The Democratic Republic of Congo (DRC) and the United States have signed a high-profile agreement on critical minerals. The deal promises economic transformation and secure access to cobalt and other key resources.
At the heart of the agreement is the Strategic Mineral Reserve (SMR). It is designed to ensure a stable supply of critical minerals, especially cobalt, for the United States. Additionally, Americans receive preferential treatment in their exploitation and commercialisation.
Consequently, Congo, the world’s top cobalt producer, now has the world’s two largest economies competing for its minerals.
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The deal also seeks to limit China’s mining expansion in the DRC. It offers political, fiscal, and regulatory incentives to American miners, investors, and buyers.
However, analysts warn that the agreement carries risks. Geraud Neema, Africa editor at the China-Global South Project, said, “The DRC can leverage U.S. interest, but weak negotiation and regulatory oversight could repeat past mistakes of underpricing minerals.”
Africa’s reserves of copper, cobalt, and lithium are among the largest in the world. Yet many African governments lack strong negotiation skills. As a result, they often lose potential revenue and compromise national interests.
Therefore, African nations need to assert control over their resources. They must enforce robust contracts, maintain leverage, and demand transparency. This strategy can maximise revenue and long-term benefits.
Beyond the DRC, African countries are pursuing electric mobility. Senegal, despite being an oil producer, actively promotes electric vehicles through public and private initiatives.
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Yet the continent faces obstacles. High import costs and limited infrastructure slow growth. Without local battery production and industrial integration, Africa risks exporting minerals without capturing economic gains.
The DRC-US mineral pact presents both opportunities and challenges. It could boost Africa’s role in the global green economy. However, success depends on strong governance, fair regulation, and ensuring that local communities benefit from mineral wealth.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
