Securing Minerals for the Energy Transition 2025

Illustration of an industrialization challenge BOX 6 Africa retains only 4-20% of the total value of unprocessed minerals extracted due to minimal local processing and limited downstream development.25 Industrialization category Key challenges Beneficiation cluster development –Lack of infrastructure for mineral beneficiation, including processing plants and transport networks –Dependency on funding and technological support from foreign players limits local control of value chains Cross-border collaboration for industrial activity –Lack of harmonization of mining regulations and tax policies can complicate cross-border collaboration –Governance and security issues can include corruption and lack of transparency, among others Downstream processing hubs –Cross-cutting challenges include frequent power outages, inadequate transportation infrastructure and human capitalMost of the critical minerals in SAR countries are exported as raw materials, with limited local value addition. Development of downstream capabilities and industrialization has been slow, except in the case of copper concentrates, which are almost fully refined onshore in SAR and exported as a cathode or blister. Such activities help boost investor confidence. Pace of industrialization 6 Securing Minerals for the Energy Transition: Finance for Southern Africa 15