Africa as a strategic partner in the energy transition

Introduction

As the race intensifies between global powers such as the US and China to secure Africa’s critical minerals, the stakes for the continent have never been higher. Minerals such as cobalt from the Democratic Republic of Congo, platinum from South Africa, and manganese from Mozambique are essential for technologies driving the energy transition, including electric vehicle batteries, hydrogen electrolyzers, and renewable energy systems. The International Energy Agency (IEA) estimates that Africa holds over 40% of global reserves for these minerals. Yet, this immense wealth comes with challenges and opportunities, depending on how partnerships with African nations are structured and executed.

Africa’s critical role in the energy transition

The clean energy technologies required to decarbonize global economies depend heavily on critical minerals. Batteries for electric vehicles and energy storage systems require large amounts of cobalt, lithium, and manganese, while hydrogen technologies and electrolyzers depend on platinum-group metals. Africa’s current share of global production for these minerals is significant, and undiscovered deposits in other regions of the continent could further expand its importance.

However, Africa’s role must not be limited to being a supplier of raw materials. Extractive industries, historically, have often left behind environmental degradation and social inequality. This time, the focus must shift toward ensuring that mineral wealth benefits African nations and communities while supporting the global transition to clean energy.

Leveraging minerals for sustainable development

The immense demand for Africa’s critical minerals provides an opportunity to foster local economic development and sustainable practices. With proper governance and partnerships, Africa can use its resources to drive its industrialization and economic diversification. Investments in mineral exploration and production must prioritize environmental and social standards, ensuring that mining operations benefit local communities and do not harm ecosystems.

Equitable partnerships should also focus on job creation and technology transfer. Establishing local refining and processing industries can create higher-value jobs within Africa, moving beyond the export of raw materials. This approach would enable African countries to capture a greater share of the value chain while reducing their dependence on external actors for economic growth.

Equitable partnerships: learning from the past

Africa’s history with resource extraction highlights the dangers of exploitative relationships. Many nations in the region have suffered from the so-called "resource curse," where mineral wealth has not translated into economic prosperity due to corruption, mismanagement, and unequal trade relationships. To avoid repeating history, partnerships between African nations and external stakeholders must prioritize transparency, fairness, and sustainability.

The EU, in particular, can position itself as a partner of choice by focusing on ethical and sustainable practices. Unlike China’s dominance in critical mineral processing and trade, which has raised concerns over labor and environmental standards, Europe can lead by example, fostering partnerships based on mutual benefit and shared goals. Bilateral agreements, like the EU-Morocco partnership on renewable energy and critical minerals, can serve as a template for broader cooperation across the continent.

A path forward: building resilient supply chains

To integrate Africa as a full partner in the energy transition, a multi-faceted approach is essential:

1. Investment in sustainable mining: International stakeholders must work with African governments to invest in mining infrastructure that meets high environmental and social standards. This includes measures to minimize land degradation and water use while addressing community concerns

2. Local processing and refining: Establishing processing facilities in Africa can add value to raw materials before they are exported. This move would create jobs, boost local economies, and reduce Africa’s dependency on exporting unprocessed minerals

3. Technology transfer: Collaboration on research and development can help African countries develop the technical expertise needed to innovate in critical mineral extraction and processing

4. Education and workforce development: Training programs and partnerships with local universities can build a skilled workforce capable of supporting industrial growth in the mining and clean energy sectors

5. Governance and transparency: African governments and their partners must ensure transparent governance of mineral resources, including fair distribution of revenues and adherence to international labor and environmental standards

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