Africa's Mineral Wealth Hindered by Financing Gaps in Energy Transition
A new report by the World Economic Forum (WEF) and partners highlights the financing gaps hindering Sub-Saharan Africa's role in the global energy transition. Despite holding around 30% of the world's known reserves of critical minerals, the region receives less than 10% of global exploration spending.
The report, focusing on ten countries, identifies eight key financing obstacles. These include policy uncertainty, access to energy, transportation barriers, innovation lag, industrialisation pace, skill gaps, and demand volatility. If these challenges persist, Africa may miss the opportunity to convert its mineral wealth into structural socio-economic transformation.
WEF's Jörgen Sandström stressed that Southern Africa has the mineral reserves needed for the global energy transition, but finance flows are not keeping pace. The African Development Bank (AfDB) is supporting financing critical minerals in South Africa, aiming to mobilize $4 billion through its Climate Action Window by 2025. This will promote climate-smart investments in energy access and value addition for critical minerals, in collaboration with organizations like the Pan African Climate Justice Alliance.
Zambia's mining policy reform is enhancing copper production, targeting a tripling of output to three million tonnes by 2031. The report presents case studies, such as the Lobito Corridor project and Namibia's green iron production facility, demonstrating successful strategies to overcome financing barriers.
The report underscores the urgent need for Africa to actively participate in shaping its development path during major transitions. By addressing these financing obstacles, Africa can harness its critical mineral wealth to drive clean energy and low-carbon technologies, ultimately fostering socio-economic transformation.
Read also:
- ILO Wins Aus4Skills Program to Boost Vietnam's VET Quality Assurance
- U.S. Vice President JD Vance discusses the proposed Bitcoin reserve
- Pablo Escobar's Former Estate 'Hacienda Nápoles' to Be Transformed by Women's Organization
- HELL ENERGY DRINK Celebrates India Success with Michele Morrone Grand Finale
