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Africa at a crossroads: between the USA and BRICS in the struggle for resources


February, 05 2025
watermark Economic news

The long-term trend towards dividing the world into two trading blocs is becoming more and more obvious, especially against the background of Trump's tariff policy. For African countries rich in minerals, this creates a dilemma. They seek to make the most of their resources while maintaining neutrality, but may soon face the need to choose between the United States and BRICS.


Africa has significant mineral resources: 20% of the world's copper reserves, 50% of manganese and cobalt, 90% of platinum group metals, as well as impressive reserves of lithium, gold and rare earths. 


However, their development is hampered by political instability, corruption and weak infrastructure. Nevertheless, global demand for resources increases interest in the region, giving African countries more opportunities to influence the terms of cooperation.


The West offers capital and expertise, but Trump's policy of tariffs and aid cuts complicates cooperation. China, in turn, is actively investing in mining, but exports raw materials for processing at home, limiting the benefits of African countries. To effectively manage its wealth, Africa can take advantage of Indonesia's experience by obliging companies to process raw materials domestically.


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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.