The competition for energy, minerals, and export infrastructure in Africa is intensifying, driven by global geopolitical tensions and increasing investments in the continent’s resource sector. From the potential disruptions in oil supply due to conflicts in the Middle East to significant mining ventures in South Africa and growing resource nationalism in the Sahel region, Africa’s commodity landscape is rapidly evolving.
Geopolitical Tensions and Oil Supply Risks in Africa
Fuel-importing nations in Africa are closely monitoring escalating tensions in the Middle East, particularly as conflicts involving Iran, the United States, and Israel threaten crucial global oil shipping routes. The Strait of Hormuz remains a vital transit point, as a significant portion of the world’s petroleum shipments passes through this corridor.
As reported by the Accra Street Journal (ASJ), African governments are already taking precautions to closely monitor fuel shipments. In Kenya, authorities are tracking an essential tanker expected to load petroleum products in the Red Sea, set to arrive at the Port of Mombasa, Eastern Africa’s largest distribution hub. The Energy and Petroleum Regulatory Authority has indicated that, for the time being, Kenya’s fuel reserves remain adequate; however, any delay in tanker loading could seriously impact supply throughout East Africa.
Meanwhile, in South Africa, motorists are bracing for rising fuel prices as uncertainties in global oil markets lead to increased shipping costs. Energy analysts warn that prolonged disruptions in tanker traffic could escalate fuel prices across numerous African economies that depend heavily on imported refined petroleum.
Patrice Motsepe’s Expansion in Mining
Amidst the uncertainties in energy markets, the mining sector in Africa is witnessing robust investment activities. South African billionaire Patrice Motsepe is significantly bolstering his influence in global mineral supply chains through his company, African Rainbow Minerals (ARM). ARM has partnered with Transnet and leading mining companies, such as Anglo American, South32, and Exxaro Resources, to develop a major manganese export terminal at Ngqura Port.
This new terminal is projected to handle an initial capacity of 16 million tons of manganese exports per year, with the potential to expand to 22 million tons according to data reviewed by the ASJ. This infrastructure aims to replace the outdated manganese export facility at Port Elizabeth Harbour, enhancing South Africa’s capacity in the global mineral market.
Holding approximately 75% of the world’s known manganese reserves, primarily located in the Northern Cape’s Kalahari Basin, South Africa is set to benefit from the surging demand for manganese, especially in steel production and battery technologies. For Motsepe, this project signifies another strategic expansion of his already vast mining empire, which also includes platinum, iron ore, and coal.
Niger’s Resource Nationalism Movement
In contrast, governments in certain West African regions, such as Niger, are tightening control over their natural resources. The military government in Niger recently revoked gold mining concessions held by three companies, citing non-compliance with contractual obligations, including unpaid taxes and environmental regulations. This policy shift follows the military coup in 2023 that brought new leaders to power.
Furthermore, the Nigerien government rejected a license extension for British company Savannah Energy for oil exploration in the Agadem Rift Basin. Analysts suggest that this reflects a broader trend among Sahel governments to reclaim control over extractive industries and renegotiate contracts with foreign companies. Niger has also previously nationalized its Samira Gold Mine as part of its resource nationalism strategy.
The Future of Africa’s Resources
This juxtaposition of expanding resource infrastructure against a backdrop of rising resource nationalism indicates that Africa is navigating critical trends in its resource landscape. On one end, private investors and mining corporations are establishing new logistics networks to cater to the growing global demand for essential minerals. Conversely, governments—especially in politically volatile areas—are seeking increased control over the revenues generated by these natural resources.
As the Accra Street Journal (ASJ) observes, Africa’s commodity sectors find themselves at a pivotal moment where infrastructure investment, geopolitical dynamics, and resource sovereignty will increasingly influence the continent’s economic future. For global investors and policymakers, the message is unmistakable: Africa’s resource markets are becoming more strategic, contested, and integral to the overarching global economy.
Source Used: Accra Street Journal
