KEY POINTS
- Africa’s rare earths are critical for modern tech industries.
- Limited infrastructure challenges Africa’s REE development potential.
- Geopolitical interest grows as Africa could rival China in REEs.
Rare earth elements (REEs) are essential to powering modern technology, from electric vehicles and wind turbines to smartphones, green energy, and advanced defense systems. These 17 vital minerals are essential in creating some of the most valuable technologies in the global economy. Neodymium and dysprosium, for example, help produce the high-performance magnets in wind turbines, while lanthanum is used in the batteries that power hybrid cars. The global market for REEs is valued in the billions, and as demand surges, China currently holds over 60% of the market share according to the U.S. Geological Survey.
Africa holds significant untapped REE deposits, with key reserves in countries such as Burundi, Madagascar, South Africa, Tanzania, and Malawi. Promising projects include the Gakara deposit in Burundi, operated by Rainbow Rare Earths, and Tanzania’s Ngualla project, managed by Peak Resources. A report from Mining Intelligence suggests that if Africa addresses infrastructure and investment challenges, it could become one of the world’s top REE producers, helping diversify the global REE supply chain.
Economic and geopolitical potential of Africa’s REE resources
Africa’s REE deposits could transform its economies, creating revenue streams beyond traditional commodities like oil and copper. With renewable energy usage on the rise, the International Energy Agency reports that REE demand will continue to grow, positioning African nations as key suppliers. REE mining and processing could also create thousands of new jobs, from engineering to logistics and manufacturing. Developing local processing facilities rather than exporting raw materials would enable African countries to capture more economic value, reducing dependency on unrefined exports.
However, significant challenges must be addressed. Infrastructure limitations, such as limited transportation networks, unreliable electricity, and communication barriers, impede efficient mining operations. Political instability in some regions further deters investors, with the African Development Bank noting that firms are often reluctant to take on high operational risks. Environmental issues, including water pollution and resource strain, are also concerns, as some REE extraction methods are water-intensive and may impact local communities.
Africa’s rare earth resources are attracting global interest. The U.S., EU, and Japan are now seeking to diversify REE supplies to reduce dependency on China, and investments in African REE projects are on the rise. The African Continental Free Trade Area (AfCFTA) could play a key role in fostering regional REE trade, building integration, and reducing reliance on non-African markets.
Unlocking Africa’s REE potential requires responsible development through transparent mining regulations and fair trade policies, as outlined in the Africa Mining Vision by the African Union. Building domestic processing capabilities, along with workforce training, will help retain economic benefits within African countries, enabling them to position themselves as significant players in the REE market. With the right partnerships, policies, and infrastructure, Africa could soon meet rising global demand for clean energy and advanced technology, fostering sustainable economic growth across the continent.
