All posts by Michael Patotschka

Mapping Africa’s natural resources Nearly half the world’s gold and one-third of all minerals are in Africa

Beneath the surface of Africa lies a wealth of mineral resources of enormous value. In 2019, the continent produced almost 1 billion tonnes of minerals worth $406bn.

According to the United Nations, Africa is home to about 30 percent of the world’s mineral reserves, 12 percent of the world’s oil and 8 percent of the world’s natural gas reserves.

The continent also holds 40 percent of the world’s gold and up to 90 percent of its chromium and platinum – both valuable metals.

A world of minerals in your mobile phone

Most of the electronics we use today are based on a number of minerals – from aluminium to zinc.

In 2021, some 1.5 billion smartphones were sold around the world – up from 122 million units in 2007. As of 2020, nearly four in five (78 percent) people own a smartphone.

More than half of a mobile phone’s components – including its electronics, display, battery and speakers – are made from mined and semi-processed materials.

INTERACTIVE Mapping Africas mineral resources - minerals in your mobile

Lithium and cobalt are some of the key metals used to produce batteries. In 2019, about 63 percent of the world’s cobalt production came from the Democratic Republic of the Congo.

Tantalum is another metal used in electronic equipment. Tantalum capacitors are found in mobile phones, laptops and in a variety of automotive electronics. The DRC and Rwanda are the world’s largest producers of tantalum. Together they produce half of the world’s tantalum.

Top minerals per country

Petroleum and coal are among the most abundant minerals for 22 out of Africa’s 54 countries. As of 2019, Nigeria produced most of the continent’s petroleum (25 percent), followed by Angola (17 percent), and Algeria (16 percent).

Metals including gold, iron, titanium, zinc and copper are the top produced minerals for 11 countries. Ghana is the continent’s largest producer of gold, followed by South Africa and Mali.

Industrial minerals such as diamonds, gypsum, salt, sulphur and phosphates were the main commodity for 13 African countries. The DRC is Africa’s largest industrial diamond producer, followed by Botswana and South Africa. Botswana ranks number one in Africa for the production of gem-quality diamonds – used for jewellery.

INTERACTIVE Mapping Africas mineral resources - top minerals per country

Mineral wealth

At $125bn per year, South Africa generates the most money from its mineral resources. Nigeria comes in second with $53bn per year, followed by Algeria ($39bn) Angola ($32bn) and Libya ($27bn).

These five countries produced more than two-thirds of the continent’s mineral wealth.

INTERACTIVE Mapping Africas mineral resources - top mineral producers

The world’s minerals

According to The World Mining Congress (pdf), the world extracted some 17.9 billion tonnes of minerals in 2019.

Asia was the largest producer, accounting for 59 percent of the world’s total production valued at $1.8 trillion. North America was second with 16 percent, followed by Europe at 7 percent.

Africa produced about 5.5 percent of the world’s minerals worth some $406bn.

INTERACTIVE Mapping Africas mineral resources - world mineral production per continent

Source: Al Jazeera, 15th February 2022

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DRC, South Africa, Botswana… Who has the greatest potential in critical minerals?

Zimbabwe has one of the world’s largest reserves of lithium; treatment plant in Goromonzi, in the country’s north-east. (© Montage JA; Tsvangirayi Mukwazhi/AP/SIPA)

Rich in minerals and strategically located, in theory the African continent has what it takes to play a key role in the ongoing energy transition, but the reality is more complex.

“There is no chance of making the energy transition without Africa,” Robert Friedland, the founder of Ivanhoe Mines, who discovered the Kamoa-Kakula copper deposit in Democratic Republic of Congo (DRC), told the London Indaba conference on mineral resources, energy and mining in June last year.

Indeed, decisive resources for a low-carbon economy are abundant in Africa. The continent’s production of metals used in the manufacture of batteries, solar panels, wind turbines and other electrical networks is impressive.

The Democratic Republic of Congo (DRC) is the leading producer of cobalt, while South Africa is in pole position for platinum and manganese.

As a whole, the continent accounts for more than half the world’s production of these three minerals.

