WEF urges Africa to unite on critical minerals investment

The World Economic Forum (WEF), in collaboration with the Development Bank of Southern Africa, is urging countries in the region to form a unified front to unlock investment in critical minerals. According to the Club of Mozambique, the joint report, published on Friday, argues that a cohesive strategy is essential to harmonise regulations, build investor confidence and accelerate the creation of local value chains. The Democratic Republic of Congo (DRC), Zambia and Zimbabwe hold some of the world’s largest reserves of battery metals. Yet, regulatory instability, outdated transportation links and low local processing capacity have kept the region reliant on exporting raw materials. Experts warned that without co-ordination, Southern Africa will remain a supplier at the bottom of the value chain. Competition for foreign investment has fuelled a ‘race to the bottom’, with governments offering tax breaks and looser environmental rules to attract mining majors. Forum participants urged the creation of a regional framework to harmonise regulations, share infrastructure, and develop joint ventures that prioritse long-term development. Infrastructure and value-addition were highlighted as key levers. With global demand for critical minerals poised to surge, Southern Africa presents a rare opportunity to redefine its role in global supply chains and establish itself as a hub for sustainable growth. Although the sub-region holds a significant portion of the world’s critical mineral reserves, including over half of the global cobalt supply in the DRC, it struggles to attract sufficient financing. The vast potential in countries like Zambia, Botswana, South Africa, Namibia, Mozambiqu, and Madagascar remains largely untapped. In 2024, Africa accounted for only 10.4% of global exploration spending.