Green technology startups are pioneering Africa’s shift toward electric mobility, crucial for addressing climate change by promoting the adoption of electric vehicles (EVs). While Africa’s progress lags behind regions such as Europe, the US, and China, African nations are proactively establishing policies to encourage this transformation.
The European Union’s mid-July proposal to end diesel and petrol car sales by 2035 marks a significant market shift and presents opportunities for Africa, a continent with potential in sectors such as the electric two- and three-wheeler market, promising green jobs and sustainable energy solutions.
At a dialogue during COP28, it was acknowledged that Africa’s wealth of minerals and renewable energy positions it as a strategic player in the global critical minerals market and the quest for net-zero emissions. Africa’s move to refine minerals and manufacture battery components and vehicles in-house could generate values ranging from $11 billion to over $7 trillion. Samaila Zubairu, President and CEO of AFC, underscored the importance of keeping this value within Africa rather than exporting raw materials.
Investments in data collection, partnerships, and elevated ESG standards are needed to realize Africa’s full potential in this sector. Both African and international funding are deemed vital for these advancements.
The battery and electric vehicle sector represents a significant opportunity for Africa, with projections valuing the market at up to $46 trillion by 2050. The DRC and Zambia’s commitment to a special economic zone for batteries and electric vehicles is a step toward capturing this market.
Bridgette Motsepe, Chair of Mmakau Mining and Ambassador of Economic Development for the Pan-African Parliament, has called for structural reforms to enable local ownership in the mining sector. Similarly, Frannie Leautier of SouthBridge Investment has proposed financing strategies that capitalize on Africa’s mineral resources to attract local and philanthropic investments.
The continent has an abundant mineral wealth, and with deliberate collaboration and investment in value addition, African countries can unlock significant value in the mining sector. However, it is crucial to assess this wealth accurately and to establish value chains with due consideration to evolving technology and the search for alternative materials. Collaboration with partners and African Centres of Excellence is essential to maintaining the DRC’s position in this sector. With a collective will to engage in collaborative efforts, Africa’s rise in the EV sector is within reach.