Source: African Report, 18th January 2024

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Ethiopia-Somaliland deal makes waves in Horn of Africa

 

The deal has caused outrage in Somalia

Somalia has ruled out mediation with Ethiopia unless Addis Ababa cancels a controversial deal that it recently made with the self-declared republic of Somaliland.

The 1 January agreement has been causing ructions in the Horn of Africa after Somaliland said it would lease part of its coastline to its landlocked neighbour.

Somalia – which considers Somaliland to be part of its territory – has previously described the move as an act of aggression.

Both the African Union and the US have backed the territorial integrity of Somalia and urged all parties to cool tensions.

What was agreed?

The exact wording of the deal signed by the leaders of Ethiopia and Somaliland has not been made public, which is a problem as there are differing versions of what the two sides agreed in the Memorandum of Understanding (MoU).

An MoU is a statement of intent rather than a legally binding agreement but what seems clear is that Somaliland is ready to grant Ethiopia access to the sea for commercial traffic through a port, although it is not clear which port that would be.

There is also a military aspect. Somaliland has said it could lease a section of the coast to Ethiopia’s navy, a detail which has been confirmed by Addis Ababa.

In return, Somaliland will get a share in Ethiopia Airlines, the country’s successful national carrier.

But where things get sticky is whether Ethiopia said it would recognise Somaliland as an independent state – something which no other country has done in the 30 years since the former British protectorate said it was leaving Somalia.

On the day of the signing, Somaliland’s President Muse Bihi Abdi said the agreement included a section stating that Ethiopia would recognise Somaliland as an independent country at some point in the future.

Ethiopia has not confirmed this. Instead, in its attempt to clarify what was in the MoU, the government on 3 January said the deal included “provisions… to make an in-depth assessment towards taking a position regarding the efforts of Somaliland to gain recognition”.

Why is this so controversial?

For Somalia, Somaliland is an integral part of its territory. Any suggestion that it could make a deal with another country or that bits of it could be leased without the approval of Mogadishu is highly problematic.

The day after the MoU was signed, Somalia described the deal as an act of “aggression” that was an “impediment to… peace and stability”. It also recalled its ambassador from Addis Ababa.

Ethiopia’s ambassador to Somalia subsequently left Mogadishu but there was no explanation for this move.

The Somali President Hassan Sheikh Mohamud later stepped up the rhetoric saying: “We will defend our country, we will defend it by all means necessary and seek the support of any ally willing to help us.”

He also called on youths “to prepare for the defence of our country”.

The president has described Ethiopia as his country’s “enemy”.

“We have resisted their [Ethiopia’s] invasion before. We defeated them before and we will again,” he said on 12 January, according to state-owned broadcaster SNTV.

Ethiopia and Somalia have a long history of rivalry.

In 1977 and 1978, Ethiopia and Somalia fought a devastating war for control of what is now called the Somali region of Ethiopia.

There have also been protests in Mogadishu against the deal with tens of thousands turning up to express their opposition.

What is the status of Somaliland?

Somaliland, a former British protectorate, declared itself independent from Somalia in 1991 and has all the trappings of a country, including a working political system, regular elections, a police force and its own currency.

Over the decades it has also escaped much of the chaos and violence that have hit Somalia.

But its independence has not been recognised by any country.

If, as Somaliland said, Ethiopia has agreed to recognise it at some point, it would have a profound impact on the Horn of Africa region.

What has Ethiopia said?

Prime Minister Abiy Ahmed last year described access to the sea as an existential issue.

Ethiopia lost its ports when Eritrea seceded in the early 1990s. With more than 100 million people, it is the most populous landlocked country in the world.

Mr Abiy’s statement raised fears that Ethiopia could try to achieve its goal by force.

It has described the deal with Somaliland as historic, and emphasised that its intentions are peaceful.

“The position announced by the government is strongly rooted in a desire to not engage in war with anyone,” Ethiopia’s communications office said.

But in an oblique reference to the controversy, Mr Abiy said on X that “if we expect things to happen in ways that we are used to or know or can predict, [opportunities] may pass us”.

He added that some sometimes “out of the box” thinking was needed to achieve goals.

What have others said?

