<p><strong>Africa will have more data centres than any other region in the world.</strong></p>
<p>Artificial Intelligence is here to stay! Now, we may not all be thrilled about this and how it is being done- but this is an eve to a golden era that has heralded a massive global wealth transfer. In this paper, we try to make sense of the opportunity for Africa and how we can fully benefit from the “best invention since electricity.”</p>
<h2>Increasing demand for energy related and aligned resources</h2>
<p>There’s an increasing demand for energy related resources- copper, lithium, platinum among others. This is a boon for Africa- with experts predicting a 10 year supercycle for minerals.</p>
<p>Semiconductor chips, the backbone of AI systems, require minerals such as copper, gold, tin, nickel, platinum, lithium, palladium and silver- which are in abundance in various countries on the continent.</p>
<p>This growth in demand for resources has also created bottlenecks in the already stretched supply chains. This is seeing increased investment and acquisitions of African supply chain infrastructure such as ports on the continent. He who controls the supply chains will control the veritable “shovels” to this AI goldrush- and this has been led by China.</p>
<h2>The role of China</h2>
<p>China has for many years been investing in African resources in countries such as Zambia and the Democratic Republic of Congo.</p>
<p>With the tariff trade wars currently happening between China and the USA- we have seen China refocusing its attention more on the continent- not only to develop new markets for its products, but also to source the resources that will see it rely on the US less.</p>
<p>Our focus on this point will be the Democratic Republic of the Congo (DRC) and how they renegotiated infrastructure-for-minerals deals with Chinese miners, seeking more favorable terms.</p>
<p>African countries are increasingly seeking to renegotiate or modify their mining agreements, aiming to gain a greater share of their mineral wealth and benefits. This push is driven by concerns about the terms of existing contracts, which have been seen as disadvantageous to the host countries and prioritizing foreign investors' profits over national development.</p>
<h3>Examples of Actions:</h3>
<ul>
<li><strong>Democratic Republic of the Congo (DRC):</strong> Renegotiating infrastructure-for-minerals deals with Chinese miners, seeking more favorable terms.</li>
<li><strong>Botswana:</strong> Threatening to sever ties with De Beers, a major diamond miner, over profit-sharing arrangements.</li>
<li><strong>Zimbabwe:</strong> Banning the export of lithium ore in its raw form and cracking down on illegal mining.</li>
<li><strong>Namibia:</strong> Banning the export of unprocessed lithium ore.</li>
<li><strong>Ghana:</strong> Will not export lithium ore in its raw form.</li>
<li><strong>Tanzania, Sierra Leone, Malawi:</strong> Revising mining codes and policies to strengthen government negotiation power and secure more developmental benefits.</li>
</ul>
<h3>Reasons for the Shift:</h3>
<ul>
<li><strong>Unequal Partnerships:</strong> African countries are seeking to move away from historical patterns where external powers profit from resource extraction while African communities bear the costs.</li>
<li><strong>Need for Fair Trade Agreements:</strong> The push for renegotiation is rooted in the desire for fair trade agreements and local benefits.</li>
<li><strong>Africa Mining Vision:</strong> Inspired by the Africa Mining Vision, a framework developed by the African Union to deepen linkages between foreign-owned mining and national economies, and to strengthen government capacity.</li>
<li><strong>Resource Nationalism:</strong> The increasing demand for critical minerals for the green energy transition has led to a wave of activity where African countries are taking steps to control their resources.</li>
</ul>
<h2>The middle east joining in</h2>
<p>Notwithstanding China’s investment domination on the continent, Middle East nations such the UAE and Saudi Arabia have significantly increased their investments in African mining. This trend is driven by a desire to diversify away from hydrocarbons and secure access to vital minerals, including those needed for renewable energy technologies.</p>
<p>This has led to experts at the Rand Merchant Bank predicting a trade war between the Middle East and The West for African resources- with the Middle East having invested in excess of $150 billion in African mining over the last decade.</p>
<h2>Resource Sovereignty Trend in Africa</h2>
<p>Following up on the point above, a growing trend in Africa is countries taking back full sovereignty of their resources and controlling more of the value chain through beneficiation. Countries such as Burkina Faso, Zimbabwe and Ghana among others in a form of resource nationalism. This stands to net more of the financial ‘pie’ for African countries.</p>
<p>Case in point, Burkina Faso’s leader Ibrahim Traore has been rescinding mining permits held by large Western nations. This has increased the velocity, with other nations such as Ghana joining in.</p>
<h2>The electricity imperative: the need for infrastructure</h2>
<p><strong>“There is no AI without electricity.”</strong></p>
<p>Now, with the boom of AI- the need for growing sources of electricity becomes glaring. This is both a challenge and an opportunity for Africa where we see growth in data centres over the short to medium term.</p>
