Southern Africa is poised at a unique crossroad – a moment of unparalleled opportunity to leverage its vast reserves of critical minerals to drive not only economic transformation but also a green and sustainable future.
As the world accelerates toward net-zero goals and targets, the demand for rare earth elements and critical minerals such as lithium, cobalt, nickel, and copper are skyrocketing. Southern Africa, with its rich resource base, has a compelling opportunity to position itself as a key player in the global critical minerals value chain.
The stakes are high, and the benefits could be transformative. A strategic and sustainable approach to developing these resources could attract billions of dollars in foreign direct investment (FDI), catalysing infrastructure development, creating thousands of jobs (primary, secondary and tertiary), and foster lasting socio-economic upliftment. The value chain opportunities offer a pathway to economic diversification and long-term economic resilience, turning the finite into the infinite.
But unlocking this potential requires more than the mere extraction of resources. It calls for deliberate integrated development planning, action, strategic collaboration at local, national and regional levels, and a deep commitment to environmental, social, and governance (ESG) principles.
The economic imperative: Building resilience and growth
Beyond extraction and downstream beneficiation, arguably more important is the development and continued exploitation of critical minerals provided to host countries and communities. The foundation for economic diversification supports sustainable livelihoods beyond the mining lifecycle, encompassing mining activities and their related multipliers, such as supply chains and infrastructure. The effect is providing the foundation and a catalyst for socio-economic diversification, adding significant value and long-term resilience to the region's economies.
While the emphasis is always on processing critical minerals locally instead of exporting raw materials, this approach will require substantial investment, must be economically viable, and largely tied to the lifespan of the underlying mineral resource.
There remains a good argument for Southern Africa to be positioned as a hub for beneficiation and manufacturing in the renewable energy and electric vehicle sectors, generating additional revenue, building local expertise and creating higher-value jobs. However, by leveraging mining, its supply chains, and requisite infrastructure, co-investment can be catalysed into, in sectors such as agro-industrial, textile, forestry, energy, tourism and many other economically diverse industries. These industries will ultimately provide more sustainable and resilient economic ecosystems that will survive and thrive beyond life of mine.
Policy coherence: Fostering an enabling environment
Policy inconsistencies across the Southern African Development Community (SADC) member states pose significant challenges to regional collaboration. Harmonised policies that attract investment while safeguarding long-term national interests can foster a conducive environment for cross-border investments by streamlining regulations, creating certainty for investors, and enabling seamless movement of goods and services. A unified regulatory framework is particularly critical for attracting FDI and leveraging the region's collective mineral wealth.
Favourable fiscal regimes, streamlined permitting processes, and clear regulatory frameworks are essential to creating an investor-friendly environment. Moreover, proactive efforts to establish regional value chains – connecting mineral-rich nations to markets, processing hubs, and export routes – can ensure that the benefits of the renewable energy boom are widely shared.
Special Economic Zones (SEZs) offer a platform for economic transformation by incentivising value addition and industrialisation. Establishing cross-border SEZs dedicated to economic diversification, including the beneficiation of critical minerals, can enable shared infrastructure, reduce operational costs, and enhance regional integration. These zones provide opportunities for beneficiation industries, which foster job creation and retain greater value in the beneficiary region.
Collaboration: The African critical minerals alliance
Critical minerals transcend national boundaries, demanding cooperation across governments, industries, and stakeholders. Effective collaboration can enhance infrastructure development, improve trade networks, and attract the investment needed to unlock the region's mineral potential. Mining companies, policymakers, and private investors must work together to integrate value chains, from extraction to refining and manufacturing.
Regional cooperation will be pivotal to Southern Africa's success. The recently established African Critical Minerals Alliance provides an important platform for harmonising policies, pooling resources, and fostering joint ventures. By leveraging collective expertise and economies of scale, member nations can address common challenges, such as infrastructure development, capacity building, and securing global market access.
Collaboration also offers a buffer against geopolitical risks. As global critical mineral supply chains aim to diversify, Southern Africa can position itself as a stable, reliable, and ethical source of these resources. By presenting a unified front, the region can negotiate better terms with international investors and ensure that the benefits of its resources are equitably distributed.
