Despite possessing significant reserves of critical minerals essential for the global tech industry, South Africa appears to be missing out on the current boom, according to a recent analysis by TechCentral published today, January 22, 2026. While countries like Australia and Chile are capitalizing on the demand for lithium, cobalt, and nickel – vital for electric vehicle batteries and renewable energy technologies – South Africa’s potential remains largely untapped. This presents a crucial challenge for our continent’s economic diversification and participation in the future of technology.
Challenges in Infrastructure and Policy Hamper Growth
TechCentral’s report highlights significant infrastructure deficits as a primary obstacle. South Africa’s rail network and port facilities, crucial for exporting these minerals, have suffered from years of underinvestment and operational issues. This impacts the ability to efficiently move materials to international markets. Furthermore, the analysis points to policy uncertainty and slow permitting processes as deterrents to investment in the sector. We’ve seen similar challenges in other African nations, but swift regulatory action is vital to unlock potential.
The Global Demand for Tech Minerals is Surging
The global shift towards green technologies is driving unprecedented demand for these minerals. Electric vehicle production is accelerating worldwide, requiring substantial quantities of lithium and cobalt. Investments in battery storage solutions and renewable energy infrastructure are further fueling this demand. This creates a lucrative opportunity for African nations, but requires proactive engagement. For comparison, the success of mobile money with M-Pesa in Kenya demonstrates how quickly Africa can adopt and benefit from disruptive technologies when the environment is right.
Limited Local Processing Creates a Dependency
A key concern raised is the lack of significant local processing capacity. Currently, much of South Africa’s mineral wealth is exported in raw or semi-processed form, limiting the value captured within the country. Developing local beneficiation capabilities – refining and manufacturing these minerals into components for batteries and other tech products – is essential. This mirrors the ambitions of companies like Flutterwave, which aim to build financial infrastructure within Africa, rather than relying on external platforms.
Building a Future as a Tech Mineral Hub
Despite the current challenges, South Africa has a clear path to becoming a major player in the tech minerals supply chain. Prioritizing investment in rail and port infrastructure is paramount. Streamlining permitting processes and creating a stable regulatory environment will attract foreign and domestic investment. Crucially, fostering partnerships with companies like TLcom, Partech, and Norrsken – investors actively supporting African tech – can accelerate the development of local processing facilities and innovative technologies. The future of our continent’s tech sector depends on seizing this opportunity and building a robust, sustainable minerals industry.
