UN: Africa can become participant in global supply chains by harnessing rich minerals

Nairobi, Kenya |  Xinhua |  Africa can become a major participant in global supply chains by harnessing its abundant minerals that are needed by high-technology sectors, the UN said in a report released in Nairobi, the Kenyan capital, on Wednesday.

The report by the UN Conference on Trade and Development (UNCTAD) says Africa has an enormous stock of critical minerals and metals, including aluminum, cobalt, copper, lithium and manganese that are vital for global supply chains.

“Key players and stakeholders are looking to strengthen the resilience of existing supply chains by diversifying their sources. This may create an opportunity for African economies to heighten their involvement in global supply chains,” says the Economic Development in Africa Report 2023.

According to the findings, global supply chains have come under immense pressure as a result of unprecedented trade turbulence, economic uncertainty, geopolitical events and natural disasters.

The report indicates that Africa, which boasts an abundant supply of raw materials with utility in the energy, automotive and electronics sectors, could provide an opportunity for the diversification and resilience of global supply chains by offering a new regional market for businesses and industries in their quest to further expand their supply chain relationships.

The analysis shows that as multinational companies seek to extend their supply chains into diverse regions, African countries could become potential sources of high-technology mineral resources along shorter and simpler supply chains, with the added effect of contributing to the stable development of emerging industries on the continent.

Rebeca Grynspan, UNCTAD secretary-general, said that Africa accounts for 48 percent of global cobalt reserves and 47.6 percent of global manganese reserves, which are critical metals required to produce batteries and electrical vehicles.

Grynspan added that diversified supply chains generate significant economic benefits for the countries they connect, reduce inflationary pressures, contribute to increased stability and prosperity worldwide, and open new domestic and regional markets.

“We believe that such a perspective for supply chain diversification provides new opportunities for African economies to position themselves as geographic alternatives and optimize their strategic value for future leading-edge supply chains,” she revealed. ■