In this final blog of a three-part series, we examine the advantages of regional action in better positioning Africa in the global race for critical minerals and equitable resource-based industrialization. In our first two blogs, we discussed the benefits of a strong partnership between the U.S. and individual African countries, providing specific recommendations for each. In this third blog, we present areas where regional cooperation on the African continent can lead to even better solutions than those achieved through separate country actions alone. The ideas in this blog benefited from two roundtables organized by the Africa Growth Initiative of the Brookings Institution. The advice of African, American, and global experts provided insightful recommendations that influenced the options presented in this blog.

Insufficient Regional Cooperation Is a Drag on the Potential of Critical Minerals for Equitable Resource-Based Industrialization in Africa

Most developing regions suffer from inadequate regional coordination in infrastructure, energy, and standards, resulting in suboptimal trade levels and missed opportunities for faster growth. The IMF has reviewed the opportunities offered by regional integration in Latin America, Asia, and Africa. The IMF estimates that with lower barriers to intra-African trade, real GDP per capita could increase by over 10%, and up to 50 million people could be lifted out of extreme poverty. Enhancing regional integration can produce similar opportunities in the development of the critical minerals processing sector.

For example, mining is an industry that requires lots of energy—it accounts for about 38% of global industrial energy use. Furthermore, mining is a “hard-to-abate” industry, one that can only be decarbonized with major advances and technological innovation. The limited integration of electricity markets in Africa currently makes it difficult to tap into cheaper and low-carbon energy sources for mining operations.

Transportation is a significant barrier to trade in Africa. According to the Infrastructure Consortium of Africa, inadequate road, rail, and port infrastructure adds as much as 30-40% to the cost of intra-regional trade in Africa. The lack of a dense network of regional transportation corridors makes mining and processing operations less attractive and lowers the economic potential of cities and growth poles.

Read the full article about Africa's equitable resource-based industrialization by Ede Ijjasz-Vasquez, Landry Signé, and Vera Songwe at Brookings.