Mining Indaba Feature
In this exclusive Mining Indaba TV interview, Dion Shango, Africa CEO & Territory Senior Partner, shares insights from his participation in the Downstream Buyers programme, “Extraction to Innovation: Leveraging Africa’s Resource Wealth for Diversification and Development.”
By Jamie Hyland, MiningIR. Source: Mining Indaba TV interview
CAPE TOWN, South Africa — Africa’s mining sector stands at a historic crossroads. Long defined by the extraction and export of raw minerals, the continent is now under growing pressure — and presented with unprecedented opportunity — to convert its natural resource wealth into lasting industrial capability. At the Investing in African Mining Indaba 2026, this theme took centre stage as industry leaders, investors, and policymakers explored how Africa can move decisively from extraction to innovation.
In an exclusive Mining Indaba TV interview, Dion Shango, Africa CEO and Territory Senior Partner, shared insights from the Downstream Buyers programme session, “Extraction to Innovation: Leveraging Africa’s Resource Wealth for Diversification and Development.” His message was clear: Africa must urgently reposition itself within global value chains — not merely as a supplier of raw materials, but as a producer of higher-value goods and advanced manufacturing inputs.
Capturing Value Beyond Extraction
Africa holds a dominant share of the world’s reserves of critical minerals essential for the global energy transition, including cobalt, platinum-group metals, manganese, lithium, and rare earth elements. Yet historically, most of these resources have been exported in raw or minimally processed form, limiting the continent’s ability to generate jobs, develop skills, and build diversified economies.
“The shift from extraction to innovation is about capturing more value locally,” Shango said. “It’s about building industries around our resources, creating manufacturing capability, and ensuring Africa participates more fully in global value chains.”
This shift requires moving downstream into refining, beneficiation, and ultimately manufacturing. Rather than exporting raw lithium or cobalt, for example, African economies could produce battery-grade chemicals, precursor materials, or even components for electric vehicles and renewable energy systems.
Such industrial development would not only increase export value but also strengthen domestic economies, create skilled employment, and reduce vulnerability to commodity price cycles.
Policy Certainty as the Foundation for Investment
A central theme of Shango’s remarks was the importance of policy clarity and regulatory stability. Downstream processing and advanced manufacturing projects require substantial capital investment, often with long development timelines. Without predictable regulatory environments, investors are reluctant to commit.
“Policy certainty is one of the most critical enablers,” Shango emphasized. “Investors need confidence that regulatory frameworks will remain stable and that commitments made today will be honoured over the long term.”
This includes transparent licensing systems, consistent fiscal regimes, and alignment between mining, industrial, energy, and trade policies. Governments must also ensure that beneficiation policies are supported by practical enablers such as infrastructure, power reliability, and workforce development.
Mandating local processing alone, he noted, is insufficient if the broader ecosystem does not support competitiveness.
“You cannot legislate beneficiation into existence,” Shango said. “You must create the economic and operational conditions that make it viable.”
De-Risking Beneficiation and Manufacturing
One of the most significant challenges facing Africa’s downstream ambitions is project risk. Refining facilities and advanced manufacturing plants involve complex technologies, high capital expenditure, and exposure to global market fluctuations.
To overcome these barriers, Shango highlighted the critical role of public-private partnerships and innovative financing structures.
Governments can support investment through infrastructure development, fiscal incentives, and risk-sharing mechanisms. Development finance institutions can provide concessional funding, guarantees, or blended finance solutions that reduce investor exposure and improve project viability.
Equally important is the role of downstream buyers — global manufacturers seeking secure, sustainable supply chains. Long-term offtake agreements between buyers and African producers can provide the demand certainty necessary to justify investment in local processing capacity.
“Collaboration across the value chain is essential,” Shango noted. “Downstream buyers, mining companies, governments, and financiers must work together to unlock these opportunities.”
Strategic Focus and Realistic Milestones
While the opportunity is immense, Shango cautioned that Africa’s industrial transformation must be strategic and phased.
“Africa does not need to capture every stage of every value chain immediately,” he said. “The focus should be on areas where the continent has clear competitive advantages.”
Battery materials, platinum-group metal applications, green hydrogen technologies, and renewable energy components represent some of the most promising opportunities.
By focusing on selected value chains and building capabilities incrementally, Africa can achieve meaningful progress by 2030. Early successes in refining, intermediate processing, and specialized manufacturing can serve as catalysts for broader industrial development.
Each stage of progress builds technical expertise, strengthens supply chains, and enhances investor confidence.
The Evolving Role of Public-Private Partnerships
Public-private partnerships will be essential in bridging the gap between Africa’s mineral potential and industrial reality.
Governments play a crucial role as enablers, creating regulatory environments that attract investment and support industrial growth. The private sector brings capital, technical expertise, and operational efficiency.
Successful partnerships can accelerate infrastructure development, support innovation, and ensure that mineral wealth contributes to sustainable economic development.
Importantly, Shango emphasized that these partnerships must be based on shared objectives and long-term commitment.
“This transformation requires alignment between public and private stakeholders,” he said. “It is not just about extracting resources, but about building industries and economies.”
The Risk of Missing the Moment
The global energy transition has created a window of opportunity that may not remain open indefinitely. As countries race to secure supply chains for critical minerals, Africa has a chance to reposition itself as a strategic industrial partner.
However, failure to act decisively could result in continued dependence on raw material exports.
“If Africa does not transform today’s opportunity into lasting industrial capability, it risks remaining at the bottom of the value chain,” Shango warned.
This would represent a missed opportunity to create jobs, develop technology capabilities, and achieve long-term economic diversification.
Conversely, successful transformation could reshape Africa’s economic trajectory, enabling sustained growth and increased global competitiveness.
The Most Critical Reform: Execution and Consistency
Ultimately, Shango identified one factor above all others as essential to success: consistent policy execution.
“It comes down to clarity, consistency, and delivery,” he said. “Investors and industry need confidence that policies will be implemented effectively and sustained over time.”
Strong execution builds trust, attracts capital, and enables long-term industrial planning.
Without it, even the most ambitious strategies risk falling short.
Africa’s Industrial Future Begins Now
The discussions at Mining Indaba 2026 underscored a growing consensus: Africa’s future lies not only in extracting minerals, but in transforming them.
The continent’s resource endowment provides a foundation for industrialization, innovation, and economic diversification. Realizing this potential will require coordinated action, strategic investment, and sustained commitment from governments, industry, and investors.
As Shango concluded, the opportunity is clear — and the responsibility is shared.
Africa has the resources. The global demand exists. The path forward is defined.
The next step is execution.
