Africa Needs to Capitalize on its Exports of Critical Minerals that are Essential to Semiconductor Manufacturing

In October last year the authorities in Beijing announced that they would be tightening export controls for some types of graphite, a critical mineral for the production of batteries and other electronics. The move, which China said was designed to “safeguard national security and interests”, raised serious alarm bells in neighbouring South Korea. The country’s major electronics companies, such as LG and Samsung, rely heavily on imports from China and other foreign markets to produce essential goods – not least semiconductors, which are central components of countless electronic devices and have become vital for the modern global economy. In what is perhaps a sign of Africa’s growing geopolitical and economic importance, South Korea responded to this disruption by turning to the continent, and in particular Mozambique and Tanzania, both of which are home to significant graphite reserves. Seoul has been investing heavily in developing diplomatic and economic relations in Africa, partly in anticipation of such developments. The continent is home to swathes of natural resources – such as graphite, silicon, and quartz – which have become increasingly valuable as essential components for semiconductor production.

AFRICAN BUSINESS