Unlocking Africa’s key mineral resources: the energy transition can pave the way to new prosperity

As part of its 60th anniversary celebrations, the United Nations Trade and Development Authority (UNCTAD) will host a pre-registration event on June 4 in Addis Ababa, Ethiopia, and online.

The event, titled ‘Maximizing Africa’s Potential: Harnessing Demand for Critical Minerals to Drive Inclusive Economic Growth and Sustainable Development’, will explore ways to optimize the development benefits of Africa’s vast deposits of minerals key to the global energy transition, such as cobalt, copper and lithium.

UN Secretary-General for Trade and Development Rebecca Grynspan, Deputy Chair of the African Union Commission Monique Nsanzabaganwa and UN Economic Commission for Africa Deputy Executive Secretary Antonio Pedro will be joined by leaders, diplomats, experts and key stakeholders.

Charting a new path forward

The 60th anniversary of the UN Trade and Development Committee is a landmark moment and an opportunity to reflect on the lessons learned over the past six decades and chart a new path forward, building a resilient, just and sustainable future.

Ms Grynspan reaffirmed that UN Trade and Development Africa’s commitment remains unwavering as the organization moves into the future, and reiterated her belief in the transformative power of Africa’s key mineral resources, which offer limitless opportunities to catalyze sustainable development on the continent.

Through strategic partnerships and innovative solutions, the United Nations Trade and Development Organization stands ready to support efforts to realize the full potential of Africa’s abundant resources and shape a future in which the continent stands out on the international stage as a beacon of opportunity and hope.

A critical step towards a new course of development

The event in Addis Ababa is part of key steps towards a new development course for Africa that will bring the continent’s rich mineral resources to the benefit of its people.

Africa is home to significant resources of the world’s most important energy minerals: 55% cobalt, 47.65% manganese, 21.6% natural graphite, 5.9% copper, 5.6% nickel, 1% lithium and 0, 6% of iron ore worldwide.

These minerals provide the opportunity to generate revenue for governments, finance development, overcome resource dependence, create jobs and raise living standards across Africa.

However, the continent has yet to fully exploit the opportunities offered by its natural resources. Estimates show that African countries generate only about 40% of the revenue they could potentially receive from these resources.

Given the current global crises, limited fiscal space, slow growth and high debt, African countries need to maximize the financial and development benefits of these resources, especially minerals critical to the energy transition.

Opportunities and challenges

The event will analyze opportunities and challenges in the African critical minerals sector. Key areas of discussion will include how to improve revenue mobilization and fiscal administration, as well as promoting value addition and regional value chain integration on the continent.

Participants will also explore how to increase investment in infrastructure, skills and innovation to support mineral-based industrialization on the continent, while promoting climate action.