Indo-African relations are being redefined as New Delhi forges partnerships with the continent to secure rare earth elements, the much-coveted metals crucial for modern-day high-tech, green energy and defence industries.
The partners are developing a symbiotic relationship to meet their mutual developmental needs and address India’s imperative for a green energy transition.
This is in marked contrast to many of Africa’s trade agreements, which often tend to be exploitative and extractive.
Amid rapidly rising demand for rare earths and as China, which controls 90% of the world’s supply, tightens its grip on the global rare earths market, India, like other countries, is racing to secure alternative sources of these elements.
The global concern over supply chain vulnerability heightened after Beijing, in response to the US’ trade war against it, imposed further restrictions on the export of rare earth metals.
Africa is central to India’s Critical Mineral Mission, which aims to achieve a stable rare mineral supply chain and ensure mineral availability through active collaboration with African nations.
In the past decade, New Delhi has invested heavily in African countries to explore the continent’s vast untapped reserves of rare earths to support its green energy agenda, effectively expanding its collaboration with the continent into new dimensions while contributing to the development of the Global South.
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Africa, with its abundant reserves of neodymium, dysprosium, cobalt and lithium, is a vital partner for exploration collaboration, technology transfer and joint ventures.
An important element of this partnership is long-term off-take agreements, creating opportunities for industrialisation and value addition on the continent.
The African continent is central to New Delhi’s $4 billion (about R65 billion) initiative to secure stable rare earths supply chains, with current agreements encompassing Zambia, Zimbabwe, Mozambique, Malawi, and Côte D’Ivoire.
Indian public sector companies like NLC India Limited is actively exploring lithium and cobalt, expanding beyond mere extraction to focus on R&D and value addition within Africa.
The company is at an advanced stage of discussion with Mali and the Republic of Congo for equity participation in lithium mining and cobalt mines, respectively.
While India’s moves to secure rare earths partnerships on the continent are, to some degree, aimed at challenging Chinese and Western hegemony in Africa, the major driving factor is economic – New Delhi has to find secure sources of rare earths because of their indispensability for the country’s high-tech and green technologies.
India’s approach is guided by the principles of development financing and political goodwill, characterised by mutual growth, transparency, and shared values, leading to a drastic shift in how Africa is seen in the global economic and supply chain discourse.
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The Indo-African rare earths agreements mark a shift from extractive models to an equitable economic model of obtaining resources from Africa, guided by mutualism, ensuring that the transaction of minerals translates into infrastructure development and local job creation for Africa.
India’s Ministry of External Affairs says the country’s stance is guided by an equal partnerships model envisaged by joint ventures, skills development, infrastructure support and contribution to local value addition.
According to the ministry, “this ensures that Africa no longer acts as a passive recipient of the foreign exchange in return for their minerals; rather, the nations are now aiming to transform mineral wealth into long-term sustainable growth”.
The cooperation on critical minerals has emerged as a field of engagement between the partners, with India focusing on mutual benefit and technology transfers with African stakeholders.
In turn, African governments are increasingly seeking Indian investments to accelerate employment growth and higher incomes.
It’s a win-win relationship, with India getting access to the precious rare earth elements, while Africa can leverage Indian investments to create jobs and wealth, placing Africa as a key supplier and India as a strategic partner in creating a balanced global rare earth landscape.
Clearly, India and Africa are poised to write a new chapter on economic symbiosis, buttressed by rare earths agreements and a desire for a greener, more sustainable future.
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