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Africa Positioned as Future Hub for Energy Transition

Energy and Utility

Akinwumi Adesina, Morocco, Energy Transition

Business Honor
06 December, 2024

Africa is becoming a prime investment destination for the global energy transition, driven by its mineral wealth.

Africa has become an attractive destination for investment in the transition of global energy, said Akinwumi Adesina, President of the African Development Bank (AfDB). Speaking at the opening of the Africa Investment Forum (AIF) Market Days in Rabat, Morocco, Adesina emphasized Africa's critical role in driving the green transition. With vast deposits of key minerals crucial for energy transition, such as cobalt, lithium, and manganese, Africa is positioning itself as a hub for global energy and green technology.

The AIF held on December 4 brought together more than 1,770 investors from over 200 institutions for the discussion and advancement of investment opportunities across Africa. This year's theme is "Leveraging Innovative Partnerships for Scale," with an aim to mobilize large-scale investments in sectors like renewable energy, mining, and infrastructure for the development of the continent.

Adesina highlighted that Africa’s mineral wealth—containing 95% of the world’s chromium, 90% of platinum group metals, and significant shares of lithium and cobalt—presents a unique opportunity for investors. These minerals are integral to the production of electric vehicles (EVs) and energy storage systems, with the market for these sectors projected to rise from $7 trillion in 2030 to $59 trillion by 2050.

The AfDB President asked investors to look at Africa not as a risky market but as a stable and promising investment destination. From its inception, the Africa Investment Forum has mobilized $180 billion in investments for Africa and facilitated projects worth $30 billion. For example, Rwanda was able to mobilize $300 million for Kigali Innovation City, which is one of the green infrastructure projects. Africa is certainly the global green energy hub in the future, and more international cooperation is still sought.