[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Sign-in] [Mail] [Setup] [Help]
Status: Not Logged In; Sign In
|
World News See other World News Articles Title: Africa Set To Test Critical-Minerals-Backed Currency Authored by Darren Taylor via The Epoch Times (emphasis ours), Major countries and regional blocs in Africa are throwing their weight behind an ambitious plan to establish a “non-circulating” currency backed by critical minerals, which are crucial to technological development, defense, and economic growth. Analysts say a denomination based on commodities could reduce Africa’s reliance on foreign currencies—especially the U.S. dollar—and decrease its dependence on loans from China, Europe, the United States, and global financial institutions like the World Bank. The proposed monetary unit is provisionally called the African Units of Account (AUA), according to a plan formulated by the African Development Bank (AfDB) and KPMG South Africa. The new currency is supported by the African Union and South Africa, the continent’s biggest economic power, and could soon be piloted in a test market. The proposal says the AUA would be traded on the international foreign exchange market, and would be less susceptible to fluctuations in individual African currencies or the U.S. dollar, making it more attractive to investors. Economists say the backing of the currency with mineral reserves could reduce the risk perceived by lenders, potentially leading to lower interest rates on loans for development projects, especially in Africa’s energy sector. While some in Africa’s mining industry are optimistic about the potential of such a currency, others warn that China could “weaponize” it, given Beijing’s dominance in global critical minerals supply chains. The International Energy Agency and other organizations project that demand for critical minerals like cobalt, copper, platinum, and lithium will spike fourfold shortly, with global powers in a race to secure supplies. Africa is at the center of the competition. It’s the world’s poorest and least developed region, but it holds almost a third of global reserves of critical minerals, according to the International Monetary Fund. The minerals are essential for modern technologies like smartphones and computers, in electricity grids, and in weapons such as missile systems, fighter jets, and warships. U.S. President Donald Trump regards critical minerals as vital to the future of the United States, and he wants to secure supply chains as soon as possible. The United States Geological Survey (USGS) lists 50 minerals essential to America’s economy and national security, including cobalt, lithium, manganese, platinum, tantalum, tungsten, and vanadium. Most are found in Africa. South Africa, for example, is the world’s largest producer of manganese and platinum; Zimbabwe is one of the world’s top lithium producers, and the Democratic Republic of Congo (DRC) mines approximately 70 percent of the world’s cobalt. “A well-managed and structured critical minerals currency could strengthen Africa’s hand in global resources markets and free it to leverage its abundant natural resources,” said Moeletsi Mbeki, a South African economist. This, he told The Epoch Times, is especially important at a time when the continent seeks to mitigate economic damage from global uncertainty caused by conflicts and “market turmoil.” “If we consider the tariffs that Trump’s slapping around, and global trade wars happening now and in the future, maybe this new currency could prevent Africa from being collateral damage,” said Mbeki. The AfDB and KPMG proposal said the currency would be backed by a basket of some of Africa’s most important critical minerals, and would be part of an initiative to create “a more unified and stable financial system.” The framework document suggested that key producers of critical minerals pledge a pre-agreed proportion of proven commodity reserves to “promote regional financial integration, co-operation and cross-border trade.” Moono Mupotola, AfDB director in Southern Africa, told The Epoch Times the bank is deciding on the minerals to be included in a “test” and is set to select a “pilot country” where a study of the feasibility of the new currency will happen. Mbeki said the currency could help Africa take ownership of its critical minerals and their processing. “We have all these minerals, but we don’t benefit much from them, because Africa’s value chain is so weak,” he explained. “We process less than five percent of minerals domestically, which means the real profits are earned by foreigners, especially China. “If we can use a common currency to unite Africa’s mining industries and their governments, it’s a real step towards more independence and greater local beneficiation and profits going into African pockets.” Professor Hambaba Jimaima, international relations researcher at the University of Zambia, said Africa’s steps toward the currency are an indication that it wants as much economic independence as possible from both China and the West, as it prepares to be a prominent player in world affairs. “Africa’s tired of being beholden to the West for aid and trade and to China for investment and loans,” he told The Epoch Times. “It wants to use critical minerals and a currency connected to them as a basis for industrialization and greater political clout. “Africa has given away control of critical minerals to China. Africa wants this control back. It wants to mine and refine its own resources. Critical minerals are Africa’s trump card. The currency must be seen in this light.” But other experts, like Ugandan economist and the East African country’s former finance minister, Ezra Suruma, are skeptical. “Critical minerals are not yet the safe investment that gold is,” he told The Epoch Times. “Prices are volatile. If there’s more stability, then certainly the idea of a critical minerals currency is worth investigating.” Frank Blackmore, KPMG South Africa lead economist, told The Epoch Times several factors hamper the creation of a resource-based currency. “It’s going to take a long time for most African producers to reap full reward from their critical minerals,” he said. “A lot of places don’t have adequate electricity; transport nodes are rundown. All of this counts against production. There are also shortages of skilled labor.” Mbeki suggested, though, that the initial pool of minerals be used as collateral to fund development and industrialization. “That fund could be used to encourage locally-controlled exploration and mining,” he said. Mbeki also warns that China, as much as it often declares itself dedicated to African progress, could yet be “a fly in the ointment” in the establishment of a critical minerals-backed currency. “China doesn’t usually support plans that could erode its power,” said the economist. “I can foresee the Chinese not being very cooperative in this regard, and they could even weaponize the currency to try to make sure that African countries toe their lines. “As long as the Chinese have so much power in critical minerals supply chains, this new currency is on shaky ground.” Poster Comment: Trump Says Homeless Need to Move Out of DC IMMEDIATELY, but Criminals Don’t Have to Because ‘We’re Going to Put You in Jail Where You Belong’ https://www.thegatewaypundit.com/2025/08/trump-says-homeless-need-move-dc- immediately-criminals/ Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: All (#0)
Illinois Gov. JB Pritzker Opens Door to 2028 Presidential Run — ‘Can’t Rule Anything Out’ (VIDEO) (He is fat and Jewish and corrupt as hell. Plus all those debts in Illinois are a problem) The Truth of 911 Shall Set You Free From The Lie
Teachers’ Union Chief Randi Weingarten Questioned Over Scandalous Spending Including $100,000 Limo Bill The Truth of 911 Shall Set You Free From The Lie
U.S. Marshals Rescue Missing Teen During Operation to Nab MS-13 Gang Member in Maryland The Truth of 911 Shall Set You Free From The Lie
Pritzker just needs to tap into the Comprehensive Annual Financial Reports to shake loose some funds to pay off those debts. ;) "When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
|
||
|
[Home]
[Headlines]
[Latest Articles]
[Latest Comments]
[Post]
[Sign-in]
[Mail]
[Setup]
[Help]
|
||