AfDB highlights Africa’s critical minerals potential

Africa is poised to play a leading role in energy transition as it continues to attract prime investors thanks to its large deposits of critical minerals, African Development Bank chief Akinwumi Adesina said.

Speaking at the opening of the African Investment Forum in Rabat, Adesina said Africa holds 95% of chromium, 90% of Platinum Group Metals, 2/3 of global reserves of cobalt, 30% of lithium and manganese, and 20% of graphite—all of which are key for green transition, from electric vehicles to battery energy storage systems.

“The size of the electric vehicle and battery energy storage systems will rise from $7 trillion in 2030 to $59 trillion by 2050,” he said, noting that Africa, which currently serves as a supplier of raw minerals, has a unique opportunity to move up the critical minerals value chain, with investments in critical minerals value adding industries.

The development of lithium-ion precursor battery plant in Democratic Republic of Congo will be 3 times less expensive than in the United States of America, China or Poland, he said, citing a Bloomberg report.

Underscoring the investment opportunities in the continent, Adesina noted that Africa has the lowest default rates in the World.

“Default rates were 1.9% for Africa; 6.6% for North America; 10.1% for Latin America; 12.4% for Eastern Europe; 4.6% for Western Europe and Asia, respectively,” he said.

The Africa Investment Forum goal is to help investors take informed investment decisions on projects in Africa, he said.

In the past 5 editions, the AIF has mobilized $180 billion of investor interests to Africa, Adesina said.

It has fully closed transactions worth $30 billion and continues to fast-track a lot more to financial closure, he added.