For Africa to become a key global player in just energy transition, it needs to add value to its endowed critical minerals, transparent and fair-trade practices on global markets, officials have said.
ALSO READ: Africa’s critical minerals summit to profile continent's investment outlook
Sub-Saharan Africa is estimated to hold 30 percent of the world’s critical mineral reserves including deposits of lithium, cobalt, and copper, which are crucial for the fourth industrial revolution, presenting massive opportunities for global partnership and investment.
The demand for these minerals, especially lithium, have driven the global battery arms race, due to the advent of electric vehicles.
During an African Consultative Webinar on Critical Energy Transition Minerals and the UN Global Framework on Just Energy Transitions, on August 14, Antonio Pedro, the Deputy Executive Secretary of the United Nations Economic Commission for Africa (ECA), said that Africa needs to create a competitive mineral resources development environment.
This, according to him would allow Africa to ride the crest of mineral prices because technological developments, including those that create substitutes, are developing fast.
"Among other strategies to enhance the domestic footprint of the Critical Energy Transition Minerals (CETMs) sector, African countries need to curb the export of unfinished mineral products through value addition and beneficiation to reap rewards at the higher end of the mineral value chains,” said Pedro.
ALSO READ: Govt moves to incentivise value addition to minerals
He commended the progress made by African countries to improve governance, but said challenges remain in many other areas such as taxation, value addition, and the strengthening of linkages, while the exploitation of minerals poses multifaceted environmental, social, and geopolitical challenges.
"The abundance of cobalt, manganese, lithium, nickel, copper, graphite, and other minerals positions Africa as a key player in shaping the future of clean energy supply and, with it, global sustainable development.”
"But a just and fair exploitation will generate sustainable jobs, diversify economies, and dramatically boost revenues which, can support development and transformation,” Pedro added.
Angela Kariuki, the Legal Officer at Law Division United Nations Environment Programme (UNEP), discussed the UN’s efforts to support countries in transitioning to critical energy minerals through a just transition framework which aims to minimize environmental and social risked while harnessing the economic potentials of these resources.
"Key principles of the framework include assessing and managing nature and social-related risks, protecting local communities and promoting circularity in value chains,” she said while emphasizing on the importance of protecting people and the planets through these efforts.
Clovis Freire, the Economic Affairs Officer at the Division on Technology and Logistics of the United Nations Conference on Trade and Development (UNCTAD), stressed that trust is crucial for a successful energy transition and there is need for communication and collaboration among stakeholders.
In his presentation on the regional context of the UN's work in the extractive industries sector, John Sloan, the Economic Affairs Officer at ECA, emphasized the potential of mineral based development for economic transformation in Africa, highlighting the region’s vast mineral endowments, the need for value addition and job creation in mining industry.
According to him, the private sector, governments, and civil societies, should revisit incentives for job creation in sectors like manufacturing and address need for global policy stability given rapid technology changes.
"There is need to focus on mineral-based development in Africa focusing on value addition and economic transformation,” said Sloan.
Officials also noted that artisanal and small-scale mining in Africa provides vital livelihoods for millions, particularly women and youth, however, challenges persist including lack of transparency and accountability in chains leading to unequal benefit sharing and negative impacts on vulnerable groups.
Launched in April, the UN Secretary General’s panel on critical minerals consists of the major critical energy transition minerals producing and consuming countries, as well as regional and international institutions active in the energy transition space, trade associations for mineral producers globally, civil societies.