Critical minerals industry stakeholders on November 7 launched the Critical Minerals Africa Group (CMAG), with the aim of strengthening relationships between Africa and global markets, empowering companies operating in Africa’s critical minerals space and unlocking the continent’s full critical minerals potential.

Sub-Saharan Africa is believed to be home to about 30% of the volume of proven critical minerals reserves globally.

The International Energy Agency predicts that, as markets around the world place an ever-greater emphasis on green technology, demand for nickel will double, demand for cobalt will triple and demand for lithium will rise tenfold, the CMAG points out.

If harnessed properly, the International Monetary Fund estimates that increased commodity revenues alone could increase sub-Saharan Africa’s GDP by 12% or more by 2050, it cites.

The CMAG avers that, despite the continent’s role in the global critical minerals industry, African policymakers, business leaders and citizens struggle to influence vital discussions around policy and supply chains.

Moreover, it posits that global business looking to capitalise on opportunities face high barriers to entry owing to a lack of relationships on the continent and limited local knowledge.

The CMAG says that, therefore, its mission is to foster deeper relationships between Africa and global markets and, thereby, enable the creation of resilient and diversified critical minerals supply chains that benefit the communities in which they are extracted, as well as to accelerate economic development through the capture of value-adding activities.

The CMAG says it will also work with industry and governments to help remove barriers to market entry across sub-Saharan Africa, create more enabling business environments, promote sustainable growth and localisation of benefits, and support the creation of green value chains on the continent.

The group aims to act as a bridge between the private and public sectors, while enabling greater interconnectivity with Western markets.

The CMAG team will offer members access to funding and networking opportunities; advocate for CMAG members in discussions with governments, regulators and other stakeholders; and provide messaging and branding support to members.  

“I am delighted to be part of a world-class team determined to foster deeper relationships between Africa and global markets and put Africa at the heart of international discussions surrounding critical minerals and associated supply chains,” says CMAG CEO Veronica Bolton Smith.

“There is a huge opportunity for African businesses and governments to become global leaders in an industry which is of ever-increasing significance to the world economy, something that would be to the benefit of communities across the continent.

“There is an equally large opportunity for international firms to ramp up their exposure to African markets and capitalise on the enormous growth potential Africa offers. The CMAG has been launched to empower these stakeholders with the tools, knowledge and relationships they need in order to succeed,” she adds.