On 3 January, African Union commission chairperson Moussa Faki Mahamat called for calm and mutual respect “to de-escalate the simmering tension”.

US state department spokesperson Matthew Miller also said that his country was concerned by reports that Ethiopia would recognise Somaliland’s independence.

“We join other partners in expressing our serious concern as well about the resulting spike in tensions in the Horn of Africa,” he added in a press briefing. The Arab League and the European Union have made similar statements.

Turkey, which plays a significant role in Somalia, stated its “commitment to the unity, sovereignty and territorial integrity” of Somalia.

And Egypt has also pledged support for Somalia. President Abdul Fattah al-Sisi told his Somali counterpart that Egypt stood by Somalia and supported “its security and stability”.

On 8 January, Somalia’s President Mohamud flew to Eritrea to hold talks with President Isaias Afwerki.

The Somali leader said Eritrea had said it backed Somalia in the dispute, but the Eritrean government is yet to comment.

Another regional neighbour, Kenya, which enjoys close relations with both Ethiopia and Somalia, has kept a low profile and has not yet formally commented, while Uganda has also not taken a clear position.

Map

Source: BBC, 20th January 2024

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Blinken’s latest diplomatic trip will take him to Africa as crises continue to vex US foreign policy

WASHINGTON (AP) — Secretary of State Antony Blinken is planning to visit four African countries as the Biden administration tries to keep its eyes on all corners of the world while being consumed by crises in Ukraine, the Mideast and the Red Sea.

The State Department announced on Thursday that Blinken will go to Cape Verde, Ivory Coast, Nigeria and Angola starting Sunday for talks focused on regional security, conflict prevention, democracy promotion and trade. Nigeria is West Africa’s regional heavyweight and plays a major role in security issues, especially those involving Islamic extremist violence in the Sahel, the vast arid expanse south of the Sahara Desert.

The trip will be his third overseas mission in the new year. He returned from a Gaza-focused, weeklong 10-nation trip to the Middle East last Thursday and a three-day trip to the World Economic Forum in Switzerland on Wednesday.

Source: AP,  18th January 2024

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IMF approves new $941 m loan for cash-strapped Kenya

Kenya President William Ruto speaks during a plenary session at the COP28 U.N.   –  Copyright © africanews Peter Dejong/Copyright 2023 The AP. All rights reserved.

The International Monetary Fund has granted Kenya a new loan of more than $941 million to help reinforce the finances of the cash-strapped East African nation.

Kenya is grappling with a host of economic challenges including a vast debt mountain, cost of living crisis and tumbling currency.

The IMF said in a statement published on Wednesday that its executive board had approved the $941.2 million loan, with an immediate disbursement of $624.5 million.

Total payments under various credit facilities amount to about $2.6 billion, it added.

The Washington-based agency said it forecast Kenya’s economic growth at around 5 percent this year, from an estimated 5.1 percent in 2023.

“Kenya’s growth remained resilient in the face of increasing external and domestic challenges,” said Antoinette Sayeh, IMF deputy managing director and acting chair, said in the statement.

The credit arrangements for Kenya “continue to support the authorities’ efforts to sustain macroeconomic stability, strengthen policy frameworks, withstand external shocks, push forward key reforms, and promote more inclusive and green growth”.

According to the latest Treasury data released this month, Kenya’s public debt stands at 10.585 trillion shillings ($65.5 billion).

In December, Kenya ditched a promise to buy back a portion of a $2 billion Eurobond that is due to mature in June.

Instead, Finance Minister Njuguna Ndung’u said the country had paid $68.7 million in interest on the bond, sidestepping a potential default.

“In its unwavering commitment to upholding a resilient sovereign credit rating and facilitating access to new development financing, Kenya remains dedicated to fulfilling all debt obligations with international lenders,” Ndung’u said.

President William Ruto had announced a plan in November to buy $300 million of the Eurobond, saying public debt had “become a source of much concern to citizens, markets and our partners”.

Ruto has imposed a raft of new or increased taxes to try to replenish government coffers, but they are deeply unpopular among people struggling with rising costs for basic goods, and several have been challenged in court.

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