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Africa, endowed with around 30% of the world’s mineral reserves, including essential resources like cobalt, lithium, and nickel, is poised to play a pivotal role in the global green energy transition.
These minerals are integral to the production of electric vehicle batteries, solar panels, and wind turbines, all of which are critical to efforts aimed at reducing carbon emissions and achieving net-zero targets by 2050.
During a recent Expert Group Meeting (EGM) on Africa’s Critical Minerals, held in Addis Ababa on December 16–17, 2024, experts underscored the continent’s potential to leverage its vast mineral resources for trade, industrialization, and overall economic development. The event, hosted by the African Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA), highlighted the critical opportunity Africa has to capitalize on its mineral wealth but cautioned that action is needed to fully harness these resources.
Antonio Pedro, Deputy Executive Secretary of the ECA, emphasized that while Africa has established the right frameworks for developing its mineral resources, including the African Mining Vision (AMV) and the African Green Minerals Strategy, progress remains slow. He stressed that the continent could miss out on significant economic benefits if it does not act more decisively. “There is no reason why we should have a repeat of the scramble for Africa, especially now that greater political and economic integration has occurred,” said Pedro, referring to initiatives like the African Continental Free Trade Area (AfCFTA), which could play a key role in advancing regional development.
Research conducted by the ECA has shown that the global demand for critical minerals will surge as countries transition away from fossil fuels in favor of cleaner energy solutions. By 2050, the global transition to green energy is expected to require up to three billion tons of minerals to deploy technologies such as solar, wind, and geothermal energy systems. Africa, with its rich reserves, is well-positioned to meet this demand. The Democratic Republic of Congo alone accounts for 70% of the global supply of cobalt, a key component in electric vehicle battery production.
However, despite its mineral wealth, Africa has yet to fully realize its potential. According to the United Nations Conference on Trade and Development (UNCTAD), the continent generates only about 40% of the revenue it could from its mineral resources. Experts at the EGM argued that Africa could unlock substantial economic growth by adding value to its critical minerals and developing regional value chains. This process could spur industrialization, create jobs, and transform Africa into a competitive hub for green industrialization.
The EGM also underscored the need for Africa to make better use of its trade agreements, particularly the AfCFTA, which connects 1.3 billion people and a combined GDP of over US$3.4 trillion. However, intra-Africa trade still accounts for just 15% of the continent’s total trade, signaling that more must be done to integrate African economies and capitalize on the demand for critical minerals.
Participants at the EGM recommended further research to guide policy development, including a baseline study to assess how African minerals are currently used and traded. This would provide valuable insights into the continent’s experience with commodity booms and busts and inform future trade and policy strategies.
In the face of growing global demand for critical minerals, Africa has an opportunity to leverage its natural resources to drive economic development and secure a sustainable, self-reliant future. However, achieving this will require stronger political will, enhanced trade integration, and the development of mineral-based industries that can add value and create jobs. The key to Africa’s success will lie in its ability to act decisively, build regional value chains, and negotiate better terms with external partners to ensure that the continent reaps the full benefits of its mineral wealth.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/africa-eyes-critical-minerals-to-drive-trade-and-sustainable-development/
