Transition minerals could be a huge boost to African GDP
The latest research from PWYP suggests that Africa could boost its GDP by at least $24 billion a year and create 2.3 million jobs through transition minerals.
African leaders need to come together and act urgently to ensure that the emerging transition minerals market brings prosperity to the continent, along with being well-regulated, transparent, just and equitable.
African leaders need to come together and act urgently to ensure that the emerging transition minerals market brings prosperity to the continent, along with being well-regulated, transparent, just and equitable.
How Africa can benefit from just transition minerals
PWYP's research on transition minerals in Africa
Africa is home to more than 40% of minerals vital to the production of renewable energy technologies. Demand for such materials is expected to rise exponentially as countries transition to low-carbon economies.
The economic modelling in our research finds that industrial policies could boost Africa’s transition mineral related exports by at least $32bn by 2028.
The economic modelling in our research finds that industrial policies could boost Africa’s transition mineral related exports by at least $32bn by 2028.
Our recommendations
Africa is an important supplier of transition minerals to the world. Yet the continent is stuck at a relatively low level in transition mineral value chains, where it processes some of its minerals but is largely absent from the manufacturing of many technologies linked to clean energy.
African leaders have the power to change the game. Discover how they could seize this key opportunity to support inclusive growth, create jobs and reduce poverty.
African leaders have the power to change the game. Discover how they could seize this key opportunity to support inclusive growth, create jobs and reduce poverty.
From Minerals to Energy?
How much of the value chain for renewables Africa can keep within the continent?
Our case study, based on our latest research, considers different renewable energy value chains, and identifies which stages African countries could competitively manufacture technologies.
Our case study, based on our latest research, considers different renewable energy value chains, and identifies which stages African countries could competitively manufacture technologies.
Further information
Here you can find more information about the research, including downloading the full economic modelling.
Our latest research
Our recommendations
Case study
Further information
Press release
Key stats
Cooperation amongst African mineral rich countries could significantly expand existing value chains on the continent. According to our research:
$24 billion
could be added to Africa's GDP
could be added to Africa's GDP
$32 billion
in annual exports for the entire continent
in annual exports for the entire continent
2.3 million
new jobs across Africa
new jobs across Africa
The vast majority of Africa's transition minerals are destined for manufacturing industries outside the continent. Only 2% of the continent’s exports of energy transition minerals are destined for other African countries. Africa is currently stuck at the bottom of energy transition value chains while most of the profits are made elsewhere in the world.
Though some countries in Africa do process transition minerals to some extent, the continent remains almost completely excluded from downstream and often more lucrative segments of value chains for these minerals, such as design, manufacturing, marketing and sales. This represents a major problem for the continent but African governments have the power to change the game.
Though some countries in Africa do process transition minerals to some extent, the continent remains almost completely excluded from downstream and often more lucrative segments of value chains for these minerals, such as design, manufacturing, marketing and sales. This represents a major problem for the continent but African governments have the power to change the game.
What people are saying about the research
"By transforming our raw materials locally, we can create sustainable industries, drive economic growth, and lead the global transition to a greener, more resilient future."
Dr Marit Kitaw, Interim Director at African Minerals Development Center
Dr Marit Kitaw, Interim Director at African Minerals Development Center
"There is a huge untapped opportunity for transition minerals not just to enable the clean energy transition globally but to create jobs and grow the sustainable economy in Africa."
Adam Anthony, Chair of PWYP Africa Steering Committee
Adam Anthony, Chair of PWYP Africa Steering Committee
"Africa's mineral resources must benefit all. We need benefit sharing, fiscal and economic policies, as well as sustainable mining practices that uphold human rights and guarantee environmental protection."
Stephanie Ngo Pouhe, Africa Research Assistant / Francophone Researcher Business & Human Rights Resource Centre
Stephanie Ngo Pouhe, Africa Research Assistant / Francophone Researcher Business & Human Rights Resource Centre
"Without beneficiation in Africa, the rest of the world will transition with our minerals, leaving the continent behind in darkness, poverty,
and strife. Beneficiation now!"
Isaac Danso Agyiri, Tax Justice Network Africa
and strife. Beneficiation now!"
Isaac Danso Agyiri, Tax Justice Network Africa
“The continental extraction, transformation and use of transition minerals may help reduce energy poverty in Africa; a crucial step towards an energy transition which leaves no one behind. However, this process has to be surrounded by strong safeguards, in terms of human rights and ESG standards. We have to refrain from promoting development at all costs, especially if it’s detrimental to communities.”
Dr Ketakandriana Rafitoson, Executive Director of PWYP
Dr Ketakandriana Rafitoson, Executive Director of PWYP
"All stakeholders in the continent need to work genuinely to implement policies promoting sustainable mining practices and ensuring that mineral wealth translates into economic and social development for African populations."
Eric Ngang, Senior Civil Society Adviser, Global Witness
Eric Ngang, Senior Civil Society Adviser, Global Witness