Kenya to restrict raw exports of valuable minerals
The government of Kenya has announced plans to restrict direct export of valuable raw minerals such as gold. Principal Secretary for Mining, Elijah Mwangi, confirmed the report and said the move is part of broader efforts across Africa to capture more value from the continent’s rich mineral resources by refining and processing them locally, rather than exporting them in raw form.
PS Mwangi noted that the plans marks a significant shift in its mineral policy aimed at boosting government revenues and promoting local industries. The policy aligns with similar measures already in place in other African countries, such as Ghana, Tanzania, and the Democratic Republic of Congo (DRC), which have sought to retain more value from their mineral wealth by processing minerals locally.
Objective
These export restrictions are designed to prevent raw minerals from leaving the continent without generating higher revenue through taxation and local industry development. According to McKinsey, Africa could earn between USD 200 million and USD 2 billion annually by 2030, while creating up to 3.8 million jobs through local processing.
Africa holds a significant share of global mineral reserves, including 92% of platinum, 56% of cobalt, 54% of manganese, and 36% of chromium, all of which are critical to green technologies. However, much of these raw materials are currently exported for processing elsewhere, leading to loss of economic value. For example, Reuters reported that $15.1 billion worth of African gold was exported to the UAE in 2016, often without official records or taxes benefiting the producing countries.
Kenya’s new strategy reflects a growing desire across Africa to harness its natural resources for domestic economic growth. However, there are concerns about whether this approach will automatically yield benefits. As Benedikt Sobotka, CEO of the Eurasian Resources Group, has pointed out, several African countries have abandoned similar policies after struggling to implement them, largely due to infrastructural deficits and challenges in developing the necessary processing capacities. Therefore, while the policy has great potential, stakeholders emphasize the need for careful planning and investment in infrastructure to ensure its success.
