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Nigeria and South Africa forge strategic mining pact to unlock Africa’s mineral wealth

April 17, 2025

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|Published 2:11 PM ET, Thursday April 17, 2025|

Abuja: In a significant step toward regional economic integration and industrial diversification, Nigeria and South Africa have signed a landmark Memorandum of Understanding (MoU) to bolster collaboration in the mining sector. This alliance, formalized on April 17, 2025, is more than a routine diplomatic gesture—it reflects a shared vision of harnessing Africa’s vast mineral resources for sustainable development.

At the heart of the pact lies a pragmatic recognition: Africa’s economic future must extend beyond dependence on crude oil and raw exports. Nigeria, endowed with untapped deposits of gold, lithium, limestone, iron ore, and zinc, is seeking to recalibrate its economy by turning toward mining. South Africa, with its long-established mining industry and technological prowess, offers precisely the kind of experience and innovation needed to jumpstart this transformation.

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Among the core features of the agreement are collaborative efforts in geological mapping using advanced remote sensing technologies, data sharing on mineral assets, and the exploration of agro and energy minerals across Nigeria. Just as important, the deal also emphasizes human capital development through training programs in mineral processing and high-precision techniques such as laser ablation ICP-MS (LA-ICP-MS) for elemental fingerprinting. These measures signal a commitment not only to resource extraction but also to value addition and technological transfer—critical ingredients for building local capacity and ensuring long-term benefits.

Another strategic pillar of the agreement is investment promotion. With Nigeria’s mining sector contributing less than one percent to its GDP, the need for infrastructure, regulatory clarity, and investor confidence is urgent. The MoU paves the way for South African firms and other international stakeholders to see Nigeria not just as a source of raw materials but as a viable hub for responsible, profitable mining.

Beyond national borders, this partnership holds promise for the broader African Continental Free Trade Area (AfCFTA). By leveraging comparative advantages—Nigeria’s mineral wealth and South Africa’s expertise—the pact lays the groundwork for intra-African collaboration that can drive job creation, industrialization, and shared prosperity across the continent.

The Nigeria-South Africa mining accord is therefore not just a bilateral initiative; it is a forward-looking blueprint for African self-reliance and growth. In an era where resource nationalism is rising and global supply chains are shifting, Africa must lead with strategic partnerships grounded in mutual benefit, technological development, and inclusive growth.

If effectively implemented, this agreement could stand as a model for how African nations can cooperate not only to extract resources but also to shape the future.