Thread by @MimiReeds

Africa should take full advantage of current elevated prices to cash in on mineral wealth: The African continent is home to substantial reserves of #copper and #cobalt (in the Democratic Republic of the Congo—DRC—Zambia, South Africa and Zimbabwe), #diamonds (in Botswana and…

Angola), #platinum (in South Africa and Zimbabwe), #uranium (in Namibia, Niger and South Africa), #gold (in Ghana, South Africa and Sudan), #iron (in South Africa), #manganese (in South Africa, Gabon and Ghana), bauxite (in Guinea), #lithium (in Zimbabwe), #coal (in South Africa

and Mozambique), #naturalgas (in Algeria, Egypt and Nigeria) and #petroleum (in Nigeria, Angola, Algeria and Libya).

#Africa contains about 12% of total global #oil reserves, 12% of natural gas reserves, more than 80% of platinum group metals and more than 40% of the world's gold. Extraction of Africa's reserves has been largely hindered by weak domestic governance structures and policy

impediments, alongside the high risk of #investments in Africa and low #commodity prices during 2016‑20. This has resulted in a notable shortage of #exploration activity in the African #mining sector.

However, many African commodity exporters—Zambia and Namibia in particular—have initiated procedures to create a business-friendly environment in order to attract investments into their domestic mining sectors. Elevated commodity prices are fuelling an #export boom across Africa.

High prices for copper, oil, iron ore, aluminium and gas will stoke investments and are all helping to reduce external imbalances, stabilise currencies and boost economic growth. However, downside risks abound. The continent depends on #energy #imports (as net crude exporters

have insufficient #refinery capacity), and the #war in #Ukraine is set to stoke strong inflationary pressures.

Africa’s mineral potential is LIMITLESS