A case for Establishment of an Organisation of Mineral Exporting African Countries (OMEAC)
With Africa’s mineral resources playing a central role in the global economy, OMEAC could become a powerful force for positive change, shaping the future of the continent and the world. Special Correspondent DOUGLAS RASBASH explores the potential and finds massive prospects of prosperity for the continent
Africa stands as the world’s mineral powerhouse, holding vast reserves of critical minerals essential for global industries. From cobalt to diamonds, platinum to copper, the continent’s resources are indispensable to the modern global economy.
Yet, despite Africa’s substantial contribution to the global mineral supply, its nations remain vulnerable to price fluctuations, external exploitation, and economic instability. Establishment of an Organisation of Mineral Exporting African Countries (OMEAC) would provide a unified platform for African nations to safeguard their economic interests, maximise the value of their resources, and exert greater control over the global mineral market.
Let us quickly remind ourselves of the immense mineral wealth of our continent. Cobalt: (70% of global production) especially the DRC, has a dominant position in global cobalt production, which is used in batteries for electric vehicles and electronics. Platinum: (70% of global production) South Africa is the world’s largest supplier, with platinum being vital for automotive catalytic converters, hydrogen fuel cells, and various industrial processes. Diamonds: (50% of global production) Africa continues to be the largest supplier of both industrial and gem-quality diamonds, particularly from Botswana and South Africa.
Across several countries
Gold: (20% of global production) Africa’s gold mines are spread across several countries, with South Africa once the leading producer but Ghana recently surpassed. The commodity continues to be a cornerstone of global wealth reserves and a critical material for electronics. Uranium: Africa has some of the largest uranium reserves, with Niger and Namibia being key contributors to the global supply. Manganese: (70%) Manganese is primarily used in steel production, and South Africa holds the largest share of global production. Chromium: (70%) Essential for stainless steel, South Africa is by far the largest producer of chromium.
Copper: (10%) Zambia and the DRC are major contributors to global copper supply, critical for electrical and electronics industries. Iron Ore: Guinea and South Africa are important iron ore suppliers, which are vital for the steel industry worldwide. Rare Earth Elements: Africa’s rare earth production is relatively small compared to China but is growing in places like Madagascar. Bauxite: Guinea is the world’s largest bauxite exporter, which is key for aluminium production. Tantalum: Tantalum is used in electronic capacitors and alloys, with Rwanda and the DRC being the largest producers. These minerals represent a significant portion of Africa’s contribution to the global economy, especially in sectors like electronics, energy, and manufacturing.
The actual market share and income from these resources fluctuate due to global demand, pricing, and production changes. Here’s a table summarising key minerals produced in Africa, their global market share (approximate), income from production (estimated), and the main producing countries. The numbers are approximations, as market shares and income can vary year by year, depending on market fluctuations, production levels, and other economic factors.
Despite Africa’s abundance of minerals, there are several challenges that hinder the continent’s ability to fully capitalise on its resources: Global mineral prices often fluctuate dramatically, which can destabilise national economies and hinder sustainable development. External Influence: Many African countries have limited control over pricing and production levels, with multinational corporations often driving the extraction of resources at terms that favour external interests.
The extraction of minerals sometimes comes at the expense of local communities and ecosystems, creating tensions and a need for better governance and fairer practices. Several African economies are overly dependent on mineral exports, which can lead to underdeveloped diversification and vulnerabilities to global market shifts.
The establishment of OMEAC would provide African mineral-producing nations with the ability to coordinate supply by regulating production levels and coordinating between member countries. OMEAC can stabilise mineral markets, reducing the negative effects of price volatility and boosting long-term economic stability for African nations.
Sustainable mining
OMEAC can collectively negotiate fairer prices for minerals, ensuring that African nations derive greater value from their resources and reduce dependence on external markets. The organisation would help establish frameworks for sustainable mining, balancing economic growth with environmental protection and social responsibility. By ensuring fair mineral revenues, OMEAC could help member nations invest in economic diversification projects, moving beyond over-reliance on resource extraction.
OMEAC can serve as a powerful voice in global trade negotiations, advocating for better terms for African nations in trade agreements and improving their bargaining position in international platforms. OMEAC would foster greater economic cooperation and integration among African nations, leading to shared best practices, technological advancements, and collaborative infrastructure development.
By aligning mineral extraction and pricing strategies, member countries could secure better prices for their resources, increasing national revenues. The stability created by coordinated production and pricing strategies would make African mineral sectors more attractive to global investors, knowing they operate within a transparent and predictable framework. OMEAC would enable countries to invest in sectors beyond mining, such as renewable energy, agriculture and manufacturing, creating more balanced, sustainable economies.
Research and development
The revenues and cooperation between OMEAC members could facilitate joint investments in infrastructure, research and development and technology transfer, further enhancing the mineral sector’s efficiency and sustainability.
Similar to OPEC’s success in the oil sector, a mineral-based coalition can help African nations secure better positions in the global marketplace. OPEC has demonstrated how member countries, with coordinated policies, can stabilise markets and exert control over pricing and production. Just as oil prices are significantly impacted by OPEC decisions, the global market for minerals like cobalt, platinum and diamonds could see similar shifts in influence if African countries speak with a unified voice.
The creation of the Organisation of Mineral Exporting African Countries (OMEAC) would be a monumental step towards securing Africa’s rightful place in the global mineral economy. By acting together, African nations can improve their bargaining power, stabilise prices, and ensure that the wealth derived from their resources benefits not only the continent but the world at large.
OMEAC would not just be a trade organization but a driver for sustainable development, stronger governance, and a more diversified, resilient African economy. And it goes without saying that the headquarters of OMEAC would be in Botswana. With Africa’s mineral resources playing such a central role in the global economy, OMEAC could become a powerful force for positive change, shaping the future of the continent and the world.