In today’s world, however, African countries are beginning to take hold of their own futures and grow their own wealth through their resources. The second-largest mineral industry in the world is the mineral industry of Africa, which implies large quantities of resources due to Africa being the second largest continent, with 30.37 million square kilometres of land.
With a population of 1.4 billion living there, mineral exploration and production constitute significant parts of their economies for many African countries and remain keys to economic growth. Africa is richly endowed with mineral reserves and ranks first in quantity of world reserves for bauxite, cobalt, industrial diamond, phosphate rock, platinum-group metals (PGM), vermiculite, and zirconium.
Facts & Figures
Africa is home to some 30 percent of the world’s mineral reserves, eight per cent of the world’s natural Gas and 12 per cent of the world’s oil reserves. The continent has 40 percent of the world’s gold and up to 92% of global platinum, 56% of cobalt, and 54% of manganese. It holds 65 per cent of the world’s arable land and ten percent of the planet’s internal renewable fresh water source.
- Mineral Reserves – 30%
- Natural Gas – 8%
- Oil Reserves – 12%
- Gold – 40%
- Platinum – 92%
- Cobalt – 56%
- Manganese – 54%
- Arable land – 65%
- Internal renewable fresh water source- 10%
In most African countries, natural capital accounts for between 30 percent and 50 percent of total wealth. Over 70 per cent of people living in sub-Saharan Africa depend on forests and woodlands for their livelihoods. Land is an economic development asset as well as a socio-cultural resource. A significant share of these resources is, however, used unsustainably while others are lost through illegal activities, meaning that the stream of benefits generated from these resources is being reduced over time. For instance, Africa loses an estimated USD 195 billion annually of its natural capital through illicit financial flows, illegal mining, illegal logging, the illegal trade in wildlife, unregulated fishing and environmental degradation and loss.
Africa’s two most profitable mineral resources are gold and diamonds. In 2021, Africa produced 680.3 metric tons of gold. Africa also dominates the global diamond market. The continent produces around 65 percent of the world’s diamonds by value each year.
Top minerals per country
- Petroleum and coal are among the most abundant minerals for 22 out of Africa’s 54 countries. As of 2019, Nigeria produced most of the continent’s petroleum (25 percent), followed by Angola (17 percent), and Algeria (16 percent).
- Metals including gold, iron, titanium, zinc and copper are the top produced minerals for 11 countries. Ghana is the continent’s largest producer of gold, followed by South Africa and Mali.
- Industrial minerals such as diamonds, gypsum, salt, sulphur and phosphates were the main commodity for 13 African countries. The DRC is Africa’s largest industrial diamond producer, followed by Botswana and South Africa. Botswana ranks number one in Africa for the production of gem-quality diamonds – used for jewelry.
Petroleum and coal – 22 out of Africa’s 54 countries.
Petroleum Production %
- Nigeria – 25 percent
- Angola – 17 percent
- Algeria – 16 percent
Metals – 11 out of Africa’s 54 countries.
Largest Gold Producing Countries
- Ghana
- South Africa
- Mali
Industrial minerals – 13 out of Africa’s 54 countries.
Top Diamond Producing Countries
- DRC
- Botswana
- South Africa
Mineral wealth
At $125bn per year, South Africa generates the most money from its mineral resources. Nigeria comes in second with $53bn per year, followed by Algeria ($39bn) Angola ($32bn) and Libya ($27bn). These five countries produced more than two-thirds of the continent’s mineral wealth.
Top Five countries Mineral wealth per year
- South Africa- $125bn
- Nigeria – $53bn per year
- Algeria – $39bn
- Angola – $32bn
- Libya – $27bn
The challenge is that a very limited amount of Africa’s critical minerals is processed on the continent. China is the dominant player in the processing of mineral ores, refining 73% of cobalt, 40% of copper, 59% of lithium, and 67% of nickel. A large share of these minerals is imported in unprocessed form from elsewhere, including Africa. China also dominates green technology value chains, producing over 80% of the world’s solar panels, and over 70% of the world’s lithium-ion battery cells.
China is the dominant player in the processing of mineral ores.
- Cobalt – 73%
- Copper – 40%
- Lithium – 59%
- Nickel – 67%
China also dominates green technology value chains
- Solar panels – 80%
- Lithium-ion battery cells – 70%
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Sources: United Nations Environment Programme (UNEP); Wikipedia; South African Institute of International Affairs (SAIIA); National Geographic Society; Al Jazeera.
