Analysis-Africa’s minerals value-add drive interests investors but faces energy hurdle

By Olivia Kumwenda-Mtambo CAPE TOWN, Oct 19 (Reuters) As African nations push miners to build refineries and smelters at home, government and industry officials say a major obstacle risks crimping investment: a shortage of cheap, reliable electricity. From Guinea s bauxite to Zimbabwe s lithium, governments are using export curbs, tax incentives and access to deposits to encourage local processing and capture more value from their mineral wealth. Investors ​including the US International Development Finance Corporation and Africa Finance Corporation are backing African processing projects and plan to do more. But the ‌decline of South Africa s ferrochrome and steel processing industries highlights the risks when power is expensive or unreliable. GUINEA S DOWNSTREAM BET Guinea is one of the boldest examples of Africa getting more value out of its mining resources. It recently overtook Australia as the world s largest bauxite producer and exporter, with most of its exports going to Chi