By Africa Links 24
Published on 2024-01-17 11:28:40
Many experts and analysts believe that the mineral resources in Africa could be utilized to drive industrialization on the continent. Instead of simply exporting raw materials, African leaders are now showing strong determination to pursue industrialization led by commodities. Achieving this goal will require a united approach, substantial private investment, and clear and consistent national, regional, and continental policies. These were some of the views expressed in a panel discussion on the sidelines of the 2024 World Economic Forum in Davos, Switzerland.
The panel, moderated by Omar Ben Yedder, brought together Denys Denya, executive vice president at African Export-Import Bank (Afreximbank); Sanjeev Gupta, director of finance at Africa Finance Corporation; and Eugene Mayne, CEO of the Tristar Group, an energy logistics business serving the downstream oil and gas industry.
Denya opened the panel by highlighting success stories in value-addition on the continent, such as Afreximbank’s Africa Cocoa Initiative which aims to increase cocoa processing in Côte D’Ivoire, Ghana, and Cameroon. He emphasized the need to industrialize, produce, and earn more from the continent’s resources. Mayne noted that Africa’s economic fortunes are heavily reliant on its vast resources and that the continent must grow rapidly to keep up.
The African Union’s Agenda 2063 and its importance in promoting commodity-led industrialization were discussed. Gupta and Mayne highlighted a collaborative strategy for the emergence of an African electric vehicle sector by adding value to products systematically and supported by investor-friendly policies.
Mayne cautioned against overambitious goals for Africa in the electric vehicle industry and suggested a step-by-step approach. He also recommended a collaborative strategy to support the emerging African electric vehicle sector. Strong consensus and early-stage funding for project development were described as crucial for successful cross-border projects. Gupta emphasized the need for a sustainable ecosystem to add value to African minerals using renewable energy, thus creating jobs and reducing shipping of goods.
Denya highlighted the importance of policy consistency and urged governments to address policy issues promptly. Gradual steps towards success, such as producing intermediate products before chocolate, were cited as a surer path to success by Denya. The panel discussed the infrastructure and logistical challenges that must be resolved to facilitate mass use of electric vehicles on the continent.
Ultimately, the panel emphasized the need for a collaborative approach, progressive goals, and well-defined policies to harness Africa’s mineral resources for industrialization.
