Keypoints:
- US overtakes China in African investments
- Nations urged to negotiate fairer mineral deals
- New refineries signal shift to local processing
MOST gadget users seldom consider the device in their hands beyond its sleek design or smooth performance. Yet the minerals and metals powering it lie at the centre of a fierce global contest between the United States and China — one that places Africa, rich in these essential resources, directly in the crossfire.
Critical minerals: Africa’s new frontier
The continent holds vast reserves of critical minerals such as lithium, cobalt, tungsten, and rare earth elements—essential for manufacturing smartphones, electric vehicles, and AI data centres. They are also vital for modern defence systems, making control over their supply chains a matter of national security for global powers.
China has long dominated the sector. Its influence stretches beyond its domestic reserves, extending deep into Africa through decades of mining investments and infrastructure projects. Beijing’s lead in mineral processing has given it near-monopoly status, prompting anxiety in Washington over supply chain vulnerabilities.
US surges ahead in Africa investments
In a striking shift, recent data from the China Africa Research Initiative at Johns Hopkins University shows that the United States has overtaken China as Africa’s largest foreign investor for the first time since 2012. In 2023, US foreign direct investment reached $7.8bn, compared to China’s $4bn.
This renewed US push is largely spearheaded by the US International Development Finance Corporation (DFC), created during President Donald Trump’s first term in 2019. The agency openly states that it was established to ‘counter China’s presence in strategic regions’, marking a significant turn in Washington’s approach to African engagement.
Partnerships on African soil
The DFC has channelled funds into projects across the continent, including a $3.9m grant to Rwanda’s Trinity Metals to expand its tin, tantalum, and tungsten operations. Trinity’s chairman, Shawn McCormick, praised the US partnership, noting that the company now exports tungsten to a processing plant in Pennsylvania and plans similar shipments for tin.
McCormick insists the company’s export decisions are commercially driven, not politically influenced. ‘This was not the US government telling us where to send our tungsten,’ he said. ‘We chose this route because it made business sense.’
Trinity Metals is partly owned by the Rwandan government and backed by TechMet, an Irish critical minerals investment firm. McCormick stresses that responsible mining remains central to the company’s operations. ‘We’ve shown that it’s possible to produce these materials in a conflict-free, child-labour-free, and environmentally responsible way that creates jobs and pays taxes,’ he added.
Africa’s bargaining challenge
While the influx of US investment offers new opportunities, African economists warn that the continent must approach such partnerships with strategic caution.
Sepo Haihambo, a Namibian economist and former FNB executive, argues that African negotiators must be proactive. ‘To expect Americans to turn up and negotiate in Africa’s best interests would be unrealistic,’ she said. ‘African countries must define their priorities clearly before entering talks.’
‘To expect Americans to turn up and negotiate in Africa’s best interests would be unrealistic’
Haihambo suggests moving away from simple cash-for-minerals agreements toward frameworks such as production-sharing contracts, joint ventures, and local equity participation. These, she said, would allow countries to channel profits into national development funds supporting education, healthcare, and infrastructure.
She also called for more mineral processing to take place within Africa rather than exporting raw ores. ‘The real value lies in refining and manufacturing,’ she noted. ‘That’s how Africa can truly benefit from its resources.’
US companies look to local refining
Some American firms appear to be heeding that advice. One of them is ReElement Africa, a subsidiary of American Resources, which is constructing a critical minerals refinery in South Africa’s Gauteng province.
Ben Kincaid, ReElement’s CEO, said the company’s approach aims to ensure that value creation happens close to the source. ‘It’s rewarding to build refining facilities alongside mining projects,’ he said. ‘That way you can upskill local labour, build sustainable economies, and lay the foundation for industrial growth.’
This shift toward on-continent processing could help Africa reduce its dependence on exporting unprocessed minerals — a pattern that has long undermined the region’s industrial ambitions.
‘The real value lies in refining and manufacturing, that’s how Africa can truly benefit from its resources’
Policy missteps and global competition
However, not all analysts are convinced Washington’s strategy is coherent. Professor Lee Branstetter of Carnegie Mellon University argues that some of the US government’s own trade policies have undermined its standing.
‘The Trump administration’s decision to impose tariffs on African exports discouraged engagement,’ he said. ‘Had those tariffs not been applied so broadly, the United States might have been in a better position to benefit from African frustration with Chinese projects.’
He believes that while the US is regaining ground through investment, China’s entrenched influence — built on decades of state-backed financing — remains formidable.
New players on the horizon
Beyond the US-China rivalry, Africa’s critical minerals boom is drawing new interest from other nations eager to secure access to strategic materials. Haihambo notes that countries like Brazil, India, and Japan are quietly expanding their footprints on the continent.
This growing competition could give African nations leverage to negotiate better deals — if they coordinate and strengthen governance around resource management.
‘Africa needs to act collectively,’ Haihambo urged. ‘Only then can it ensure that its mineral wealth translates into long-term prosperity for its people.’
As global demand for energy transition minerals intensifies, the continent’s role is more pivotal than ever. Whether Africa becomes a mere supplier or a full partner in the global green economy will depend on how it navigates this new phase of great-power rivalry.
