Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), emphasized Africa’s pivotal role in supplying strategic minerals essential for clean energy technologies in a statement on April 13, 2025. He highlighted Africa’s wealth in critical minerals like cobalt, bauxite, manganese, and vanadium, noting that the Democratic Republic of Congo alone accounts for 70% of global cobalt production.
Adesina urged Africa to adopt policies similar to those of Indonesia, China, and Chile, which have successfully integrated into global value chains. For instance, Indonesia’s ban on raw nickel exports boosted domestic processing and downstream industries, while China’s policy coordination and infrastructure investments have secured its dominance in mineral refining.
He pointed out Nigeria’s potential to become a major player in solar panel production due to its mineral resources and low production costs. However, he stressed the need for a clear industrial policy on critical minerals to drive local manufacturing and enhance Africa’s competitiveness in the global energy transition.
Adesina outlined five priority areas: investing in energy infrastructure, developing critical minerals, clean energy-linked industrialization, establishing sound regulatory frameworks, and ensuring strong governance and community rights protection. He revealed that the AfDB, in collaboration with the African Union and the Economic Commission for Africa, is developing an African Green Minerals Strategy to guide these efforts.
Addressing the high cost of capital for African economies, Adesina criticized the “Africa risk premium,” which inflates investor costs. He cited a UNDP report estimating that correcting this misperception could save Africa $75 billion annually in debt financing. To tackle this, the African Union has approved the creation of the African Credit Rating Agency to provide objective credit risk assessments tailored to Africa’s economic realities.
Additionally, Adesina announced the Africa Financing Stability Mechanism, designed by the AfDB at the African Union’s request, to offer financial safety nets for African nations. Once operational, this mechanism aims to refinance $10 billion annually in debt service payments over the next decade.
Through these initiatives, Adesina reaffirmed the AfDB’s commitment to advancing Africa’s development by promoting industrialization, equitable investment opportunities, and financial stability