DRC-US mineral pact offers optimism—and inherent hurdles [Business Africa]

The Democratic Republic of Congo and the United States have signed a high-profile deal on critical minerals, promising economic transformation and secure supply chains.

Among other things, the agreement creates the so-called Strategic Mineral Reserve (SMR) to 'ensure predictable and durable supply of critical minerals, including cobalt, for the United States', while guaranteeing Americans preferential treatment in their exploitation and commercialization.

Congo is the world’s top producer of cobalt, a key a key material in electric vehicle batteries.

With this agreement, DRC now has the world’s two largest economies competing for its minerals. The agreement appears to seek to curtail the expansion of Chinese mining operations by securing wide-ranging political, fiscal and regulatory incentives for American miners, investors and buyers.

Geraud Neema analyses the political economy of natural resources. He is also the Africa editor at the China-Global South Project, a U.S.-incorporated organization that reports on Chinese engagement with Global South countries.

He joins the show to discuss the winners and losers in the deal.

Mineral diplomacy

Africa's copper, cobalt, and lithium reserves are among the largest on earth.

But the absence of robust mining negotiation skills among African governments has led to significant losses in potential revenues and compromised national interests in the mining sector.

Our reporting examines how African governments can assert greater control, retain leverage and maximize value.

Sustainable mobility

Despite being an oil producer, Senegal is powering ahead with electric vehicles.

The rapidly growing market is driven by public orders as well as private initiatives.

However, this growth faces certain obstacles particularly related to import costs and infrastructure, as Wahany Johnson Sambou reports from Dakar.