The world is still watching to see if President Trump and Ukrainian President Volodymyr Zelensky can come to an agreement over a mineral deal, which is seemingly losing momentum. This precious natural resource is seen as one of the key components to brokering peace in Ukraine, but the Trump administration would be wise to look beyond those borders — critical minerals have serious implications around the world.
China’s recent decision to ban the export of key critical minerals to the U.S. — and its subsequent announcement of new restrictions on the export of drones and related components — have significant security ramifications. These minerals are core components in the production of semiconductors, military technologies, explosives and advanced missile systems needed by the U.S. for defense, industrial security and global competitiveness.
China’s dominance in the global production and processing of critical minerals is potentially a “single point of failure” in America’s longstanding leverage of its military strength to achieve a more secure and safer world. For the sake of America’s economy and national security, now is the time to consider establishing a U.S.-Africa Security Defense Tax Credit.
This credit would incentivize American companies to innovate and invest in Africa’s critical minerals sector. This diversification of supply chains — while simultaneously building U.S. domestic capability and reserve stockpiles — can be most efficiently and effectively achieved through a strong partnership with Africa.
Africa is home to some of the largest untapped reserves of critical minerals — the Democratic Republic of Congo alone accounts for over 70 percent of the world’s cobalt production. There’s absolutely no reason for the U.S. to continue receiving 70 percent of our rare earth elements from China, and this alternative and reliable source from Africa would mitigate our reliance on the Chinese Communist Party and its subsequent vulnerabilities.
Our proposed tax credit would help U.S. firms invested in the production and processing of strategic minerals in African Growth and Opportunity Act-eligible countries. The tax credit would also permit tax-free repatriation of profits. These benefits would strengthen national security, bolster American competitiveness and advance U.S.-Africa partnerships more generally.
Simply put, a diversified supply chain is a more secure supply chain. Investing in Africa reduces our strategic vulnerabilities and builds a more resilient defense industrial base. This credit would also immediately position U.S. companies as preferred investors in Africa, enabling them to compete with China and other nations that are already heavily investing in the continent.
And by extending these incentives to African Growth and Opportunity Act-eligible countries, the U.S. reinforces its commitment to Africa as a trusted partner, fostering economic development and stability across the region.
China’s Belt and Road Initiative has already positioned Beijing as a dominant player in African infrastructure and resource development. Europe, meanwhile, ...
