Germany urged to adopt ‘Africa shift’ due to raw material dependencies

By Al Mayadeen English
Source: Reuters
15 Oct 2025 12:15
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Germany must pivot its economic policy toward Africa to secure critical raw materials, says the Sub-Saharan Africa Initiative of German Business (SAFRI).

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People look on as mine workers converge at Lonmin Platinum Mine near Rustenburg, South Africa, on September 10, 2012, in an attempt to stop operations. (AP)

German economic policy must undergo a decisive “Africa shift” to address critical dependencies on raw materials and ensure long-term industrial resilience, Reuters reported, citing a paper released by the Sub-Saharan Africa Initiative of German Business (SAFRI).

SAFRI, a platform representing leading German business associations, emphasized that Africa should be treated not merely as a market for the future but as a strategic partner in economic diversification and growth.

“If we are serious about diversification, raw material security, and new growth areas, we must act now,” said SAFRI chairman Thomas Schaefer.

Raw materials, industrial resilience

The report highlights Germany’s heavy reliance on materials such as lithium, copper, and cobalt, which are essential for the country’s industrial transformation. SAFRI warned that existing dependencies on single suppliers pose significant risks, citing China’s growing control over key commodities.

“Export stoppages from China are already leading to declines in production in Germany today and thus also endangering Europe as an industrial location,” the paper said, according to Reuters.

To mitigate these risks, SAFRI called for legally binding strategic raw-material agreements with African nations, aimed at diversifying supply chains and strengthening bilateral economic partnerships.

Africa as a partner, not just a supplier

The initiative also emphasized the need to expand investment in Africa through the African Continental Free Trade Area (AfCFTA) and the implementation of European Union economic partnership agreements.

“We must no longer view Africa solely through the lens of risk and development aid,” Schaefer said.

“This is about a partnership-based approach with opportunities for both sides,” he added.

SAFRI’s recommendations reflect a growing concern in Germany and Europe about geopolitical tensions, supply chain vulnerabilities, and the need for industrial security in strategic sectors for Western industries.

China’s dominance explains SAFRI's urgency

Germany’s concerns over critical raw materials are echoed by the broader challenges facing Europe and the United States, where China maintains a near-monopoly over rare earth minerals. According to the Center for Strategic and International Studies (CSIS), China controls approximately 69% of global rare earth mining production and over 90% of refining capacity, while producing 93% of rare earth magnets used in high-tech and defense industries.

European industries, particularly the automotive sector, are already facing disruptions due to Chinese export restrictions on rare earth magnets. Major manufacturers, including BMW, Suzuki, and Ford, have reported halts in production lines, while the Italian auto parts lobby warned that dwindling stockpiles and ongoing export curbs could destabilize the sector.

In the US, dependence on rare earths poses serious risks to strategic sectors. Critical industries, including defense systems, semiconductors, and renewable technologies, rely heavily on these materials, leaving the country vulnerable to geopolitical pressures. The challenge is intensifying as Washington ramps up its aggressive stance toward Beijing, even while remaining dependent on Chinese supplies for essential military components. While Washington is investing in domestic production and processing, experts caution that achieving self-sufficiency will take years, leaving the US exposed to China’s leverage in the interim.

SAFRI’s call for an “Africa shift” gains added urgency in this context: forging strategic, legally binding agreements with African partners could reduce Europe’s and Germany’s dependence on single suppliers, providing a buffer against global supply shocks and geopolitical pressures, while strengthening long-term industrial resilience.