How Africa’s green opportunity could change it from resource exporter to industrial powerhouse – A greener life, a greener world

By Femi Akinrebiyo

Africa sits atop an enviable wealth of minerals crucial for the world’s clean energy transition. Copper, lithium, cobalt, manganese, rare earth metals and graphite – essential ingredients for electric vehicle (EV) batteries, renewable technologies and decarbonisation of industrial processes – are plentiful across the continent.

Meanwhile, Africa’s demographics offer an unmatched asset: a booming, youthful population poised to reshape the global workforce. The continent’s population is expected to reach 2.5 billion by 2050, up from 1.5 billion today, and its youth population, already the largest in the world, is forecast to double to over 830 million. By then, its working-age population (15-64 years old) will account for about a quarter of the world’s workforce.

Theoretically, the foundations are in place for Africa to leapfrog into a sustainable, industrialised future that provides more and better jobs. Yet the continent still exports vast quantities of raw materials while importing finished goods at a premium. That paradox must be reversed.

Africa needs to push beyond resource extraction

For Africa to capture more of the value from its natural endowment, governments and businesses must prioritise industrial policies and investments that push beyond resource extraction.

By developing domestic industries – particularly within the green technology and battery manufacturing value chains – African companies can position themselves as linchpins of the global clean energy economy.

The potential is immense, with the International Energy Agency (IEA) reporting that “global investment in EV batteries has surged eightfold since 2018 and fivefold for battery storage, rising to a total of $150 billion in 2023”.

In a 2022 analysis, McKinsey Battery Insights projected that “the entire lithium-ion battery chain, from mining through recycling, could grow by over 30% annually from 2022 to 2030, when it would reach a value of more than $400 billion”. Africa’s future role in this arena could reshape its economies and lift millions out of poverty.

Moving from extraction to industrialisation

At present, Africa’s position is that of a supplier feeding distant manufacturers in Asia, Europe and the Americas. Raw materials leave African ports and return as high-priced electronics, batteries and EVs.

But a few countries like Morocco and South Africa are charting a new course. Morocco, leveraging its proximity to Europe, has begun attracting green investments such as GOTION High-Tech’s $6.4 billion battery gigafactory. This project, expected to create 25,000 jobs, marks a shift toward Africa’s integration into advanced manufacturing.

To replicate such successes, African nations need targeted policies that foster local value addition and industrial capacity. For example, incentivising domestic processing plants for minerals like lithium and nickel would enable African firms to capture more of the value chain before exporting.

Zambia and the Democratic Republic of Congo (DRC), under a joint initiative, are exploring the creation of regional battery production hubs, an idea that could gain traction with strategic financing and partnerships.

Investment and infrastructure are key to scaling

Industrial ambitions, however, rest on the bedrock of infrastructure. Africa’s infrastructure deficit — power grids, reliable transport networks and ports —remains a stumbling block. 

Without reliable electricity, industrialisation sputters. Nearly half of the continent’s population lacks access to electricity, and those who do have access often contend with outages.

Yet renewable energy offers a transformative solution. Hydropower in the DRC and Zambia already forms the backbone of their modest energy supply. Projects like the long-delayed Grand Inga Hydropower Dam on the Congo River, if revived, could unleash 40GW of electricity — enough to power large-scale industrial growth across the region.

Smaller, decentralised renewable energy systems also hold promise. Solar, wind and energy storage technologies are becoming cheaper and more viable, particularly for rural areas.

One standout initiative is the metro-grid model developed by Nuru. With the support of the International Finance Corporation, the project aims to provide electricity to 5 million people, making it the largest mini-grid system in Sub-Saharan Africa. By implementing the metro-grid model, the initiative strives to deliver reliable energy to urban communities across the country.

For African nations to attract global manufacturers, they must ensure a reliable, clean energy supply while improving logistical efficiency.

A greener, more inclusive future for Africa

As the clean energy revolution unfolds, Africa has a rare opportunity to industrialize in a way that avoids the environmental pitfalls of earlier economic transformations. 

By prioritizing renewable energy, sustainable mining practices and energy-efficient technologies, African nations can build industries that are cleaner, more competitive and socially inclusive.

Investments should focus on marginalised communities, women, youth and rural areas, ensuring equitable access to jobs and opportunities. Africa’s vast resources, youthful population, and renewable energy capacity are assets that can build a stronger and more vibrant Africa.

Investments in mining must go hand-in-hand with sustainable infrastructure, ensuring appropriate sustainable infrastructures to support the industry’s need, such as clean energy and responsible water supply. These efforts also hold great promise for positively impacting the region and the communities.

Responsible and sustainable mining can drive long-term economic growth in host countries through increased exports and job creation. By capturing more of the clean energy value chain in a sustainable manner, the continent can lift living standards, reduce inequality, and chart a path toward economic self-sufficiency. The moment is ripe for Africa to seize its role as a vital player in the global clean energy revolution.

Femi Akinrebiyo is the Global Manager of Manufacturing Investment & Trade Supplier Finance at the International Finance Corporation.

First published at The World Economic Forum.