The sustainability mandate: Mining for a better future
Sustainability must be at the heart of Southern Africa's critical minerals strategy. The mining industry faces increasing scrutiny from global investors, regulators, and consumers who demand adherence to stringent ESG standards. This is not merely a reputational concern – it is a commercial imperative that is fast gaining the legal backing to enforce accountability. Mining operations that fail to integrate sustainability into their core practices risk exclusion from global supply chains, as well as legal and operational repercussions, particularly in the critical minerals sector.
The strengthening of legislative efforts so that climate change mitigation and adaptation measures are implemented by governments and the private sector presents additional challenges, such as the EU's Carbon Border Adjustment Mechanism, but also opportunities for the entire mining value chain.
Similarly, international markets are placing increasing emphasis on human rights and environmental concerns linked to the extraction of critical minerals in Southern Africa's ‘high risk’ regions. These include land dispossession and inadequate compensation, unfair working conditions, occupational health and safety hazards, fatal incidents, and harassment and intimidation of human rights defenders, among others.
For Southern Africa, this means adopting cutting-edge technologies to minimise the negative ecological footprint of mining operations, including reducing greenhouse gas emissions, managing water use responsibly, and rehabilitating environmental impacts. However, this should be approached with a focus on achieving dual long-term sustainable outcomes. For example, designing mines and their associated infrastructure to benefit the mine and long-term needs of host communities and countries simultaneously. This approach can drive co-investment, facilitate economic diversification, and consider opportunities to repurpose mining infrastructure after the mine's lifecycle.
By doing so, mining companies facilitate socio-economic sustainability, reducing not only the long-term cost of their operations by no longer acting as the sole source of financing while serving as the foundation and catalyser for co-investment. Such action also reduces the significant socio and political risks often associated with such projects. By collaborating with host communities, host governments, potential co-investors, NGOs and other key stakeholders in a non-paternalistic manner through exploration, mine planning and development, an equitable sharing of benefits may be achieved.
Host countries and communities derive significant benefits from mining activities, both directly and indirectly, through equitable revenue sharing, economic diversification, community development initiatives, sustainable employment, and business opportunities. These economic opportunities are further enhanced by commitments to environmental conservation, the preservation of cultural heritage, and the protection and promotion of fundamental human rights.
The role of governments in ensuring transparent governance, procurement and revenue management practices cannot be overstated. Mechanisms such as sovereign wealth funds and transparent reporting systems can help ensure that supply chains are monitored and resource revenues are invested in long-term national priorities, from education to infrastructure, rather than lost to corruption or mismanagement.
Bridging the infrastructure gap: A strategic opportunity
One of the most significant challenges to unlocking Southern Africa’s critical minerals is the region's infrastructure deficit. Transport bottlenecks, insufficient energy capacity, and inadequate digital infrastructure all threaten to limit the region's competitiveness in global markets.
Herein lies a strategic opportunity. Governments and the private sector must forge public-private partnerships (PPPs) to build the infrastructure necessary to support a thriving critical minerals sector.
For instance, renewable energy projects could provide dual benefits – powering mining operations while contributing to national energy grids, fostering broader economic growth. Strategic investments in rail and port facilities can help streamline mineral and other exports, ensuring that Southern Africa becomes a reliable supplier in global markets.
Seizing the moment: A call to action
The window of opportunity for Southern Africa to establish itself as a leading player in the global critical minerals market is narrow. Competing regions, including South America and Southeast Asia, are also vying for dominance. Southern Africa’s ability to attract investment, build infrastructure, and deliver on ESG promises will determine its success.
This is not just about mining. It is about harnessing the region’s resource wealth to foster green, inclusive growth. By acting with urgency, Southern Africa can redefine its role in the global economy not as a supplier of raw materials but as a driver of sustainable innovation and development.
The journey will be challenging, requiring political will, corporate responsibility, and community buy-in. But the reward – a more prosperous, resilient, and sustainable Southern Africa – is well worth the effort. The critical minerals beneath the region’s soil are not merely an economic opportunity; they are the foundation of its sustainable future.
As industry leaders, policymakers, and stakeholders gather at Mining Indaba 2025, the message must be clear: Southern Africa’s time is now. With a unified vision and collective action, the region can transform its resource endowment into a legacy of shared prosperity for generations to come.
- Article by Bruce Dickinson, Nomsa Mbere, and Paula-Ann Novotny, partners at Webber Wentzel,