<p>Africa is the continent with the electricity infrastructure that is most lagging- and this may be an impediment to growth of AI- which needs copious amounts of electricity to run the compute required in data centres. However, in true double-edged sword form; this stands as a large opportunity for the continent to lay the important foundation for sustainable growth- infrastructure.</p>
<p>Africa has made a name for itself by leapfrogging various technology lifecycles; but building the necessary infrastructure required by AI at speed does seem like an uphill task. Will the continent be able to afford it responsibly? Will our political leaders have the political will to do the hard things? Is the vision in place?</p>
<h2>The Necessary Human Component</h2>
<p>The boom in AI has also highlighted the stark need to develop human skills to thrive in this new reality. A wide array of direct and indirect skills development is required to upskill, reskill and train new talent on the continent.</p>
<p>As a continent with the youngest population per capita in the world, we see this as an opportunity. Skills in data, development and maintenance of AI-driven advancements are coming to the fore as we witness this revolution unfold.</p>
<p>And then there is the labour on the ground. There have been stories of widespread human rights and labour violations in the DRC’s cobalt mines. These issues need to be addressed. A humane approach throughout the value chain is what we want to see as Africans, and that starts with us.</p>
<h2>Conclusion</h2>
<p>In conclusion, three issues stand out for us- Energy and Infrastructure; Supply Chain Infrastructure; and Human development. With a young burgeoning demographic, the most important minerals for the next few decades and ownership of our energy and supply chain infrastructure- we believe Africa is poised to see seismic growth in the next few years or decades.</p>
<p>And our bold claim is that if we do all these right, Africa will have the most data centres in the long term.</p>
<h2>Resources:</h2>
<ul class="resource-list">
<li><a href="https://www.businesslive.co.za/bd/companies/mining/2024-02-15-expect-a-middle-east-scramble-for-green-african-metals-says-rmb/">https://www.businesslive.co.za/bd/companies/mining/2024-02-15-expect-a-middle-east-scramble-for-green-african-metals-says-rmb/</a></li>
<li><a href="https://businesstech.co.za/news/business/822235/money-flooding-into-south-africa-from-saudi-arabia/">https://businesstech.co.za/news/business/822235/money-flooding-into-south-africa-from-saudi-arabia/</a></li>
<li><a href="https://www.cruxinvestor.com/posts/middle-east-backing-fuels-african-gold-boom-with-high-margins-and-strong-growth#:~:text=The%20UAE%20has%20emerged%20as,exchanges%20between%20the%20two%20regions.%22">https://www.cruxinvestor.com/posts/middle-east-backing-fuels-african-gold-boom-with-high-margins-and-strong-growth#:~:text=The%20UAE%20has%20emerged%20as,exchanges%20between%20the%20two%20regions.%22</a></li>
<li><a href="https://www.miningweekly.com/article/burkina-faso-plans-to-withdraw-some-mining-permits-junta-leader-says-2024-10-07">https://www.miningweekly.com/article/burkina-faso-plans-to-withdraw-some-mining-permits-junta-leader-says-2024-10-07</a></li>
<li><a href="https://www.dailymaverick.co.za/article/2025-04-14-ai-boom-is-reshaping-energy-needs-and-the-world-needs-to-be-prepared-to-power-it/">https://www.dailymaverick.co.za/article/2025-04-14-ai-boom-is-reshaping-energy-needs-and-the-world-needs-to-be-prepared-to-power-it/</a></li>
<li><a href="https://www.inonafrica.com/2023/04/11/africas-new-push-for-a-fair-share-of-its-mineral-wealth/">https://www.inonafrica.com/2023/04/11/africas-new-push-for-a-fair-share-of-its-mineral-wealth/</a></li>
<li><a href="https://www.bloomberg.com/news/newsletters/2023-06-20/next-africa-resource-nationalism-or-a-fair-share#:~:text=Resource%20nationalism%20is%20a%20wave%20of%20green,export%20lithium%20ore%20in%20its%20raw%20form">https://www.bloomberg.com/news/newsletters/2023-06-20/next-africa-resource-nationalism-or-a-fair-share#:~:text=Resource%20nationalism%20is%20a%20wave%20of%20green,export%20lithium%20ore%20in%20its%20raw%20form</a></li>
<li><a href="https://blogs.lse.ac.uk/africaatlse/2024/10/28/foreign-countries-are-lining-up-to-exploit-africas-critical-minerals/#:~:text=The%20MSP%20members%20include%20the,the%20brunt%20of%20the%20costs.">https://blogs.lse.ac.uk/africaatlse/2024/10/28/foreign-countries-are-lining-up-to-exploit-africas-critical-minerals/#:~:text=The%20MSP%20members%20include%20the,the%20brunt%20of%20the%20costs.</a></li>
<li><a href="https://www.gov.za/blog/world-needs-do-much-more-tackle-climate-change-and-do-it-faster#:~:text=In%20my%20address%20to%20the%20Climate%20Ambition,should%20be%20the%20product%20of%20multilateral%20agreements.">https://www.gov.za/blog/world-needs-do-much-more-tackle-climate-change-and-do-it-faster#:~:text=In%20my%20address%20to%20the%20Climate%20Ambition,should%20be%20the%20product%20of%20multilateral%20agreements.</a></li>
<li><a href="https://theconversation.com/african-countries-lost-control-to-foreign-mining-companies-the-3-steps-that-allowed-this-to-happen-218437#:~:text=Recent%20mining%20code%20and%20policy,benefits%20from%20foreign%20mining%20corporations.">https://theconversation.com/african-countries-lost-control-to-foreign-mining-companies-the-3-steps-that-allowed-this-to-happen-218437#:~:text=Recent%20mining%20code%20and%20policy,benefits%20from%20foreign%20mining%20corporations.</a></li>
<li><a href="https://www.africanews.com/2023/05/04/can-african-countries-create-a-new-mining-order-business-africa/">https://www.africanews.com/2023/05/04/can-african-countries-create-a-new-mining-order-business-africa/</a></li>
</ul>
