Africa Must Move Beyond Mining: IEA Urges Building Local Value Chains in Energy Tech

A new international report highlights a critical shift Africa must make: not simply exporting raw minerals, but moving decisively into processing, manufacturing, and technology in energy supply chains. Currently, Africa contributes less than 5 % of the total value generated from producing energy technologies, even though the continent possesses abundant critical minerals and an expanding demand for clean energy solutions.

The analysis reveals that only a few African facilities currently process or manufacture components for energy technologies, with most minerals still exported in raw form. To change this, African nations must invest in mineral beneficiation, material production, and technology manufacturing—especially in renewables, batteries, and grid infrastructure. Some countries are already developing frameworks for sustainable industrialization that can serve as models for the rest of the continent.

For investors and local businesses, this represents a powerful opportunity. Rather than competing purely in extraction, the higher value lies in downstream processing and local manufacturing—building plants for battery components, solar panels, power electronics, or refining materials locally. Governments and development partners are increasingly channeling financing, tax incentives, and grants toward such “value-adding” infrastructure.

Investors who align with national industrial strategies, adopt ESG principles, and invest in workforce development can gain both profitability and long-term stability. The continent’s next growth chapter will be written not in raw exports, but in the ability to turn resources into finished products that power the global clean-energy transition.

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