Based on a recent report from the United Nations Conference on Trade and Development (UNCTAD), Africa has the ability to position itself as the major supplier of international raw materials. These raw materials will be used for international supply chains, mostly in high-tech industries like devices, renewable energy, motor industry, and health sector especially due to challenges being faced in the global economic climate.
According to the report, African countries must make the best use of their resources, boost their technological development and leverage their trade accord. By doing these, the continent would be able to become a commercial center for global chain supply, mainly in the tech sector. This will boost international green transformation.
It is worth noting that these adoptions can only be possible by implementations from the leaders of the nations and businesses in establishing laws and policies that will create an enabling environment. Between 2021 and 2022 alone, the continent’s supply chain finance went up by 40% to about 41 billion dollars.
One major advantage Africa has is a reserve of about one-fifth of the required major elements the world needs for energy transformation, which can enhance its ability to assume the position. Other advantages as pointed out by UNCTAD are the challenges faced in the international supply chain such as the Russia-Ukraine war and COVID-19 disruptions. These disruptions have adverse effects on the economies of the Western World and other nations outside Africa.
These issues are further heightened by multipolarism and geopolitical pressure. Hence, international manufacturers are looking at branching out to other locations for their operations, thus positioning Africa as their preferred choice. The report also mentioned that Africa has 30% of the world’s mineral resources which are very much needed in the transition of energy to green energy.
This fact alone gives the continent’s leaders a clear opportunity to develop Africa primarily due to the ever-growing demand for these resources. In fact, the Word Bank foresees demand for Lithium rising in triples within the next 17 years.
Already there was a surge in demand for this mineral between 2020 and last year as the price went from 6,000 dollars per tonne to over 78,000 per tonne which signifies a wealth generation opportunity from Lithium reserves.