- Afreximbank to promote an inclusive battery and electric vehicle value chain on the continent for clean energy transition.
- The value addition of critical minerals and electric vehicle demand represents a $7 trillion market up to 2030 and $46 trillion by 2050.
The Economic Commission for Africa (ECA) has urged African leaders to fully exploit the abundant critical mineral resources on the continent to accelerate sustainable industrialisation and clean energy transition. The acting Executive Secretary of the United Nations (UNECA), Antonio Pedro, said this while speaking with leaders at a business summit on the sidelines of the United National General Assembly (UNGA) in New York. This was contained in a statement on the commission’s website.
During a panel discussion on “Extractives, Batteries, Electric Cars: Powering Tomorrow, Today”, Pedro said Africa should benefit from its critical mineral resources through fair value creation. According to him, this would ensure Africa’s resources promote resource-driven industrialisation, create jobs, and enable countries to go up the value chain.
The executive secretary said the continent had been unable to achieve energy transition despite its endowment with an array of minerals from copper, magnesium, nickel and cobalt. Pedro said enabling policies and incentives were crucial in boosting investment in the value addition of critical minerals. He added that the value addition of critical minerals and the boom in electric vehicle demand currently represented a seven trillion dollar market up to 2030 and $ 46 trillion by 2050.
He said, “The DRC produces over 70 per cent of the world’s cobalt. Together with Zambia, it also supplies 10 per cent of global copper. Moving the DRC one step up on the electric battery value chain can increase the $11 billion in mining proceeds to $270 billion.”
On her part, Ms Oluranti Doherty, Director of Export Development at Afreximbank, said that African countries needed to take ownership and leadership in developing their mineral resources. She reiterated Afreximbank’s commitment to promoting an inclusive battery and electric vehicle value chain on the continent. She said the bank was promoting industrialisation on the continent and was facilitating the development of Special Economic Zones in Zambia and the DRC.
“Following the signing of the framework agreement between the DRC, Zambia, ECA and Afreximbank for financial and technical assistance. We have put together one million dollars to support the preparation of the pre-feasibility study for the creation of special economic zones in these countries,” Doherty said.