Africa holds significant potential to be a major contributor to the global energy transition, thanks to its vast reserves of critical minerals like lithium and cobalt. However, harnessing this potential requires a strategic focus on building manufacturing capacity, expanding production, and boosting exports.
This perspective was highlighted during a panel discussion at the recent Manufacturing Indaba, where experts emphasized that resource extraction and industrialization present African nations with opportunities to move up the value chain, generate skilled employment, and drive technological advancement.
“We must explore ways to deepen value chains and leverage critical minerals for beneficiation, manufacturing, and value addition,” said Gaylor Montmasson-Clair, senior economist at Trade and Industrial Policy Strategies. He stressed the need for a diversified approach to make the most of these opportunities.
Thami Moatshe, executive head of the Localisation Support Fund, pointed out that Africa’s wealth in minerals offers a unique chance for industrialization and economic diversification, which would require investment in workforce upskilling to drive job creation.
Moatshe also emphasized the role of the African Continental Free Trade Area (AfCFTA) in fostering regional collaboration, positioning South Africa as a key hub for industrial growth.
“With emerging industries, Africa must seize the opportunity not just to export minerals but also to process them and manufacture components,” she noted.
Moatshe further highlighted the challenges posed by competition from low-cost imports and stressed the importance of government support to improve competitiveness.
Hilton Lazarus, head of the Industrial Development Corporation of South Africa’s basic and specialty chemicals unit, agreed, stating that extending Africa’s battery minerals value chain to include battery assembly would require substantial investment, regulatory support, and incentives.
Lazarus also emphasized that a stable and affordable electricity supply is essential to supporting industrialization efforts across the continent.
