The FOCAC (Forum on China-Africa Co-Operation) summit is being held between 4 - 6 September in Beijing (same dates as Africa Down Under). As critical minerals will be discussed this year perhaps the Minister of Mines will attend this with the President rather than attending the Africa Down Under event.
As the Forum on China-Africa Cooperation (FOCAC) gears up for its 2024 summit, set for September 4 to 6 in Beijing, anticipation is building around the potential outcomes of this significant event.
thefinancialanalyst.net
FOCAC 2024: Will Critical Minerals Finally Take Center Stage in Beijing?
By
Felicity Hurley / August 29, 2024
As the Forum on China-Africa Cooperation (FOCAC) gears up for its 2024 summit, set for September 4 to 6 in Beijing, anticipation is building around the potential outcomes of this significant event. Since its inception in 2000, FOCAC has provided a vital platform for dialogue and collaboration between China and African nations, evolving into a cornerstone of China’s engagement with the continent. The summit is expected to attract a diverse array of African leaders, reminiscent of the 2018 gathering that saw over 50 heads of state and representatives in attendance.
FOCAC’s thematic focus areas—health, agriculture, trade, investment, infrastructure, and green development—reflect the multifaceted nature of China’s commitments to Africa. Past summits have highlighted substantial financial pledges, such as the $60 billion in 2018 and the $40 billion in 2021.
These figures underscore the scale of China’s involvement in Africa and the importance of fostering development across various sectors. However, a critical area that has historically been overlooked in FOCAC discussions is the mining sector, particularly the strategic importance of critical minerals.
Mining represents a significant component of African economies, accounting for about 70 percent of total exports and roughly 28 percent of GDP. With Africa holding approximately 30 percent of the world’s mineral resources, including essential materials for the green energy transition, the continent’s potential for economic growth through mining is immense. China’s heavy reliance on African minerals—comprising nearly 90 percent of its imports from the continent—highlights the strategic interest both parties have in this sector.
Despite the clear economic and strategic value of mining, FOCAC has not adequately addressed the role of critical minerals. This oversight is particularly striking as the demand for these minerals is expected to double by 2030, driven by the global shift towards clean energy technologies. China’s dominance in the processing and manufacturing of critical minerals places it in a pivotal position within the global supply chain, raising concerns among Western nations about over-reliance on Chinese resources.
In response to this growing competition, the United States and the European Union have initiated partnerships aimed at diversifying supply chains for critical minerals. The formation of the Minerals Security Partnership and recent tariffs on Chinese electric vehicles signal a concerted effort to curb China’s influence. However, these initiatives have yet to translate into substantial investments or concrete actions on the ground in Africa.
In contrast, Chinese companies have been proactive in securing mining interests across the continent. With over $1 billion invested in lithium projects in Zimbabwe alone, China’s swift actions underline its commitment to establishing a foothold in Africa’s mining sector. The proposed $1 billion refurbishment of the Tazara Railway, which connects Zambia’s Copperbelt to the port of Dar es Salaam, exemplifies China’s strategy to enhance logistical capabilities for mineral transport. This initiative directly competes with the Lobito Corridor, which aims to facilitate mineral transport to European and North American markets.
As African nations strive to transition from being mere suppliers of raw materials to developing local processing capabilities, they are asserting their interests more aggressively. Countries like Zimbabwe and Namibia have implemented bans on the export of raw critical materials, while the DRC and Zambia are collaborating on the development of electric vehicle batteries using locally sourced minerals. These moves reflect a growing desire among African nations to capture more value from their natural resources.
The upcoming FOCAC summit presents a crucial opportunity for African nations to collectively voice their demands regarding the mining sector and critical minerals. By advocating for fairer terms, increased investment in local processing, and alignment with Environmental, Social, and Governance (ESG) standards, African leaders can leverage this platform to ensure their development priorities are respected.
While the integration of critical minerals into FOCAC’s agenda remains uncertain, it is clear that the relationship between Africa and China will continue to evolve in response to global demand for these resources. Effective dialogue and collaboration will be essential for African nations to navigate this complex landscape, ensuring that their interests are safeguarded as they engage with one of their most significant partners. The stakes are high, and the time for proactive measures is now.
