Elizabeth Antidius Shumbusho | Africa Guardian
Africa is emerging as a prime investment destination for the global energy transition, driven by its abundant reserves of critical minerals, according to Akinwumi Adesina, President of the African Development Bank (AfDB) Group.
Speaking at the Africa Investment Forum (AIF) Market Days on December 4 in Rabat, Morocco, Adesina highlighted the continent’s pivotal role in the green energy revolution. “Africa has a unique opportunity to move up the critical minerals value chain with investments in value-adding industries,” he remarked during the forum, themed “Leveraging Innovative Partnerships for Scale.”
The annual event, which showcases and advances investment opportunities across Africa, brought together over 1,770 investors representing more than 200 institutions. Participants engaged in 42 investment boardrooms to facilitate private and public sector projects.
Africa’s Mineral Wealth and Green Energy Potential
Africa’s vast deposits of critical minerals make it indispensable for the global energy transition. The continent holds:
- 95% of the world’s chromium
- 90% of platinum group metals
- Two-thirds of global cobalt reserves
- 30% of lithium and manganese
- 20% of graphite
These minerals are vital for technologies such as electric vehicles (EVs) and battery energy storage systems. The EV and energy storage sectors are projected to grow from $7 trillion in 2030 to $59 trillion by 2050, creating immense demand for Africa’s resources.
A Bloomberg NEF report underscores Africa’s competitive edge, revealing that developing a lithium-ion precursor battery plant in the Democratic Republic of Congo (DRC) is three times less expensive than in the US, China, or Poland.
Investment and Risk Perception
Adesina called on global investors to support Africa’s ambition to become a green energy hub. “Africa is not as risky as perceived,” he emphasized, challenging negative stereotypes about investment risks on the continent.
The Africa Investment Forum has already mobilized $180 billion in investments and facilitated $30 billion worth of transactions since its inception. Success stories include Rwanda’s $300 million Kigali Innovation City project, funded through Africa50, which began construction in September.
A Broad Range of Opportunities
Projects showcased at this year’s AIF Market Days span diverse sectors, including:
- Renewable energy
- Mining
- Railways
- Food and agriculture
- Water and sanitation
- Seaports
- Manufacturing and pharmaceuticals
Adesina reiterated Africa’s potential to lead in green energy development while offering competitive investment opportunities for global stakeholders. “Africa can drive the energy transition not just as a supplier of raw materials but as a leader in value-added industries,” he concluded.
As the world pivots toward sustainable energy, Africa’s role in the global energy transition underscores its growing importance as an economic powerhouse.
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