COMMENT • sharyn @ interactmedia . co . za
Sharyn Macnamara – Editor •
AFRICAN OPPORTUNITY AMID GLOBAL TURMOIL
I
write my comment just as Davos 2025 , the World Economic Forum ( WEF ) 2025 annual meeting , is scheduled to take place from January 20 – 24 , 2025 in Davos-Klosters , Switzerland . The 54th annual meeting will bring together more than 2 500 leaders and stakeholders from various sectors and industries to discuss pressing global challenges . At the same time , Africa is preparing for the Investing in African Mining Indaba 2025 conference which has become a pivotal event for mining professionals , investors , global governments and industry leaders looking to capitalise on the vast opportunities in Africa ' s mining sector .
Unfortunately , once again this year the global economic outlook remains uncertain . WEF points out before the annual discussions in Davos that the continued “ after-effects of the pandemic , Russia ' s invasion of Ukraine and broader geopolitical friction have disrupted trade , fuelled political instability and aggravated social tensions . However , there are some promising signs . Innovative technologies like renewable energy and automation may unlock broad new avenues for growth and productivity gains .” 1
What could global instability mean for Africa ? The combined effects of the seemingly never-ending Russian war in the Ukraine ; together with the election of the unpredictable President Trump in the USA ( not to mention imminent potential trade wars with competitors to the US , like China ); added to the political uncertainty in the European Union ' s two biggest economies – France and Germany ; and more , do not bode well for supply chains and the cost of goods in Africa . 2 All this , while , on the other side of the proverbial coin , China ’ s ties to the continent and the expanding BRICS block offer new economic opportunities .
“ Collaboration in the intelligent age ” Despite “ increasing geopolitical polarisation and divisions over values wreaking havoc on communities around the world – at the same time , innovation and the use of rapidly advancing technologies offer an unprecedented opportunity to improve productivity and standards of living ,” notes McKinsey . “ Responding to such profound forces of change requires a new commitment to collaboration ." To this end the delegates of Davos 2025 “ will explore a range of themes : for example , identifying new sources of growth in the global economy , transforming industries in the intelligent age , investing in human development , building on actions to address climate change , and collaborating on solutions to both international and regional problems .” 3
Africa – at the precipice of a new era On the domestic front things are looking up slightly . Shifts in politics in 2024 , like long-standing , dominant powers losing their grip in Senegal , Ghana and Botswana ; Namibia ’ s SWAPO losing by a narrow margin ; and South Africa ' s African National Congress forced into a coalition government for the first time in the nation ' s democratic history could mean that democracy is finally working , while disputed elections in Mozambique make for a wobbly start to 2025 . This year 11 African nations will face major elections , including Cameroon , the Central African Republic , Egypt , Ivory Coast , Tanzania and Togo .
With this context in mind and during this time of global uncertainty , the Mining Indaba has pointed out that Africa must leverage its vast mineral wealth to redefine its global standing . “ The continent is home to sizeable reserves of what the world currently defines as critical minerals : 55 % of cobalt , 47.65 % of manganese , 21.6 % of natural graphite , 5.9 % of copper , 5.6 % of nickel , 1 % of lithium and 0.6 % of iron ore . 4
“ Navigating this complex geopolitical terrain requires strategic action . Intra-African co-operation and a comprehensive mineral governance framework , such as the African Green Minerals Strategy , are crucial for strengthening the continent ' s bargaining power and ensuring its central role in the global energy transition and green technology value chain … While , the African Continental Free Trade Area ( AfCFTA ) provides a platform for regional integration and the development of integrated supply chains 5 potentially reducing reliance on external partnerships and promoting sustainable development within the African mining sector .”
“ Africa ' s mineral wealth is its own destiny to shape ” Laura Nicholson , head of head of Content & Strategic Partnerships for Mining Indaba , emphasises , “ If African nations continue only supplying raw minerals , they will miss out on the real economic benefits of the mineral boom . Thus , we must no longer simply supply the world ' s transition ; we must lead it . Mining Indaba 2025 marks the turning point – where Africa redefines critical not by global demands , but by its own needs , its own vision of prosperity ." ⁴
Sharyn Macnamara
References :
1 . https :// intelligence . weforum . org / topics / a1Gb0000001hXcwEAE 2 . https :// www . dw . com / en / what-could-global-turmoil-mean-for-africa-in-
2025 / a-71203243 ? mc _ cid = 11f68c5899 & mc _ eid = 9a831e2ba7
3 . https :// www . mckinsey . com / featured-insights / mckinsey-explainers / whatis-davos ? cid = omcknsl-eml-nsl--mck-ext----- & hlkid = 37aecff8c81948e09 48c816ec4f48a1f & hctky = 14283285 & hdpid = a529efb3-37c6-4926-a0c0- 4f3ab7f20464
4 . https :// www . africanmining . co . za / 2025 / 01 / 21 / africas-vast-mineralwealth-must-redefine-the-continents-global-standing /
5 . https :// www . africanmining . co . za / 2024 / 02 / 01 / impact-of-the-afcftaagreement-on-mining-sector-trade-alliances /# prId = 326610
www . africanmining . co . za African Mining Publication African Mining African Mining • February 2025 • 3