Africa faces hurdles to clean tech drive - GulfToday

Africa faces hurdles to clean tech drive

African countries need a sophisticated transportation system for their mining sectors that also conforms with clearn energy goals.

African countries need a sophisticated transportation system for their mining sectors that also conforms with clearn energy goals.


From Zimbabwe’s lithium-rich rocks to Democratic Republic of Congo’s cobalt, minerals critical for clean energy technologies are increasingly in demand from Africa’s trade partners as part of the global green transition from planet-warming fossil fuels. Yet on a continent long blighted by the so-called “resource curse” – whereby nations rich in oil or gold, for example, have failed to convert this into wider prosperity – governments have increasingly restricted or banned mineral exports in recent years in a bid to boost processing and retain more of the gains. This strategy could backfire, however, by deterring foreign investment, several analysts said.

The European Union (EU), meanwhile, has voiced concern about growing export restrictions in Africa on critical minerals used in renewable and low-carbon technologies – from batteries for electric vehicles (EVs) to wind turbines.

More than a dozen African nations – including Democratic Republic of Congo (DRC), Nigeria and Namibia – have restricted such exports intermittently or banned them outright, according to research published in May by the Africa Development Forum, says Reuters.

Former Nigerian mines and steel development minister Olamilekan Adegbite, who spearheaded a raw-ore export ban in the country in 2022, said African nations were calling for an end to the “plundering (of) the continent for raw materials”.

Despite being a major crude oil producer, Nigeria is heavily dependent on imports from overseas refineries. As demand grows for such minerals for the energy transition, so are calls for export controls or bans in Africa– with the aim of moving beyond just mining and bringing more of the supply chain – and ensuing value and profits – within the continent. Between 2017 and 2022, the energy sector was the main driver behind a tripling of demand for lithium, while demand for cobalt grew by 70% and nickel rose by 40%, according to a report released in July by the International Energy Agency (IEA).

Many mineral-rich African nations are known for experiencing a “resource curse”, with bad governance linked to “corruption, environmental degradation, (and) human rights abuses”, said Silas Olang, NRGI’s Africa energy transition adviser. But there is now a chance to buck the trend on the continent as the world “turns an eye on Africa’s minerals”, Olang added.

Africa has 30% of the world’s mineral reserves, many of which are needed for the green transition, including cobalt in DRC, manganese in South Africa and lithium in Zimbabwe, the South African Institute of International Affairs (SAIIA) said. Minerals like cobalt, lithium and manganese are vital for battery performance, copper is integral for all electricity-related tech, while rare earth elements such as neodymium are used in permanent magnets that power EV motors and turbines. DRC has banned exports of copper and cobalt concentrate intermittently since 2013 to encourage domestic processing, but it has issued regular waivers to the ban, the Reuters report adds. For export bans to really benefit African nations, however, governments would have to shift processing power - and ownership of it - locally, and make use of their renewable energy capacity to power it too, according to the NRGI analysts. The African Union and other regional bodies are developing an African Green Minerals Strategy, which aims to improve mining regulation and institutions, and build a more attractive investment environment, among other objectives. Resource export bans by African nations have sparked concern in the EU as it seeks alternative mineral trade partners to China and Russia, in the race to become climate-neutral by 2050. In June, the Namibian government banned the export of unprocessed lithium and other minerals, about eight months after signing a memorandum of understanding with the EU to develop its supplies of rare earth minerals, as well as renewable hydrogen.

The EU intends to follow developments closely and to have “constructive dialogue” on finalising the EU-Namibia partnership on sustainable raw materials, the commission spokesperson said.

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