Turning Africa’s Mineral Wealth into Economic Gold: The Value Addition Imperative – Dr. Kenny Odugbemi

Africa’s vast mineral wealth, long celebrated as a symbol of potential prosperity, has often been the continent’s greatest paradox. Despite housing some of the richest deposits of gold, diamonds, copper, oil, and other valuable minerals, African nations have found themselves on the losing end of the global value chain—exporting raw materials while importing finished products at higher costs.

The current state of mineral exports reveals a continent brimming with untapped value. Angola, Nigeria, and South Africa headline the list of resource-rich countries with mineral exports running into billions of dollars annually. However, these figures mask a troubling reality: most of the minerals leave African shores unprocessed, denying the continent the opportunity to benefit from value addition and industrialization.

This over-reliance on raw exports is unsustainable. It limits job creation, stifles technological advancement, and exposes African economies to the volatility of global commodity prices. To truly benefit from its mineral endowments, Africa must shift its paradigm from being a supplier of raw materials to becoming a hub of mineral value addition and industrial manufacturing.

Investing in local processing and refining infrastructure is the first crucial step. Establishing facilities that can transform crude minerals into refined products not only increases the market value of these resources but also creates employment opportunities, especially for youth. Countries like Botswana, which has developed a thriving diamond-cutting industry, offer models for others to emulate.

Encouraging the development of value-added manufacturing sectors—such as electronics, jewelry-making, and battery production—can further maximize the benefits of local mineral wealth. Minerals such as lithium, cobalt, and rare earth metals, which are critical in the production of electric vehicles and smart devices, offer enormous potential for Africa to tap into the global tech economy if properly harnessed.

Economic diversification is also essential. Rather than placing all bets on resource extraction, African governments must invest in sectors such as tourism, agriculture, renewable energy, and services to create a more resilient and balanced economic foundation. Technology and innovation should be at the heart of this transformation. Investing in research and development will not only improve mineral extraction techniques but also enable smarter environmental management and higher operational efficiency.

As former African Union Commission Chairperson Nkosazana Dlamini-Zuma rightly noted, Africa’s resources are a blessing, but they can become a curse if not managed properly. The continent cannot afford to continue exporting its future. Echoing the words of African Development Bank President Akinwumi Adesina, the road to sustainable development lies in adding value to what Africa already possesses in abundance.

Now more than ever, Africa must take control of its destiny. By committing to value addition, building robust industrial frameworks, and empowering local talent, African nations can convert their mineral wealth into engines of growth, innovation, and prosperity. The time for rhetoric is over; the time for action is now.