A recent report by the African Development Bank has renewed calls for African countries to move beyond raw mineral exports and prioritise value addition as part of their energy transition strategies.
The report highlights that Africa holds a significant share of the world’s critical minerals—including cobalt, lithium, manganese, and graphite—yet captures only a fraction of the value generated across global supply chains. As demand for these minerals surges due to the expansion of clean energy technologies, the continent faces a narrowing window to reposition itself within higher-value segments such as processing, refining, and manufacturing.
According to the Bank, the current model—largely centred on extraction and export—limits job creation, industrial growth, and technological learning. Instead, it advocates for a coordinated approach that integrates mineral development with industrial policy, infrastructure investment, and regional trade frameworks such as the African Continental Free Trade Area.
The report also underscores the importance of building resilient and transparent governance systems to manage rising investor interest. With global actors—including China, the United States, and the European Union—intensifying their engagement in Africa’s mineral sector, the Bank warns that countries must strengthen their negotiation capacity to secure long-term national benefits.
A key recommendation is the development of regional value chains, particularly in battery manufacturing and green industrialisation. By leveraging pooled resources, shared infrastructure, and harmonised policies, African countries could collectively overcome scale constraints and compete more effectively in global markets.
The findings come at a time when energy transition discussions are increasingly shifting from access to resources toward control of value chains. For Africa, the challenge is no longer just about resource endowment, but about strategic positioning.
As policymakers, investors, and development partners respond to these insights, the report reinforces a central message: Africa’s role in the global energy transition will be defined not by what it extracts, but by what it builds.