Africa holds the keys to the world’s clean energy future, but so far from deriving its total value. The continent has been locked out of most of the derivable values. Despite supplying the bulk of the raw materials powering the global energy transition, the continent currently captures less than 1% of the wealth generated from manufacturing clean energy technologies and their components.
This stark imbalance is laid bare in a new report by the International Energy Agency (IEA), which urges African nations to climb higher up the global value chain, from mere extractors of minerals to processors, manufacturers and innovators in clean technology. A continental-hub of wealth of resources, yet a poverty of returns due to lack of visionary political-leadership will and selflessness.
From cobalt in the Democratic Republic of the Congo to manganese in South Africa, Africa’s mineral riches are unrivaled. The continent provides about 75% of global manganese, 70% of cobalt, and nearly 20% of copper, which represent all the critical ingredients in batteries, solar panels and electric vehicles.
Yet most of the financial benefits from these resources are realized elsewhere, in countries that refine, process, and manufacture finished technologies. The IEA report describes this as a “lost opportunity” for a continent that remains heavily dependent on commodity exports and vulnerable to market shocks. “African countries have the potential to change this,” the report notes, emphasizing the opportunity for economic growth, job creation and energy access through cleaner industrialization. And moving up the chain, beyond localized mining is a most needed possible inevitability for the now.
Mineral production already represents about 8% of government revenues in resource-rich African countries. But the IEA argues that the next phase of development should focus on value addition such as processing, smelting, refining and ultimately manufacturing.
In East Africa, for instance, there’s potential to produce spherical graphite for battery anodes, a crucial component in electric vehicles. South Africa and Gabon could scale up the production of high-purity manganese sulphate, while Morocco is well-positioned to expand its output of purified phosphoric acid. Meanwhile, the Democratic Republic of the Congo and Zambia, already major suppliers of cobalt and copper, could anchor regional hubs for processed materials. These aren’t just industrial moves, they are steps toward economic sovereignty in a world pivoting to green energy. Because the promise of clean manufacturing can never be over emphasized.
The IEA report also highlights Africa’s potential to become a manufacturing player in clean energy technologies themselves. North African countries, building on their existing automotive industries, could enter the electric vehicle (EV) and battery markets.
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