Clean energy technologies drive demand for green metals in Africa
The transition to clean energy technologies continues to drive demand for green metals. Despite prevailing challenges, Africa stands to play a crucial role in the clean energy transition. Presently, the continent primarily extracts green metals and exports raw minerals. With China serving as a major global consumer of green metals, there are some risks in Africa serving a single market.
To make it less vulnerable to such risks, the continent could use beneficiation and localisation to diversify its export offering. Leveraging the African Continental Free Trade Area and its abundant mineral reserves, Africa can strengthen its position within green technology value chains, which in turn will promote economic prosperity.
South Africa is well positioned to harness both investment and trade opportunities from the transition to clean energy. With its industrialised economy and significant beneficiation experience and expertise, the country stands to benefit from manufacturing activities that could further advance import substitution industrialisation in the green transition space.
The Export Credit Insurance Corporation, with its robust footprint on the continent, aims to promote intra-Africa economic relations and can support local players as they take advantage of this burgeoning opportunity. South Africa can respond to the growing demand for environmentally friendly products by increasing investments in green metals and deepening trade relations as countries strive to meet their carbon emission targets.
