SADC Urges Local Countries to Move Beyond Raw Mineral Exportation

Southern African countries must overcome infrastructure, financing and skills shortages to turn their mineral wealth into industrial growth, sustainable jobs and greater economic value, the Southern African Development Community (SADC) has said.

Speaking at the SADC Business Council webinar on critical minerals on Tuesday, SADC Executive Secretary, Elias Magosi called for the region to move beyond extracting and exporting raw minerals towards processing, refining and manufacturing more products locally.

The message is significant for a region rich in natural resources but seeking to strengthen its participation in the industries that use them.

According to Magosi, mining contributes more than 10% of SADC’s regional gross domestic product (GDP), 25% of its total exports and approximately 20% of government revenues.

The region also holds significant global reserves of minerals including cobalt, diamonds, manganese, vanadium and platinum-group metals.

These figures underline the importance of mining to regional economies. However, Magosi argued that the real opportunity lies in connecting mineral extraction to other productive industries.

“The central challenge before us is clear: we must move beyond extraction and strengthen linkages between mining, manufacturing, infrastructure development, services, innovation and technology, and accelerated skills development,” he said.

For SADC countries, this means ensuring that minerals do more than generate income when they are exported. Processing and manufacturing can create additional business activity, employment and demand for local suppliers, while allowing more economic value to remain within the region.

However, achieving this requires more than having mineral deposits. Magosi identified unreliable energy supplies, inefficient transport systems, limited access to finance, technology gaps and insufficient targeted skills development as obstacles holding back mineral beneficiation and industrial growth.

These challenges matter because processing minerals and manufacturing products require dependable electricity, suitable infrastructure, investment capital and workers with the necessary technical expertise.

Without these foundations, countries may struggle to establish competitive industries even when mineral resources are readily available.

Magosi stressed that the challenges cannot be resolved through individual national efforts alone.

“Reliable energy supply, efficient transport systems, access to finance, technology transfer and advancements, targeted skills development and regulatory harmonization continue to constrain beneficiation and industrial development,” he stressed.

Magosi further called for stronger cooperation between governments, businesses, development finance institutions and regional partners to address these constraints.

The private sector also has a central role to play. Magosi encouraged businesses to invest in mineral processing, refining, battery-related value chains, recycling and mineral-based manufacturing rather than concentrating only on raw material exports.

For Namibia and other mineral-producing countries, this approach could create opportunities for manufacturers, transport operators, engineering firms and other businesses that support the mining industry.

SADC has already profiled regional mineral value chains and identified 20 potential investment projects involving energy storage, copper and mining-input value chains, according to the address. These are potential projects, not confirmed investments.