Africa's Role in the Global Green Transition: Challenges and Opportunities
Key Ideas
  • Africa holds vast reserves of critical minerals essential for green technology, making it a key player in the global green transition.
  • Despite the scramble for Africa's resources, the continent needs to shift towards local processing and manufacturing to maximize economic benefits.
  • Initiatives in countries like the DRC, Zambia, and South Africa are promoting investment in battery manufacturing and processing of critical minerals.
  • Stronger industrial policy interventions, like minimum beneficiation requirements, are crucial for Africa to drive investments in local processing and manufacturing.
Africa is at a turning point in the global shift towards a low-carbon economy, with a high demand for critical minerals like cobalt, lithium, and platinum for electric vehicles and renewable energy systems. Despite holding vast reserves of these resources, African economies are heavily reliant on exporting raw materials, risking a new form of resource dependency termed 'green colonialism'. However, changes in global trade dynamics present opportunities for Africa to support green industrialization and value addition. The article highlights departures from WTO rules by the Global North, such as tax incentives for electric vehicles and carbon border adjustments. African countries are urged to seize this moment and invest in local processing to reap maximum economic benefits. Initiatives in the DRC, Zambia, and South Africa are already promoting battery manufacturing and mineral processing. Strong industrial policy interventions, like minimum beneficiation requirements, are essential for attracting investments in local processing and manufacturing, ensuring Africa's active participation in the global green transition.
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