“Unlocking Africa’s Potential: Developing Sustainable Energy Supply Chains for Economic Growth”
Africa is facing a critical challenge in the global energy transition as it risks losing out on the economic benefits of its abundant mineral resources. With over 40% of the global reserves of transition minerals, including critical components like cobalt for lithium-ion batteries, Africa stands to play a crucial role in the green economy. However, current trends show that the continent is at risk of once again exporting raw materials while others reap the financial rewards and technological benefits.
According to economic modeling from Publish What You Pay, Africa could boost its GDP by at least $24 billion annually and create 2.3 million jobs by developing robust manufacturing and trade policies for transition minerals supply chains. The potential for job creation lies in manufacturing products like solar panels and batteries, which would require technology transfer and upskilling of a new green workforce on the continent.
Despite these opportunities, the world’s wealthiest nations are prioritizing their own economic interests and aiming to control critical mineral supply chains. The EU, UK, and the US are implementing strategies to process and source minerals within their borders, limiting Africa’s ability to capture more economic value in global transition mineral chains.
In response to these challenges, some African leaders are taking steps to ensure they benefit from their mineral resources. For example, Zambia recently announced a state investment firm that will hold a share of all future critical mineral production. However, individual efforts like these are not enough to address the broader issue at hand.
To truly benefit from its mineral wealth and play a central role in the global energy transition, African nations must work together to develop a coordinated industrial strategy. This includes leveraging regional economic integration through initiatives like the African Continental Free Trade Area and the African Union’s green minerals strategy.
Above all, African leaders must commit to ensuring that the continent’s mineral wealth benefits its own people. Transparent governance of the mining sector, robust laws to protect communities and the environment, and the development of local industries are essential for driving sustainable development.
As discussions around equity, trade, and development in the minerals scramble continue, Africa must assert its position as a leader in the new, green economy. With the necessary resources, talent, and need for sustainable development, the continent has the potential to accelerate the global energy transition and shape its future as more than just a supplier of raw materials. It’s time for Africa to take its rightful place on the world stage.