President Hakainde Hichilema is championing the creation of a pan-African minerals and metals exchange as part of a broader effort to help African nations capture more value from their abundant mineral resources.
The proposed exchange is intended to give African producers greater influence over mineral trading while promoting local processing, manufacturing and value addition across the continent.
Speaking on the initiative, Presidential Adviser on Finance and Investment Jito Kayumba said the vision is driven by growing demand from Africans, particularly young people, to benefit more directly from the continent’s natural resources.
“The desire of many young Zambians, as well as many Africans across the continent, is to be greater participants in the minerals that come from their soils,” Kayumba said.
His remarks reflect a wider shift across Africa, where governments are adopting policies aimed at strengthening control over strategic mineral resources, expanding domestic processing and increasing local ownership of mining value chains.
Several countries, including the Democratic Republic of Congo, Ghana, Guinea and Zimbabwe, have already introduced reforms designed to encourage mineral refining while limiting the export of selected unprocessed minerals.
Building on Zambia’s Metals Trading Strategy
The proposed continental exchange would build on Zambia’s existing metals-trading partnership with Mercuria Energy Group.
According to Kayumba, Zambia’s growing metals-trading business could provide a foundation for securing mineral supply for a broader African exchange by improving access to locally produced metals.
He revealed that Zambia has already held discussions on the proposal with the Democratic Republic of Congo and two other African countries, although he did not identify the additional participants.
The initiative also aligns with efforts by Zambia and the DRC to establish a regional electric vehicle battery manufacturing value chain.
In 2022, the two countries signed an agreement to leverage their vast copper and cobalt resources to support battery production and industrial development.
Progress, however, has been slower than anticipated, largely because governments have had limited direct access to minerals produced by privately owned mining companies.
Kayumba said stronger mineral trading mechanisms now being developed in both countries could help address this challenge.
The DRC has also secured offtake agreements involving major mines in which the state holds minority stakes and has established its own metals-trading arrangement with Mercuria.
Capturing More Value from Critical Minerals
The proposed exchange forms part of a growing continental strategy to move beyond the traditional export of raw minerals and retain more value within Africa.
The continent is one of the world’s largest suppliers of critical minerals essential for the global energy transition, including copper, cobalt, lithium and other battery metals.
Despite this resource wealth, much of the refining, processing and manufacturing continues to take place outside Africa, limiting the economic benefits retained by producing countries.
Supporters of the proposed exchange believe greater regional cooperation could help develop integrated mineral value chains, strengthen Africa’s bargaining power in global markets and attract new investment into refining and manufacturing industries.
Kayumba warned that failure to convert Africa’s mineral wealth into jobs and economic opportunities for its rapidly growing youth population could undermine long-term stability.
“Africa will be increasingly unstable if the population of young people continues to rise at the rate that it is rising, and the economy does not follow suit,” he said.
He added that democratic systems across the continent risk losing public confidence if they fail to deliver meaningful economic opportunities.
“Democracy is at risk in Africa because if it does not deliver the dividend that meets the needs of young people, then people start cheering on what happens in the Sahel,” Kayumba said, referring to a region that has experienced military coups, Islamist insurgencies and increased state intervention in mining assets.
If implemented, the proposed pan-African minerals and metals exchange could become a key pillar of Africa’s strategy to strengthen mineral sovereignty, expand regional trade and ensure the continent captures a greater share of the value created from the critical minerals driving the global energy transition.
