade Area (AfCFTA), regional cooperation could support cross-border industrial clusters — e.g., mining in Malawi, refining in Tanzania, and magnet assembly in South Africa.

c. Rising Domestic Demand

Africa’s own demand for renewable energy, electric mobility, and digital devices is growing. Building domestic rare earth industries would serve local markets as well as exports.

d. Global Interest and Funding

Western nations and Asian investors are increasingly willing to fund “China-free” supply chains. Africa can negotiate technology transfer, joint ventures, and local processing commitments instead of simple extraction deals.

5. The Challenges: Governance, Technology, and Environmental Risks

The opportunities are vast — but so are the challenges.
Many African states face:

• Weak regulatory oversight, allowing environmental damage and corruption.

• Limited refining and technical expertise.

• Infrastructure deficits in electricity, transport, and chemical industries.

• Unequal partnerships, where foreign companies control operations and profits.

If not carefully managed, rare earth extraction could repeat the mistakes of oil and cobalt industries — enrichment for few, pollution for many.

A strong policy framework is essential to prevent “extractive neo-colonialism” under a new green label.

6. Strategic Pathways for Africa’s REE Industrialization

(1) Regional Cooperation and Value Chain Integration

No single African country may have the full capacity — but together, through AfCFTA-based cooperation, nations could specialize in different stages:

• Malawi, Tanzania, Burundi – mining and ore concentration.

• South Africa, Namibia – refining and alloying.

• Egypt, Morocco, Kenya, Nigeria – magnet and component manufacturing.
  This approach mirrors Asia’s electronics ecosystem, where supply chains are regionally integrated.

(2) Clean Refining Technologies

Africa can leapfrog dirty methods by adopting environmentally friendly refining — using ionic liquids, bioleaching, or renewable energy-based hydrometallurgy.
International partnerships (with Japan, South Korea, or the EU) can accelerate clean refining innovation.

(3) Local Content and Industrial Policy

Governments should mandate that at least 30–50% of mineral value addition occur locally before export.
This encourages domestic refineries, magnet factories, and research centers.

(4) Training and Technology Transfer

Collaborating with universities and technical institutes to train chemists, engineers, and materials scientists will ensure Africa controls the intellectual foundation of its industries.

(5) Ethical Certification and Branding

By committing to transparent, environmentally responsible production, Africa can market its REEs as “green and conflict-free”, appealing to global manufacturers seeking sustainable sources.

7. Long-Term Strategic Vision: From Extraction to Innovation

Africa’s rare earth opportunity should not end at magnets.
The ultimate goal is to build a technological ecosystem:

• Component industries – electric motors, sensors, wind generators.

• Energy and mobility applications – EV production, drone manufacturing, smart grids.

• Research and innovation – African-led materials science and magnet R&D.

In 10–15 years, Africa could move from supplying ore to exporting advanced energy systems, if investments align with industrial strategy and continental cooperation.

8. Africa’s Rare Earth Moment

The 21st century is a battle not for land, oil, or colonies — but for control of critical materials and technological ecosystems.
Africa’s rare earths offer a chance to rewrite its role in this new order.

The continent can either remain a warehouse of raw materials or become a workshop of the future — producing the magnets, turbines, and electric motors that will drive the next industrial age.

To achieve this, African leaders must think beyond mining.
They must build institutions that combine industrial policy, clean technology, and continental collaboration.
If successful, Africa will not only supply the rare earths that power the world — it will shape the world that those rare earths power.