Securing East Africa’s Supply Chain Sovereignty: Navigating Global Shifts & Leveraging Critical Minerals for Regional Strength and Global Competitiveness
A REPORT about securing East Africa’s supply chain sovereignty.
Abstract
With increasing global tension, the concept of supply chain sovereignty comes into question. It represents the aspiration of nations to have greater control over key components within their supply chains to mitigate risks associated with foreign dependence. Particularly, it prompts a re-evaluation of sourcing strategies, especially within the technology sector.
Essential raw materials like cobalt, lithium, and coltan are foundational to modern technologies, powering batteries, handheld devices, and electric vehicles. East Africa – particularly the Democratic Republic of Congo (DRC) for cobalt, Rwanda for coltan, and Kenya having recently discovered coltan reserves – is a vital source of these high-demand materials. However, alongside this critical role lies a history of socio-economic challenges, including human rights abuses linked to extraction and a perceived economic imbalance, where local communities feel undervalued and under-compensated despite the global importance of their resources.
This report explores East Africa's emerging role in global technology supply chain dynamics, the geopolitical influences shaping this landscape, the ethical considerations required, and the opportunities that lie within the technology sector for regional growth and enhanced economic sovereignty. It draws insights from recent global shifts towards partnerships, examines East Africa's abundance of key resources essential to the production of emerging technologies, and considers the implications of initiatives like the US-Kenya partnership, which aims to boost semiconductor manufacturing in the East African nation through the CHIPS and Science Act. All of which could allow East Africa to integrate into the global technology supply chain further.
Introduction
Global supply chains, once celebrated as symbols of economic interdependence and efficiency, are increasingly viewed as vulnerable systems due to the geopolitical tensions that have increasingly emerged in recent years. Examples include the Russia-Ukraine conflict and the United States-China trade tensions. Closer to home, we have the Rwanda-DRC conflict and the crisis in Sudan. This armed conflict can be loosely connected to supply chain sovereignty as foreign powers are incentivised to intervene and support countries integral to the global supply chain, as seen with the Taiwan Relations Act. Loosely connected to supply chain sovereignty as foreign powers are incentivised to intervene and support countries integral to the global supply chain, as seen with the Taiwan Relations Act.
Supply chain sovereignty, defined as a nation's capacity to secure critical goods, technologies and services independently from foreign countries, has become a crucial goal for countries seeking to safeguard their economic stability and is encouraged by the Centre for Strategic and International Studies (CSIS). This shift towards supply chain sovereignty has since exposed the loopholes that come with interconnected economies, compelling regions like East Africa to rethink their role in the global economy.
The Democratic Republic of Congo (DRC), Kenya and Rwanda are among the countries in East Africa that find themselves in a strategic position to capitalise on their rich reserves of raw materials like cobalt and manganese, which are critical for emerging technologies like batteries, electric vehicles and semiconductors. The DRC alone accounts for over 70% of the world’s cobalt supply, an element indispensable to lithium-ion batteries used in electric vehicles and renewable energy storage. Amid claims of smuggling minerals across the border from DRC, Rwanda appears to be a leading exporter of coltan, vital for capacitors in electronics, with Kenya following suit, having recently confirmed finding coltan deposits in the country. Uganda has a supply of lithium, which is required for electric vehicle batteries and is set on maximising this resource’s potential. Given the global urgency to secure these materials, East Africa has become essential to meeting technological demand and boosting the supply chain for high-tech industries.
Although historically reliant on non-African suppliers and markets, East Africa is gaining prominence as global powers seek to diversify their supply chains from traditional hubs. This shift, driven in part by the U.S. policies aimed at securing access to critical minerals outside China’s influence, underscores the significance of regions like East Africa in global supply
chain strategies. However, this increasing global reliance on East African resources is accompanied by persistent ethical and economic challenges. Human rights abuses, including unsafe labour conditions and child exploitation in artisanal mining, have marred the reputation of the region’s mining sector. Communities and governments within these countries often feel shortchanged, as profits and high-value processing operations largely benefit non-African stakeholders, leaving local economies without fair compensation for their contributions to global trade.
The significance of raw materials to technology production underscores the need for a balanced and ethical approach to supply chain management. For East African countries, strengthening the autonomy and value of their supply chains offers both economic and strategic benefits. By capturing more of the value chain—such as refining materials or producing intermediate goods locally—East Africa can reduce dependency on foreign entities and increase its share of the revenue generated by its resources. Additionally, by addressing labour rights and implementing sustainable practices, East African nations can elevate their role in global supply chains, creating a foundation for more equitable economic partnerships. Implementation initiatives like the African Continental Free Trade Area (AfCFTA) help with this and offer a pathway for East Africa to deepen its integration into the global supply chain. These efforts align with a broader trend where countries seek to reduce reliance on traditionally dominant regions and build other regional alliances.
Methodology
This report employs a mixed-methods approach to analyse East Africa’s potential in global supply chains, with a focus on the semiconductor industry and critical raw materials. We begin with an extensive literature review, drawing from academic papers, industry reports and government publications from authoritative sources, including the Centre for Strategic and International Studies (CSIS), the White House, and the World Economic Forum. This helps establish a theoretical framework to understand the complex dynamics of supply chain sovereignty and East Africa’s positioning within it.
Quantitative data is gathered from sources of repute such as the World Bank, IMF, and East African national statistical offices to assess economic indicators, trade statistics, and mineral resource availability. This data enables us to identify trends in mineral exports, semiconductor demand and economic growth indicators. For qualitative insights, we examine policy documents such as the African Continental Free Trade Area (AfCTA), industry analyses, and expert commentaries, which reveal the region’s challenges and opportunities in supply chain development as well as their impact on regional integration.
To deepen our analysis, we adopt a case study methodology to explore specific instances of supply chain dynamics relevant to East Africa. These cases include the U.S.-Kenya partnership in semiconductor development, India’s autonomy over their electrical device manufacturing, the Israel-Hezbollah conflict as an example of supply chain vulnerabilities, and Taiwan Semiconductor Manufacturing Company’s (TSMC) expansion into the U.S to highlight global shifts in semiconductor manufacturing. Through these cases, we gain insights into the factors influencing supply chain sovereignty.
Our analysis incorporates a geopolitical perspective, assessing East Africa’s strategic significance and the consequences of involvement in the global technology supply chains. A stakeholder analysis further identifies key players in the region’s supply chain ecosystems, including national governments, regional bodies, international organisations, multinational corporations, and local industries. We evaluate the interests and influences of these entities, providing critical insights into the subtleties shaping East Africa’s potential in global supply chains.
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