Africa must turn mineral wealth into jobs and shared prosperity – Mahama

President John Dramani Mahama has called on African countries to transform their mineral wealth into jobs, industrial growth and shared prosperity rather than continue exporting raw materials with limited benefits to their economies.

He said African governments must prioritise local processing, manufacturing and stronger participation by indigenous businesses to ensure that more value from the continent’s natural resources remains within Africa.

Speaking at the Mining in Motion Summit in Accra on Monday, October 19, Mr Mahama said the continent must strengthen cooperation to secure better returns from its mineral resources and improve the living conditions of its people.

“African mineral oils must leave our ports as EV batteries, as electric cables and transformers, as finished aluminium parts, as rare earth magnets, and value-added products,” he said.

The President said African countries needed to move beyond extracting and exporting minerals to developing industries that could produce finished and semi-finished goods for local consumption and international markets.

He identified opportunities in aluminium, copper, iron, manganese and critical minerals, which he said could support the production of electric vehicle batteries, power systems, construction materials and mining equipment.

Mr Mahama also called for closer cooperation among African countries on mineral taxation, responsible mining and local participation, arguing that competition among countries for foreign investment could weaken their negotiating power.

He cited an experience from his first term in office when a leader from another West African country contacted him over differences in mining royalty rates offered to investors.

According to him, the country’s attempt to negotiate a higher royalty rate was complicated by a mining company’s threat to invest in Ghana, where it had secured a lower rate under stability agreements.

He said the experience highlighted the need for African governments to share information and coordinate their negotiations to prevent investors from exploiting differences in national policies.

“We do not reject partnerships with foreign capital or foreign direct investments. To investors, I say, bring your capital expertise and technology. Partner with us and African enterprise and resources to build competitive industries here in Africa,” he stated.