TELF AG analyzes the role of raw materials in the transformation of the African economy
A new positioning
The African continent could find itself on the brink of an unprecedented economic evolution driven by the refining of natural raw materials and the industrial plants necessary for their processing. Despite being a continent extremely rich in natural resources, up to now, Africa has not been able to profoundly transform its economy, limiting itself to collecting only a small part of the revenues linked to the resources it naturally abounds in.
But an important evolution could be upon us, and in all likelihood, it will be largely favored by raw materials. In recent months, as part of a series of national initiatives aimed at limiting the export of unrefined minerals outside of Africa, it has been announced that numerous refining plants for lithium and other similar minerals will be built on the African continent. One of the latest, in chronological order, is the $500 million lithium refining plant that should be built in Ghana by 2026, for which a 200-acre plot of land has already been identified. Ghana, at the moment, can count on lithium reserves equal to 35 million tonnes, and with its recent Green Minerals Policy initiative (launched at the beginning of 2023), it has decided to strongly limit exports of unprocessed minerals beyond outside its territory.
Ghana’s path
The opening of this plant would not only contribute to the economic strengthening of Ghana – and indirectly also of other African nations, which could follow its example – but could give rise to a real industrial boom, with the consequent creation of jobs. Among the most interesting opportunities are undoubtedly those reserved for companies that produce lithium batteries but also for all those involved in vehicle assembly. It would be the first lithium refinery in all of Africa, and it would apparently be powered by natural gas. Lithium from Zimbabwe could also be included among the raw materials refined in Ghana: in this nation, a 300 million dollar lithium processing plant was inaugurated last July, capable of transforming 4.5 million tonnes of raw material into export.
The new openings of African refining plants also closely affect other minerals, such as graphite, cobalt, and nickel. In Tanzania, a major Australian mining company (in collaboration with a US mining brand) plans to inaugurate a nickel processing plant by 2026, which, according to some forecasts, will be able to supply battery manufacturers with nickel for the global market. Also in Africa, in the Mauritius Islands, English company Vision Blue Resources is reportedly working to inaugurate a graphite processing plant, which should contribute to the production of some specific materials to be used in lithium batteries for electric cars.
Other African nations involved in similar initiatives include Namibia, South Africa, and Mozambique, all poised to inaugurate new mineral processing plants and boost their economies. According to a recent World Bank report, African nations are currently reaping only 40% of the revenues that could be tied to their natural resources.
