Africa’s Mineral Processing Ambitions Stalled by Persistent Energy Shortages

POLICY WIRE — Johannesburg, South Africa — African nations are aggressively pursuing strategies to transition from raw material exporters to hubs for mineral refining and smelting. While this shift aims to capture greater economic value, government and industry leaders warn that a lack of affordable, consistent electricity remains a significant barrier to attracting necessary capital.

Mzila Mthenjane, CEO of the Minerals Council South Africa, emphasized the gravity of the situation, stating, The number one lesson is how important energy supply reliability and affordability are to industrialisation.

The push for domestic processing comes as global demand for critical minerals surges, fueled by the transition to clean energy and rapid digitization. U.S. Treasury Deputy Assistant Secretary for Investment, Energy and Infrastructure Jeremy Wiggins noted at the Ministerial Forum on Critical Minerals, Value Chains and that these resources could serve as a cornerstone for industrial transformation if countries successfully develop local manufacturing and energy systems.

Despite the continent’s vast mineral wealth, Africa currently struggles to monetize its reserves effectively, which widens the regional development financing gap. A report released by the World Economic Forum on 29 August 2025 highlights that while global interest in African exploration is rising, the region must address specific financing hurdles to meet the world’s low-carbon technology needs.

For resource-rich African countries, the current landscape represents a pivotal moment. Policymakers are now tasked with adapting strategies to leverage their mineral endowments for long-term economic development, provided they can overcome the persistent infrastructure deficits that threaten to undermine their industrialization goals.

Reporting by Policy-Wire (PW)