Rare Earth Elements (REE): value chain analysis for mineral based industrialization in Africa

In addition to export earnings, African countries aspire to derive greater economic value from their mineral resources. One of the most assured ways is through linkage development. Besides resource endowments, other critical factors include the international trade environment and its impact on a country’s ability to successfully leverage its competitive advantage. In view of this, a value chain analysis is a useful tool to define options and permit a more thorough assessment of policy trade-offs. It is within this context that the African Development Bank initiated a study of a group of minerals with immense significance for the future. This study assesses the opportunities and challenges of harnessing the Rare Earth Element (REE) value chain to contribute to both the global transition to a low carbon future and increased socioeconomic development across African countries.