Cradlesel
Beyond the short -term volatility and uncertainty created by President Donald Trump’s tariffs, it is highly likely that the long -term tendency of the world is divided into two trading blocks.
Trump’s intense and often removes contradictory actions, and the message seems to be quite clear. The view of Trump’s world is that you are in the United States or oppose it.
This is because the African Mineral Rich countries want to develop resources to provide the biggest profits, so we present a dilemma, but most of them want to stay neutral.
However, at the level of African countries, it is more likely that they must determine whether they are in Trump Camps or whether they like a business with China -led BRICS groups.
Both scenarios have risks and rewards, and each country in Africa may be tilted in some way.
Many of this week’s debate, which invested in the African mining meeting in Cape Town, was virtually the best way for African mining workers and the government.
The continent is already a major mineral producer, but when the energy transition is particularly accelerated, the undeveloped reserves are the main awards in the next few decades.
Africa is richly blessed, with an estimated 20 % of the world’s copper reserves, 50 % of manganese and cobalt, 90 % of platinum group metals, 36 % of chrome, litium and ulanium reserves. is. , Gold and rare earth.
However, the development of mineral resources was so challenging, given the political instability and corruption, poor infrastructure, lack of capital, and legal frameworks that make it difficult to justify long -term investment.
However, the increase in appetite in the mineral world is likely to cause new African new scrambles in order to enable energy shifting.
Finding an appropriate partner is an issue for African countries.
On the other hand, the west world offers a deep capital preparation for mining and engineering, a sophisticated stock market, investors, skills and experience.
However, Trump has impaired these advantages with his tariffs and threats to provide assistance and other funds, and the custom of turning on flip flopping policies with traditional allies.
Mr. Trump’s main problem is that he is the view of his clear transactions in the world, where he must always have a winner and loser, and he always wants to be the winner.
This means that it is more difficult to get a mutual useful transaction from the United States while Trump is taking office.
Not BE food
Probably, the investment in the African mining event was caused by the remarks when South Africa’s Minister of Africa said that if Trump reduced his assistance, Africa should refrain from minerals from the United States. In addition, it was boiled down by remarks at the mining event in Africa.
“If they don’t give us money, don’t give them minerals. We are not just BE food,” said Mantache.
“I can’t keep discussing these minerals based on the instructions of some developed countries. It’s as if there is no desire to accelerate the industrialization of Africa and close the development deficit,” said Mantashe. Ta.
These comments may not be wise in that it can help you to oppose playing cards, but it may sharpen some ideas on the west about how to access African minerals the best. No.
Should Africa aim for more people in China and BRICS as the best options to release the wealth of the minerals?
The experience here is somewhat mixed. China has the intention of developing mines in Africa, but tends to use the process with his own people, and he wants to export and benefit in China.
As a result, the advantages of African countries are limited, but as part of access to raw materials, the law has been used to copy what Indonesia has done to forcing companies to commit to the downstream business in Japan. There may be an option to use.
(The view expressed here is the author’s view, Reuters’ columnist).
Disclosure -2025 February 5, 225 03:54 PM IST
