A New Scramble for Africa’s Resources Is Underway – And This Time, the Stakes Are Global

By Dishant Shah

Africa is once again at the center of a global resource rush – but this time, it’s not rubber or ivory that’s drawing international attention. Lithium, cobalt, oil, and even land are now in high demand, driven by the accelerating climate tech revolution, the rise of electric vehicles (EVs), and shifting geopolitical dynamics.

So who’s leading the charge?

China Takes the Lead

China remains firmly at the forefront. In 2023 alone, Chinese investment in African mining reached nearly US$11 billion, marking the highest level since 2005.

Of that, approximately US$7.8 billion flowed directly into mines producing cobalt, copper, and lithium across countries like Zambia, Zimbabwe, and Namibia.

One of the most significant developments is the China-backed Sicomines agreement in the Democratic Republic of the Congo (DR Congo), which has committed US$7 billion in infrastructure development in exchange for copper and cobalt. Meanwhile, major Chinese firms such as SinoMine and Wanbao are aggressively expanding their presence in Zimbabwe and the DR Congo, acquiring lithium and cobalt projects worth hundreds of millions of dollars.

The West Catches Up

The European Union and the United States are playing catch-up. EU development banks have pledged €424 million (US$489 million) to support mining and governance reforms in the DR Congo.

On the U.S. side, the Development Finance Corporation (DFC) recently approved a US$3.4 million package to fund rare earth exploration in Angola.

U.S. companies like KoBold Metals, Rio Tinto, and Orion Minerals are also ramping up their involvement in Congolese lithium and cobalt projects. A new mineral trade deal between the U.S. and DR Congo is currently being finalized, aimed at redirecting investment toward American-backed firms and strengthening supply chain security through locally anchored infrastructure.

Beyond Minerals: Land and Oil Deals Multiply

This resource race isn’t limited to critical minerals. Gulf investors, along with European and Asian sovereign wealth funds, are acquiring vast tracts of land across the continent for agribusiness and biofuel production.

With Africa estimated to hold 70 percent of the world’s cobalt and over half of its lithium reserves, the continent could play a pivotal role in powering the global green transition. Yet, there’s a stark imbalance: African nations currently capture only about US$2 out of every US$5 in potential value from the mining supply chain.

Human Cost and Ethical Concerns

The human toll of this resource boom is increasingly visible. In Nigeria, illegal lithium mines exploit children under the age of 10, who work in dangerous conditions for less than US$1 per day.

In Zimbabwe, the rush for lithium is fueling corruption and displacing artisanal miners, further marginalizing local communities.

Who Benefits?

The winners so far appear to be foreign corporations and state-backed entities that can mobilize capital and scale quickly. African governments, meanwhile, are pushing for more domestic processing of raw materials – a move that could unlock greater economic value.

But many lack the necessary infrastructure and financing to fully capitalize on this opportunity.

Local communities often bear the brunt of environmental degradation, weak labor protections, and inadequate public services funded by mineral revenues. The result is growing frustration over missed opportunities for inclusive growth.

What’s Next?

Africa has the potential to become a global leader in battery materials, data-center energy, and clean technology feedstocks. But to ensure long-term benefits, the current wave of investments must include:

• Greater local ownership stakes.
• Transparent contract frameworks.
• Stronger labor standards.
• Robust environmental safeguards.

Without these measures, the continent risks repeating the mistakes of the past – exporting its natural wealth while missing out on shared prosperity.

The Challenge Ahead: Shared Prosperity, Not Resource Depletion

As the scramble for Africa’s resources intensifies, the key question becomes: Can this new resource rush be transformed into a vehicle for equitable development – or will it simply reinforce old patterns of extraction and inequality?

The answer may well determine Africa’s role in shaping a sustainable, just future.

Dishant Shah is a partner at Legion Exim, a company specializing in facilitating the export of high-quality engineering products directly sourced from manufacturers in India to Africa. His areas of expertise include new business development and business management.