How South–South Learning Is Shaping Mineral Value Addition Strategies
As governments across the Global South seek to increase the benefits derived from their mineral resources, questions about how to move along mineral value chains, and at what cost, have become increasingly urgent. Against this backdrop, government officials from Africa, Asia and Latin America gathered in Indonesia in early December for a South-South intergovernmental dialogue on unlocking equitable mineral value addition.
The dialogue was co-organized by Indonesia’s National Economic Council and the Natural Resource Governance Institute (NRGI), with support from ViriyaENB. Officials from 10 countries—including Chile, the Democratic Republic of the Congo, Ghana, Indonesia, Mexico, Mongolia, Morocco, the Philippines, Zambia and Zimbabwe—participated alongside representatives from intergovernmental organizations, research institutions and development agencies.
Throughout the week, participants exchanged experiences, ideas and lessons on how Global South countries can use their minerals to drive sustainable development, including by moving along mineral value chains. The dialogue opened with government officials reflecting on how shifting global markets and geopolitics are reshaping opportunities and constraints for value addition, and how these dynamics are influencing national strategies. Participants also discussed the role of external partnerships and international public finance in translating strategy into practice.
These conversations were informed by a two-day site visit to the Indonesia Weda Bay Industrial Park (IWIP) in North Maluku, which offered a first-hand look at one of the country’s most significant mineral-processing hubs and the practical complexities and trade-offs involved in industrialization.
The final day broadened the lens further. Engagements with a wider group of Indonesian policymakers, industry representatives, academics, civil society organizations and development partners highlighted both the economic potential of value chain development and the environmental, social and governance (ESG) challenges that accompany it. Officials from other countries reflected on which aspects of Indonesia’s experience might be transferable to their own contexts and what forms of cross-country learning and adaptation could most effectively inform policy development. These conversations fed into deeper exchanges on strategy and industrial policy, investment attraction and partnerships, ESG and community impacts, and the institutional and political arrangements that underpin implementation.
Amid these rich discussions, six key takeaways emerged.
1. An increasingly complex global landscape for value addition
With global demand for minerals booming and the push for diversified supply chains intensifying, a window of opportunity has emerged for establishing value chain activities in new locations. Yet mineral-rich countries in the Global South face mounting obstacles to realizing their value addition ambitions. China continues to dominate critical stages of many mineral value chains and is increasingly deploying export controls on technologies, manufacturing equipment and key materials. In response, other major economies are channeling large amounts of public finance into their own industries while—particularly in the case of the United States—seeking to narrow the policy space available to Global South countries, including by pushing back more aggressively against export bans and partnerships with geopolitical rivals.
2. Different value chains, different strategies
This complex landscape reinforces the need for value addition strategies tailored to the specific opportunities and constraints of each value chain. Discussions reflected a shared recognition that not all forms of value addition are feasible, desirable or a priority in every context. Participants highlighted how differences in global market share, infrastructure requirements, technology risk, environmental and social impacts and broader economic needs shape government approaches—including how countries distinguish between near-term, “no-regret” opportunities and longer-term, higher-risk bets.
“The event has increased my awareness of the breadth of the industry policy toolkit and how its use should reflect the idiosyncrasies of individual countries.” - Martin Latorre, University of Chile
3. Long-term visions that are ambitious but iterative
Discussions underscored the importance of anchoring value addition strategies in long-term national visions that can survive political cycles and provide confidence and predictability for investors. Participants noted that countries which have made progress have sequenced investments and policy reforms—such as value addition requirements and local content targets—over time, while recognizing uncertainty and learning as inherent features of industrial transformation. This calls for governments to adjust course as markets, technologies and domestic conditions evolve. Close and sustained engagement with the private sector emerged as a critical success factor, highlighting the role of trust, transparency and open communication between governments and investors.
“The field visit was an eye-opener, reinforcing how much strategic focus and discipline matter for advancing equitable value addition.” - Marit Kitaw, U.N. Economic Commission for Africa
4. Intra-governmental coordination is vital but often elusive
Designing and implementing effective value addition strategies requires close alignment across multiple ministries and agencies, yet many countries struggle to achieve this in practice. Participants highlighted how fragmented responsibilities, overlapping mandates and inconsistent communication often undermine coordination across mining, energy and industrial policies, as well as sufficient integration of environmental and social considerations into decision-making. Successful approaches combine clear chains of command with formal mechanisms for interagency collaboration, backed by sustained political support.
“This event will help me advocate for institutionalizing coordination among key ministries in my country to have one voice and be on the same page.” - Shorai Kavu, Ministry of Energy and Power Development, Zimbabwe
5. A multistakeholder approach and clear communication are key
Value addition strategies involve trade-offs, take time to deliver results and, even then, may not fully meet public expectations. Participants noted that even well-designed strategies can falter if governments fail to bring citizens along, leaving policies vulnerable to pressure and reversal. Meaningful consultation and sustained engagement with a broad range of stakeholders are therefore essential. Governments need to clearly communicate objectives, timelines and expected benefits to build public trust—particularly in countries with histories of unfulfilled resource promises. Transparent, data-driven narratives presented in accessible language can help sustain political support across electoral cycles and strengthen the credibility of long-term policy commitments.
6. Strategic neutrality and the potential of South-South collaboration
In the face of intensifying geopolitical manoeuvring, many Global South countries are pursuing strategic neutrality through diversified partnerships that preserve policy autonomy rather than alignment with any single bloc. Participants discussed South–South cooperation as a key mechanism for enabling such neutrality. By coordinating rather than competing, countries can strengthen their bargaining power, reduce vulnerability to external pressures, and explore collaboration on standards, skills development, regional infrastructure and continued mutual learning. Cross-country learning was seen as particularly valuable for confronting shared challenges, reducing information asymmetries with major consumer countries and collectively exploring policy innovation.
“This event showed that South-South collaboration on critical minerals is possible—turning economic fragmentation to mutual benefits across the Global South.” - Niwa Rahmad Dwitama, Ministry of Foreign Affairs, Indonesia
Participants explored opportunities for continued dialogue and action—including a South–South Transition Minerals Learning Platform to be piloted by officials and researchers from a subset of participating countries, alongside future iterations of the broader intergovernmental dialogue. Through these mechanisms, South-South learning can support governments to make informed choices on mineral value addition.
Quotes have been lightly edited for clarity and length.
Authors
Nafi Quarshie
Africa Director
María Paz González
Chile Senior Program Officer
Thomas Scurfield
Senior Economic Analyst
Frenky Simanjuntak
Indonesia Consultant