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Nigeria Partners with South Africa to Unlock Mineral Wealth and Diversify Economy

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In a landmark move aimed at enhancing regional collaboration and economic diversification, Nigeria and South Africa have signed a Memorandum of Understanding (MoU) to deepen cooperation in the mining sector. The agreement, signed on April 17, 2025, in Abuja, marks a significant milestone in the two countries’ shared goal to leverage mineral wealth for sustainable development and industrial growth across Africa.

A Historic Partnership for a New Mining Era

The agreement was formalized between Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake, and South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe. It reflects both countries’ recognition of the strategic role mineral resources play in driving long term economic transformation.

For Nigeria, whose mining sector contributes less than 1% to its GDP, the partnership offers an opportunity to revitalize a largely untapped industry. With over 23 commercially viable minerals including lithium, gold, limestone, and iron ore, Nigeria stands to benefit significantly from South Africa’s advanced mining expertise and infrastructure.

Key Areas of Cooperation

The MoU outlines several critical areas for collaboration including:

Geological Mapping and Exploration

Both countries will deploy drone technology and spectral remote sensing to enhance geological mapping and identify new mineral resources.

Geoscientific Data Exchange

Nigeria’s Geological Survey Agency and South Africa’s Council for Geoscience will collaborate in sharing and managing valuable geoscientific data to support mineral development.

Capacity Building and Technology Transfer

The agreement includes training programs for Nigerian professionals in mineral processing, value addition, and advanced laboratory techniques such as Laser Ablation Inductively Coupled Plasma Mass Spectrometry (LA ICP MS).

Joint Exploration Projects

Special focus will be given to agro minerals and energy minerals, particularly in states like Kaduna, Zamfara, and Nasarawa, where Nigeria sees high potential for resource driven development.

A Step Toward Economic Diversification

As Nigeria continues its push to reduce dependence on oil revenue, mining presents a viable alternative path for national revenue generation and job creation. Speaking at the signing, Dr. Dele Alake emphasized that the partnership would help transform Nigeria into a mining powerhouse by harnessing South Africa’s decades of experience and technological advancement.

“This is a bold step toward diversifying our economy and creating wealth from our mineral endowments,” Alake said. “We are not just seeking technical assistance we are building a mutually beneficial partnership that will reshape Africa’s mining narrative.”

Supporting Africa’s Continental Goals

Beyond bilateral gains, the agreement aligns with the African Continental Free Trade Area (AfCFTA) objectives of fostering intra African trade, collaboration, and shared growth. By integrating regional efforts and reducing reliance on external actors, Nigeria and South Africa aim to take greater ownership of the continent’s rich mineral assets.

South Africa’s Minister Gwede Mantashe reaffirmed his country’s commitment to supporting African led solutions. “This cooperation will strengthen our economies and set a foundation for sustainable industrial development throughout Africa,” he noted.

Implementation and Outlook

Following the agreement, technical teams from both countries will begin pilot initiatives in mineral rich Nigerian states. These efforts are expected to attract foreign investment, stimulate local economies, and establish robust value chains that promote local beneficiation and exports.

This partnership is more than symbolic it signals a new era in African mining, where collaboration, data sharing, and mutual capacity building become the foundation for success.

Conclusion

The Nigeria South Africa mining cooperation agreement represents a critical step toward unlocking Africa’s mineral potential through strategic partnerships. As both nations move to implement the MoU, the rest of the continent and the global mining industry will be watching closely. If successful, the partnership could serve as a model for other African nations seeking to build resilient, diversified economies grounded in sustainable resource development.

 

Read Also: Mozambique: IOM Deputy Director Urges Long-Term Solutions For Climate-Displaced Communities

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