SUB-SAHARAN Africa is poised to harness substantial revenue, estimated at nearly $2 trillion, from the production of metals crucial for the global energy transition by 2050, reveals a report by the IMF.
The IMF’s analysis, released on Friday, underscores the immense economic potential of the region in meeting the surging demand for minerals essential for electric vehicles (EVs) and renewable energy infrastructure. According to the report, global revenue from mining copper, cobalt, lithium, and nickel could soar to $16 trillion over the next 25 years, with sub-Saharan Africa contributing approximately 12 percent to this total.
Highlighting existing production hubs, the report emphasises the Democratic Republic of Congo’s dominance in cobalt production, accounting for over 75 percent of the world’s supply, and its significant role as the second-largest copper producer globally. Furthermore, countries such as Zimbabwe, Ghana, and Mali are poised to emerge as key players in lithium production, aligning with the region’s strategic positioning in the energy metals market.
‘The boom bodes well for sub-Saharan Africa,’ remarked the IMF, emphasising the region’s potential to capitalise on the growing demand. However, the report also cautioned against complacency, citing the rapid evolution of technological advancements, particularly in EV batteries, which could render certain minerals obsolete.
While sub-Saharan Africa stands to gain substantially from the energy transition, the IMF underscores the importance of strategic investments in domestic processing capacity to maximise returns and enhance value addition within the region’s mining sector.
In contrast, the report notes a decline in revenue from fossil fuel sales in sub-Saharan Africa, projected at $625bn over the same period, reflecting a global shift towards renewable energy sources and heightened environmental concerns driving the transition away from traditional fossil fuels.
As the energy landscape evolves, sub-Saharan Africa finds itself at the nexus of opportunity, poised to leverage its rich mineral resources to drive economic growth and sustainable development in the era of renewable energy and electric mobility.