
This article is part of a collection produced in collaboration with the African Development Bank to celebrate its sixtieth anniversary. To delve into the Bank’s history and its current initiatives across the continent, visit our dedicated portal.
Africa’s significant reserves of critical minerals and renewable energy offer a unique opportunity to create local value chains and foster green growth, as per insights from experts at the Africa Investment Forum (AIF) taking place in Morocco this December.
The continent is estimated to possess 95% of the global supply of chromium, 90% of platinum group metals, two-thirds of the world’s cobalt, and 30% of lithium and manganese, along with 20% of graphite. With forecasts suggesting that the electric vehicle and battery market will grow from $7 trillion in 2030 to $59 trillion by 2050, Africa is poised to play a vital role in this evolution.
During a panel at AIF, investors, entrepreneurs, and industrialists from Africa and Asia explored how to capitalize on the rising demand for Africa’s essential minerals, driven by the energy transition. Backed by the Japanese government and the Fund for African Private Sector Assistance (FAPA), the discussion emphasized the importance of local processing and value addition. By processing minerals within the continent, Africa can increase the value of its exports and generate job opportunities, thus revitalizing local economies.
Dr. Kodjo Busia, Executive Director of Green Africa Minerals, based in Tanzania and Dubai, remarked on the persistence of post-colonial export models of raw materials despite gaining independence, referencing the notable structural adjustment policies of the 1980s and 1990s that failed to achieve industrialization.
Transforming the Development Model
Nonetheless, he expressed optimism regarding an ongoing transformation. “African leaders have recognized the need to add value to our resources to fully harness our natural wealth,” he stated.
This shift is evident in the 2008 Africa Mining Vision strategy, developed by the Mineral Development Center in Ethiopia, which aims to reshape export patterns through policy incentives, skills development, and regional value chains.
Samuel Olu Faleye, whose company SAGLEV Inc. manufactures electric vehicles (EVs) in Lagos, emphasized the growing demand for EVs, noting, “In the past year, it has become nearly impossible to run ride-hailing services without an electric vehicle.”
With over 6,000 ride-hailing drivers in need of vehicles, he highlighted the financial hurdles: “The funding gap for electric vehicle purchases is significant, especially considering the rapid industry changes.”
Faleye advocated for blended financing and public-private partnerships to develop charging infrastructure, suggesting that industrial hubs share resources, services, and technical expertise.
Strengthening Bilateral Partnerships
Tatsushi Amano, Managing Executive Officer at Japan Bank for International Cooperation (JBIC), discussed the evolving landscape of development finance, stating, “Currently, many Export Credit Agencies are shifting towards development finance.”
He elaborated that JBIC has extended its scope from merely supporting Japanese exports to financing projects that provide vital materials for Japanese industries. Amano pointed out that budget constraints are not the main barrier; rather, it is the lack of access to specialized knowledge. “Gaining expertise in various areas will be crucial for realizing tangible benefits,” he emphasized.
Catherine Zhang, Vice Chairman of the China Africa Business Council and President of Rockcheck Group, highlighted the growing trade relationship between China and Africa, stating, “This year, trade between China and Africa has reached $282 billion.”
Her company, founded by her parents three decades ago, originally focused on steel production and now imports over 10 million tons of iron ore annually, with Africa being a key element of its supply chain.
Catherine Kim, Director of Corporate Relations at the South African Chamber of Commerce in Korea, reflected on her country’s journey from poverty in the 1960s to its current status as a donor nation.
She noted South Korea’s existing supply chain challenges, stating, “87% of our production relies on trade, making us highly susceptible to supply chain disruptions.” This has led Korean manufacturers to pursue new partnerships in Africa, including investments in Zambia’s mineral sector from companies like Samsung and LG.
Solomon Quaynor, African Development Bank Group vice president for private sector, infrastructure, and industrialization, concluded the panel with a strong commitment to fostering local value addition in the green minerals sector. “Africa will not return to outdated methods of industrialization in the green minerals arena… We aim to progress along the value chain,” he asserted.
He reiterated Africa’s preparedness for transformation, supported by institutions like the Africa Finance Corporation and the African Development Bank. “We will utilize equity and mobilize debt to facilitate our transformation,” he concluded.