By Abdulwasiu Hassan
On July 27, Ghana’s cabinet decided to ban the export of unprocessed minerals like lithium following the trend of several other African nations taking similar measures as part of a shared strategy to maximise returns from their natural resources.
Ghana's new policy, which is expected to be passed into law by the end of 2023, aims to "retain a significant proportion of the value chain" before a product is rolled out for export, according to the country's minister of land and natural resources, Samuel A. Jinapor.
Namibia's cabinet made a policy decision based on the same premise a month before Ghana did, albeit with some leeway.
"Smaller quantities of these minerals may be allowed for export at the discretion of the minister of mines and energy, and subject to the cabinet's endorsement," Namibia's deputy minister of information and communication technology, Emma Theofelus, said.
In December 2022, Zimbabwe took a similar step regarding export of unprocessed lithium. A circular put out by the southern African country's ministry of mines and mining development said the move was meant to realise President Emmerson Mnangagwa's "vision of seeing the country becoming an upper middle-income economy".
Global green shift
It isn't a coincidence that African countries rich in minerals like lithium, a key component of batteries, are realigning their export strategies when governments in the developed world are pushing for a shift towards green technology, prompting the major automakers to focus on electric vehicles.
The UK, for instance, decided years ago to ban the sale of new petrol and diesel vehicles by 2030. The European Union's ban on sale of new cars that emit CO2 will kick in by 2035.
Some companies have already fixed the dates they will stop producing internal-combustion engines, focusing only on electric vehicles powered by energy-efficient batteries. Besides lithium, these batteries need cobalt, a metal Africa is rich in.
Competing with China
China is the dominant player in processed lithium, and other developed countries are looking for lithium sources to compete with it in the new energy race.
Zimbabwe has 1.2% of the world's proven lithium reserves, according to the 2021 BP Statistical Review, while the US and China have 4.0% and 7.9% respectively.
Lithium deposits continue to be discovered in other African countries. In 2022, Nigeria announced the discovery of high-grade lithium in several states of the country.
"Nigerian lithium is a hot cake now. The high-grade mineral was discovered in several parts of the country during the course of the national integrated mineral exploration project," says Abdulrazak Garba, director general of the Nigerian Geological Survey Agency.
"The worldwide standard for high grade in exploration and mining starts from 0.4 per cent lithium oxide. When we started exploration and mining, we saw up to 13 per cent lithium oxide content."
Policy spin-offs
As lithium-rich African countries try to make the most of Western interest in using the continent's resources to catch up with China in lithium supply, can the ban on export of raw lithium help?
Analysts have divergent views on this. While some believe it can spur the growth of processing plants in the continent, others apprehend that the strategy might lead to a reduction in the volume of trade in lithium.
"Foreign investors will be forced to set up processing plants here in Africa. This will automatically create job opportunities for Africans," Abdullahi Lawal, a senior geologist based in Nigeria, tells TRT Afrika.
The caveat is that this benefit will be limited to African countries not burdened by high insecurity.
"In African countries with high levels of insecurity, foreign investors may not want to establish processing plants," Abdullahi points out.
According to some economists, this could even stifle trade with African partners since a country that has banned export of such minerals wouldn't allow these to be sent to another African nation with battery-producing plants that require lithium.
"African countries banning export of raw green minerals like lithium and cobalt does not augur well for intra-African trade," Idakolo Gabriel Gbolade of SD&D Capital Management Ltd tells TRT Afrika.
Some analysts are, however, optimistic that the policy will succeed in the long run, provided those in charge do not mess with the larger goal.
"It may take a while, but the economy will improve as long as the leadership are doing right by their people," says Abdullahi.
He believes control on trade in green minerals would ultimately put Africa in the driving seat regarding the Western world's energy needs.
"Most of the raw materials used for the development of green technology are sourced from Africa. The continent deciding to dictate the pace of import and export of such materials would make it an unstoppable force."
Looking inward
Instead of merely reacting to the raw-material demands of automakers abroad, some experts believe that African countries should look inward to chart a better course for renewable energy development.
"I believe that African countries should be able to look inward to be able to grow their potential," says Idakolo.
He advises African governments to use renewed Western interest in the continent's raw materials to improve their capacity in mining.
Execution hitches
African countries don't lack in policy-making, but for many, implementation remains a problem.
For every policy discouraging the export of raw minerals, experts believe certain supplementary steps need to be taken so that the African people can get more out of their resources.
They could start by forcing foreign investors to set up their processing and manufacturing plants in Africa. They could also sign MoUs linking export to debt servicing with countries interested in these resources.
"For example, Nigeria owes China much money, and China is interested in our lithium. Nigeria can sign an MOU with China that will detail the payback of such debt in the form of the amount of lithium being exported," explains Abdullahi.
