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CWA # 1464, 31 August 2024
NIAS Africa Studies
India-Africa relations: Critical minerals as an emerging domain

  Ayan Datta

Although India’s development assistance and capacity-building initiatives in Africa have long dominated the discourse on their bilateral relations, from 2014 onwards, critical minerals have become an emerging domain of cooperation. Indian investments in Africa and African interest in India have since intensified. The growth in the relationship can be attributed to a second “Scramble for Africa,” triggered by the continent’s abundant reserves of critical minerals needed for green technologies, including Electric Vehicles (EVs) and wind turbines. While India has participated in the scramble, its relationship with Africa has emphasised mutual benefit and technology transfers with African stakeholders. 

India and Africa’s interest in critical mineral cooperation
The following are the reasons for India and Africa’s interest in critical minerals.

First, India’s economy requires a continuous supply of critical minerals to meet its green energy targets. With their rich deposits, African countries are an attractive target for New Delhi. In 2020, India pledged to achieve “net zero” carbon emissions by 2050.  To meet its goals, the government incentivized EV and green energy production, which requires cobalt, copper, lithium, and platinum group elements (PGEs: collections of rare earth elements, including platinum, which occur together in nature and have similar applications). Several African countries, including Tanzania, Kenya, Mozambique, Rwanda, the Democratic Republic of Congo (DRC), Zambia and Zimbabwe, have rich deposits of these minerals, making them viable partners for India. New Delhi’s ties with these countries are mutually beneficial, as they help India generate green energy and provide economic opportunities for Africa.

Second, critical minerals are essential for India’s economy and military. India’s farming sector requires vast quantities of phosphorus and potassium to make fertilisers and pesticides. Morocco, Tunisia, and South Africa are leading producers of these minerals and, therefore, are attractive targets for Indian investors. Furthermore, PGEs and Rare Earth Elements (REEs) have wide-ranging defence applications, including in military hardware, aviation and spacecraft, necessitating that India incorporate countries that are rich in these resources, including Mozambique and South Africa, in its supply chains. 

Third, India and African countries share the aim of reducing their dependency on China. In 2023, India’s Ministry of Mines stated that the country depends heavily on China for its lithium, cobalt, graphite, and nickel. Similarly, China’s presence in Africa’s natural resource sector has raised fears of Beijing’s “debt-trap” diplomacy. Given their shared China issues, India and Africa are committed to diversifying their economic partnerships and avoiding dependence on single suppliers. 

Evolution of Indo-African critical mineral cooperation
The India-Africa Summit Forum of 2015 was a milestone in India-Africa critical mineral ties, with Prime Minister Narendra Modi, outlining a win-win model for bilateral relations. African countries would provide India access to their mineral deposits in exchange for Indian investments in resource exploration, extraction, export infrastructure, logistics, and technical assistance for African geoscientists. Following government-led discussions at the 2017 India-Africa Business Forum, Indian firms explored lithium mining opportunities in Zimbabwe, stressing New Delhi’s move to offset Chinese dependence on the EVs and batteries sector. In 2018 and 2019, India signed MoUs with Zambia and Zimbabwe for joint “exploration, exploration and exploitation of Mineral Resources.” Additionally, New Delhi agreed to train African geoscientists in advanced mapping and exploration techniques, reflecting Modi’s “win-win” formula.

Since 2020, the Indian government and private players massively expanded their presence in Africa’s critical mineral sector. While Indian leaders, including Minister of External Affairs S Jaishankar, met their African counterparts, leaders of multiple resource-rich African states, including Rwanda and South Africa, visited India to discuss cooperation in critical minerals. In 2023, India-based Vedanta Resources enlarged its footprint in Zambia by pledging USD 1.2 billion of investment into KCM to increase the mines’ Copper and Cobalt outputs and expand their total production capacity. The conglomerate expressed interest in exploring other critical minerals through its subsidiary, Hindustan Zinc, reflecting the positive effects of MoUs and governmental visits on private-sector initiatives. In June 2023, India’s Ministry of Mines released a report titled “Critical Minerals for India,” the first systematic outline of the country’s critical mineral needs. In December, the Ministry of Mines Secretary, VL Kantha Rao, stated that India was exploring critical mineral cooperation with African countries, marking the continent as a priority in India.

Major issues
Since 2014, Indo-African critical minerals ties have grown strengthened. However, India’s relations with the continent are fraught with issues. 

First, the competition with China. While Chinese SOEs and state-backed private firms have established production capabilities and invested in multiple African countries with rich mineral deposits, including DRC, Zambia and Zimbabwe, most of India’s efforts in Africa are at the MoU or discussion stage and lag behind China’s presence. 

Second, Africa’s infrastructure deficit. While Africa lacks transport and mineral processing infrastructure, India lacks the industrial capacity to meet these deficits, slowing down bilateral ties. 

Third, Africa’s focus on sustainable mining. While African governments have welcomed India, they have also emphasised resource sustainability, which could create operational difficulties for Indian players.

Trajectory of the relationship
As India grows, New Delhi will intensify critical mineral cooperation with Africa to achieve its green energy goals and reduce dependency on China. With their young workforces, African governments will increasingly seek Indian investments to generate employment and wealth. In the coming decade, the Indian government and private players will likely capitalize on the MoUs, visits and statements of intent with African countries to mine and process Africa’s mineral wealth. Although India’s presence will not reach China’s levels, it will be a source of diversification for African countries dependent on Beijing. However, unless India grows its industrial capacity through massive economic reforms and both parties find a middle path between resource extraction and environmental obligations, Africa’s infrastructure deficit and sustainability concerns will continue to impede bilateral cooperation.

About the author
Ayan Datta is a Postgraduate Student at the University of Hyderabad.

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