Deputy Minister of Trade, Industry and Competition Zuko Godlimpi has warned African nations about their dependence on mineral commodities, saying that had left many of them vulnerable to external shocks in the global economy, especially during times of economic uncertainty.
Addressing a session on Critical Minerals, Green Transition and Africa’s Industrial Development Pathways at the World Trade Organization (WTO) Public Forum in Geneva, Godlimpi said Africa had an opportunity to build industrial capabilities on the back of critical raw materials.
Godlimpi said that as the green transition accelerated, critical minerals were becoming central to global development strategies.
However, he cautioned that dependence on the minerals made African countries vulnerable to external shocks that impacted their economies negatively.
“When prices fluctuate, African economies face the risk of capital flight, fiscal imbalances and even recession. The cycle of dependency has often resulted in dwindling revenues, increased debt, inflation and worsening poverty,” Godlimpi said.
“Africa must respond to the critical minerals race in a context where rich countries build supply chains in Africa but capacity in their countries rather than at source.
“Moreover, we must confront the critical issue of sustainability – What happens when these precious resources are exhausted? We cannot afford to repeat the mistakes of the past. Many African countries are already grappling with price volatility and the end-of-life cycle challenges for their mines, with little to no sustainability efforts in place.”
The African Group-led session at the WTO Forum in Geneva was focusing on actions required to promote green industrial development and sustainability in Africa, also exploring the challenges and opportunities related to the growing demand for critical raw materials.
Godlimpi said the global trade dynamics that left African countries at the bottom of the value chain – exporting raw materials while importing finished goods – had to change.
“The world must work alongside African nations to harness these critical minerals for structural transformation, industrialisation, and long-term sustainability. The WTO must help the developing world to improve living standards, create jobs and ensure a growing share of income from global trade,” he said.
The theme of this year’s WTO Public Forum, which coincides with the WTO’s 30th anniversary, is “Re-globalisation: Better Trade for a Better World”.
In line with the theme, this year’s forum is exploring how re-globalisation can help make trade more inclusive and ensure that its benefits reach more people.
Since his arrival in Geneva, Godlimpi has taken full advantage of a convergence of diverse stakeholders, including government policy makers, international organisations, business community, academia, parliamentary representatives and civil society.
He also held bilateral meetings with influential leaders, including WTO Director-General Dr Ngozi Okonko-Iweala and Secretary-General of the UN Conference on Trade and Development Rebeca Grynspan.
BUSINESS REPORT