President Bola Tinubu has revealed the reason for the underdevelopment of African countries in spite of their vast mineral wealth during the African Minerals Strategy Group meeting at the 79th United Nations General Assembly in New York.
“Africa possesses 92 per cent of global reserves of platinum, 56 per cent of cobalt, 54 per cent of manganese and 36 per cent of chromium,” President Tinubu stated.
He attributed Africa’s underdevelopment to the fact that its resources are primarily extracted and exported to foreign countries for refining and manufacturing.
According to President Tinubu, extracting raw minerals without local processing only deepens Africa’s underdevelopment and prolongs its economic challenges.
“This has left the continent at the mercy of foreign markets, forcing it to repurchase finished products at much higher prices.”
“A situation in which the raw minerals are extracted from our countries, exported, refined, and sold to us as finished products merely consolidates the foundations of our misery and pushes us further down the depths of underdevelopment,” President Tinubu said.
The President called on African nations to adopt a new agenda prioritizing local value addition, essential to industrializing the continent and providing sustainable economic growth.
On the evolution of lithium-ion technology, President Tinubu noted, “We live in a world of electronic mobility in which lithium-powered batteries provide higher specific energy, higher energy density, higher energy efficiency, longer cycle life, and longer calendar life.”
“The global need for new battery technology has triggered a new scramble for Africa’s critical minerals.”
President Tinubu further emphasized Africa’s determination to move beyond historical exploitation, advocating for localization of the entire mineral value chain within the continent.
He assured of his administration’s commitment to adding local value to Nigeria’s mineral resources, aligning with the Africa Minerals Strategy Group’s vision.
“We have a vast market of over 226 million people. The success of our $10 billion telecoms market is proof of our growth potential,” President Tinubu said.
“This is evident in the manufacturing of Lithium batteries, concentrates and components to set up their business and domesticate the value chain from extraction to production in Nigeria.”
Minister of Solid Minerals Dele Alake, Chairman of the Africa Minerals Strategy Group, laid out the group’s vision to transform Africa’s mining industry through local value addition and industrialization.
“The traditional model of mineral extraction in Africa, where raw materials are exported for processing abroad, has resulted in the loss of economic opportunities and jobs on the continent,” Alake said.
“This pattern of trade has left African nations vulnerable, as they are forced to import finished goods at inflated prices.”
Alake proposed shifting towards local value addition – processing raw minerals into finished goods within Africa – as a strategy for enhancing economic independence and contributing significantly to GDP.
“Africa’s natural wealth provides a pathway to prosperity if leveraged correctly,” Alake noted.
General Secretary of AMSG, Moses Engadu, called for a new vision and political will among African leaders to ensure value addition becomes a sacrosanct condition for granting mineral licenses to investors.
The roundtable had representatives from investors, development partners, multilateral institutions, and major financial institutions in attendance.
Represented by Vice President Kashim Shettima, President Tinubu’s keynote address stressed the urgent need for Africa to break free from dependency on foreign markets.