Africa seeks to boost mineral wealth through local processing and sovereign funds

African leaders are advocating for a shift from exporting raw minerals to establishing local processing capabilities to capture more value from the continent’s estimated $29.5 trillion in mineral wealth. With global demand for battery metals like lithium and cobalt expected to surge, officials emphasize that moving up the value chain is essential to combat extreme poverty and ensure long-term economic stability.

Tanzania is implementing this strategy by mandating local processing for minerals such as gold and graphite. This approach contributed to a 20% increase in mineral exports in 2025, reaching $2.5 billion. However, challenges such as high energy costs and power shortages remain significant obstacles to industrialization.

To manage resource revenues and mitigate the volatility of commodity prices, many African nations are increasingly utilizing sovereign wealth funds. These funds, such as Nigeria’s Sovereign Investment Authority and Ethiopia’s Investment Holdings, are shifting from simple stabilization tools to broader development mandates, investing in infrastructure, energy, and agriculture to build lasting assets beyond finite natural resources.