*President Bola Ahmed Tinubu, at the African Minerals Strategy Group鈥檚 meeting on the sidelines of the ongoing UNGA79, in New York, emphasises the urgent need for the Africa to break free from its dependency, asserting that the extraction of raw minerals without local processing only deepens the continent鈥檚 underdevelopment and prolongs its economic challenges

Isola Moses | 绿帽献妻

President Bola Ahmed Tinubu has cautioned against the dire consequences of Africa’s long-standing profile as a mere supplier of raw minerals to countries of other continents of the world.

Tinubu made this observation while delivering his keynote address titled, “Africa’s Natural Resources Shaping the Future”, Wednesday, September 24, 2024, during the African Minerals Strategy Group (AMSG) meeting on the sidelines of the ongoing 79th Session of the United Nations General Assembly (UNGA79), in New York, United States (US).

The Nigerian leader asserted that extracting raw minerals from Africa has continued to keep the continent in a state of poverty, making it even more underdeveloped.

Tinubu also pointed out that while Africa holds a significant portion of the world’s mineral reserves, including 92 percent of global platinum, 56 percent of cobalt, and 54 percent of manganese, and these resources have been primarily extracted and exported to foreign countries for refining and manufacturing.

Represented by Vice-President Kashim Shettima at the global forum, President Tinubu emphasised the urgent need for the African continent to break free from this dependency.

Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications (Office of the Vice-President) Wednesday also stated President Tinubu averred that the extraction of raw minerals without local processing only deepens Africa’s underdevelopment and prolongs its economic challenges.

The President further explained that the raw materials export trajectory has left the African continent at the mercy of foreign markets, forcing it to repurchase finished products at much higher prices.

Tinubu noted: “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.鈥�

The Nigerian leader, therefore, urged African countries to adopt a new agenda that prioritises local value addition, which he sees as essential to industrialising the continent and providing sustainable economic growth.

In regard to the evolution of lithium technology, President Tinubu as well explained the development has enabled the swift production and manufacturing of portable consumer electronics, such as laptops, computers, cellular phones, and electric cars.

“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.

鈥淭he global need for new battery technology has triggered a new scramble for Africa鈥檚 critical minerals,鈥� stated he.

Tinubu also said: 鈥淎frica possesses 92 percent of global reserves of platinum, 56 percent of Cobalt, 54 percent of Manganese and 36 percent of Chromium.

鈥淭hese are the minerals employed in the manufacturing of the new batteries. In short, the world needs Africa today more than ever.鈥�

The President emphasised Africa’s determination to move beyond the historical exploitation of its resources, advocating the localisation of the entire mineral value chain within the continent.

Tinubu also assured of his administration鈥檚 commitment to adding local value to Nigeria鈥檚 mineral resources as part of the Africa Minerals Strategy Group’s vision chaired by Dr. Oladele Alake, Nigeria’s Honourable Minister for Solid Minerals Development.

Referencing Nigeria鈥檚 vast market of over 226 million people, President Tinubu said the success of the country’s $10billion telecoms market is proof of its growth potential 鈥渋n the manufacturing of Lithium batteries, concentrates and components to set up their business and domesticate the value chain from extraction to production in Nigeria.”

He affirmed that the AMSG is focused on transforming Africa from a supplier of raw materials into a global mining industry stakeholder.

Speaking at the forum also, Dr. Alake, Nigeria鈥檚 Minister for Solid Minerals Development, who also spoke at the event in his capacity as the Chairman of the Africa Minerals Strategy Group, highlighted AMSG鈥檚 vision to transform Africa鈥檚 mining industry through local value addition and industrialisation.

The Minister criticised the traditional model of mineral extraction in Africa, where raw materials are exported for processing abroad, resulting in lost economic opportunities and jobs on the continent.

According to him, this pattern of trade has left African nations vulnerable, as they are forced to import finished goods at inflated prices.

Alake as well proposed a shift towards local value addition鈥攑rocessing raw minerals into finished goods within Africa鈥攁s a strategy for enhancing the continent’s economic independence and contributing more significantly to its GDP.

He stated: “We are moving from commercialisation to industrialisation. By processing and manufacturing raw minerals into finished goods, we can increase employment, reduce our reliance on imports, and ultimately raise the contribution of the solid minerals sector to our GDP,” Alake said.

The Chairman of AMSG further acknowledged that although the African continent faces significant developmental challenges, its natural wealth provides a pathway to prosperity if leveraged correctly.

Setting the tone for the important conversation on how Africa’s natural resources should benefit the people, reduce poverty and create wealth for the people of the continent, Mr. Moses Michael Engadu, General Secretary of AMSG, advocated a new vision and political will among African leaders to ensure value addition becomes a sacrosanct condition to granting mineral license to any investor.

The roundtable had representatives from investors, development partners, multilateral institutions and major financial institutions in attendance, Nkwocha added.

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