Africa Holds Key to the Economy of the Future

Israel

….. But Has Not Yet Opened the Door: Samuel Shay on the Rare Metals Revolution

Opinion: By Samuel Shay, an entrepreneur and economic strategist active across Africa, the Middle East, and the United States

An unusually sharp and candid analysis of one of the greatest economic missed opportunities on the African continent in recent decades: the lack of systematic development of the rare metals and specialty metals industry, precisely at a time when the entire world is entering a technological era in which these metals are the most critical raw materials.

According to Shay, Africa continues to operate under an outdated mining model, relying almost exclusively on classical metals such as gold, copper, lithium, and cobalt. Despite their importance, these metals generate relatively limited value, especially when exported as raw materials, without processing, without complementary industry, and without control over the value chain.

In contrast, the new global economy, driven by semiconductors, advanced communications, smart energy, artificial intelligence, electric vehicles, and security technologies, depends on a small but critical group of rare metals and specialty metals. These metals are not only more valuable than gold in industrial terms, but also constitute a strategic bottleneck for states and corporations alike.

Today, China controls almost the entire value chain of rare metals: from mining, through chemical separation, to advanced processing and component manufacturing. This dominance grants China enormous economic, industrial, and geopolitical power. Shay emphasizes that there is no objective justification for this situation, as a significant portion of the world’s rare metals reserves are located דווקא in Africa.

In his view, the core problem is not geological, but political, regulatory, and conceptual. Most African states have not defined rare metals as a strategic national asset, have not built dedicated regulatory frameworks, have not created advanced licensing mechanisms, and have not opened the market to supervised private concessions. The result is stagnation, precisely as global demand continues to surge.

Shay stresses that from a technological standpoint, there is no longer a meaningful barrier. Over the past decade, advanced mining, separation, and processing technologies have been developed that allow rare metals to be extracted as part of existing mining operations, particularly in gold and copper mines. In other words, a dramatic economic leap can be achieved without opening new mines, but rather through intelligent upgrading of existing systems.

According to his assessment, at least five to seven types of rare metals are available for immediate commercial extraction in Africa. Among the most significant are:
Neodymium and praseodymium for advanced magnets.
Dysprosium and terbium for motors, electric vehicles, and energy industries.
Lanthanum and cerium for electronics, refining, and purification.
Yttrium and europium for displays, lasers, and advanced lighting.
Scandium for aerospace, aviation, and lightweight alloys.
Platinum group metals and palladium for defense, chemical, and energy industries.

However, the key point in Shay’s analysis is this: mining alone is not development. A country that limits itself to extracting metal from the ground and selling it as raw material forfeits most of the economic value from the outset. Real development begins with building industry around the metal.

He outlines a clear economic development model: the establishment of dedicated industrial zones for rare metals, including chemical separation facilities, refining plants, alloy production, and semi finished manufacturing. Around these zones, complementary industries can be developed: magnet manufacturing, electronic components, electric vehicle parts, energy systems, and even components for defense and civilian industries.

Such a model creates a complete local value chain: high quality employment, professional training, technological know how, domestic taxation, value added exports, and reduced dependence on China and external markets. According to Shay, this is the only way to turn natural resources into a true engine of growth rather than an economic curse.

In this context, Shay proposes an additional strategic lever: a “metals for projects” model with the United States. Under this framework, African states could grant long term access to rare metals, in exchange for full American financing of mining, processing, and manufacturing development, alongside the construction of water, energy, transportation, education, and industrial infrastructure. Such a model enables accelerated development without imposing heavy public debt burdens.

Shay emphasizes that Israel also has a natural role to play in such a process. Israeli companies possess proven expertise in smart mining, process optimization, chemical separation, digital control systems, and the construction of advanced industrial facilities. Israeli African cooperation can generate mutual value while preserving African sovereignty and ensuring responsible resource management.

In conclusion, Shay argues that Africa is not poor in resources, but poor in decisions. Rare metals represent a historic lever for economic, industrial, and technological development, if used correctly. The world has already moved to the next stage. Countries that continue exporting raw materials will be left behind. Countries that build industry around their resources will change their destiny for generations.