Deputy Minister of Trade, Industry and Competition Zuko Godlimpi has warned African nations about their dependence on mineral commodities, saying that had left many of them vulnerable to external shocks in the global economy, especially during times of economic uncertainty.
Addressing a session on Critical Minerals, Green Transition and Africas Industrial Development Pathways at the World Trade Organization (WTO) Public Forum in Geneva, Godlimpi said Africa had an opportunity to build industrial capabilities on the back of critical raw materials.
Godlimpi said that as the green transition accelerated, critical minerals were becoming central to global development strategies.
However, he cautioned that dependence on the minerals made African countries vulnerable to external shocks that impacted their economies negatively.
When prices fluctuate, African economies face the risk of capital flight, fiscal imbalances and even recession. The cycle of dependency has often resulted in dwindling revenues, increased debt, inflation and worsening poverty, Godlimpi said.
