A critical component of the transition to net-zero carbon emissions is the replacement of fossil fuels for renewable energies and green technologies. This will require a vast amount of minerals and metals. For instance, wind turbines and energy storage technologies require mineral and metal-intensive inputs. Just to produce solar panels, at least 16 different types of minerals or metals are required.
It is widely known that Africa has an abundant untapped potential of critical minerals needed for the deployment of green technologies. Furthermore, the continent possesses a huge renewable energy potential, relevant suitable land for energy development, solar energy, wind power, biomass and hydroelectricity. The continent hosts 30% of the global green mineral reserves. It is home to significant reserves of cobalt, manganese, natural graphite, copper, nickel, lithium, and iron.
By 2040, it is projected that renewable energy sources will supply more than 40% of the incremental primary energy demand. High demand for these clean minerals and metal positions the continent to not only be a key player in the global energy transition but also to advance its position in the global value chains.
Europe, on the other hand, disposes only of a limited stock of these critical mineral resources fundamental to the rapid transition of all aspects of the economy, including energy systems. Hence, Africa is an important partner in espousing the EU's strategy to reduce dependence on single third-country suppliers of critical material. However, in order to create economic growth and job opportunities in Africa, the partnership between Africa and Europe can’t be limited to the extraction and export of raw materials but should address economic transformation on the continent as well.
Benefits of the extractive activities are beyond revenues from the sector. Countries stand to also benefit from the economic externalities of the sector. Two examples of potential spillover effects of extractive industries are the creation of economic corridors such as in Simandou Mountain Area in Guinea and via the Lobito Corridor in Angola, DRC and Zambia.
