Wayne Lumbasi
Kenya is on the verge of finalizing a landmark critical minerals agreement with the United States that mandates all extracted resources be processed domestically. The announcement, made by Kenyan President William Ruto on the sidelines of the G7 Summit, signals a major victory for African nations seeking to dismantle decades-old economic models defined by the raw extraction of the continent’s wealth.
President Ruto confirmed that the strategic pact which covers rare earth elements is in its final development stages and expected to conclude shortly. He noted that during high-level discussions with G7 leaders, including U.S. President Donald Trump, the American administration expressed strong support for a mutually beneficial structure that ensures local refining.
The impending deal reflects a broader geopolitical recalibration across the African continent. Leaders are increasingly leveraging their vast mineral wealth to force foreign investors to build local industries rather than shipping raw ores directly to overseas refineries. Ruto directly compared Kenya’s negotiations to frameworks being pursued by neighbors like the Democratic Republic of Congo, emphasizing that natural resources can no longer simply be exported and processed elsewhere. The focus must remain on creating value in-country and across the continent.
The bilateral progress aligns seamlessly with a major multilateral offensive launched during the summit. G7 leaders officially unveiled the Critical Minerals Resilience and Production Alliance, a targeted initiative designed to break heavy dependencies on single-source suppliers for global mineral refining.
The G7 has set an explicit target to reduce global dependence on any single non-partner supplier for rare earths and permanent magnets to below 60% by 2030, tracking tens of billions of dollars across nearly two hundred projects globally. By financing and supporting local processing infrastructure in trusted partner nations like Kenya, Western states secure an insulated, “friend-shored” supply chain of refined components while helping African partners scale up their industrial sectors.
Addressing G7 leaders during a session on international solidarity, President Ruto urged Western powers to fundamentally rethink their economic engagements with Africa, shifting completely away from traditional aid toward industrial partnerships. He stressed that with Africa supplying the core resources powering the modern global economy, true global resilience depends on building economic stability directly within the continent.
He urged global leaders to work collaboratively to create value inside Africa, manufacturing and building industries locally to foster stronger global supply chains, larger consumer markets, and more resilient growth. While the commercial prospects of the deal are immense, the rapid finalization of the pact will now put the spotlight back on Nairobi to ensure the implementing frameworks feature strong environmental protections and transparent local community compensation models to guarantee the benefits are felt on the ground.
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