FOSTERING INDUSTRIAL HUBS FOR ENERGY TRANSITION TECHNOLOGIES IN AFRICA

The report argues that Africa has a significant opportunity to transition from a 'pit-to-port' resource extraction model to a green industrialization strategy focused on solar PV, batteries, and electric vehicles. It highlights that while Africa holds approximately 30% of the world's essential transition mineral reserves, it lacks investment in manufacturing, with most clean-tech imports originating from G20 countries, particularly China. The document proposes a G20 Action Plan involving a financing roadmap, a dedicated partnerships platform, and reforms to international trade and technology access norms to enable African countries to build competitive local value chains and create millions of green jobs.

• Africa faces a high dependency on imports for finished energy-transition technologies, with over USD 12 billion imported between 2022 and 2024 in solar PV modules, lithium-ion batteries, and assembled electric vehicles.
• There is a substantial market opportunity for local solar PV production in Africa, estimated at USD 27 billion between 2025 and 2030, including modules and balance of system components.
• The solar PV value chain in Africa has the potential to create over 146,000 annual jobs in the manufacturing sector alone between 2024 and 2050.
• Africa possesses approximately 30% of the global reserves of minerals essential for the green transition, such as cobalt, lithium, and nickel.
• Local beneficiation of minerals can significantly increase export value, as demonstrated by the Democratic Republic of the Congo, which increased the unit price of cobalt from USD 5.8 per kilogram at extraction to USD 16.2 per kilogram after processing.
• Investment in clean-technology manufacturing in Africa remains negligible compared to G20 nations; in 2023, China alone accounted for nearly three-quarters of the USD 235 billion in global investments.
• The report identifies a critical need for a 'whole-of-government' industrial policy approach, combining demand-side incentives (like public procurement) and supply-side measures (such as fiscal incentives and R&D) to build local capabilities.
• Intra-African trade in intermediate goods has declined from 32% in 2015 to around 24% in 2023, suggesting that semi-processed exports are being absorbed by external markets rather than regional supply chains.
• Special Economic Zones (SEZs) are a key tool for attracting investment, with over 220 SEZs in Africa having mobilized more than USD 2.6 trillion in investment.
• The report proposes a G20 Action Plan that includes establishing a 'Partnerships for Green Industrialization in Africa Platform' and a roadmap for concessional and blended financing to support green industrialization.

APA

Nagpal, D., Allan, D., & Tereshchenko, P. (n.d.). FOSTERING INDUSTRIAL HUBS FOR ENERGY TRANSITION TECHNOLOGIES IN AFRICA. Sustainable Energy for All. https://www.seforall.org/system/files/2025-10/SEforALL-Fostering_Industrial_Hubs_for_Energy_Transition_Technologies_in_Africa.pdf

Chicago

Nagpal, Divyam, Darryn Allan, and Pavel Tereshchenko. FOSTERING INDUSTRIAL HUBS FOR ENERGY TRANSITION TECHNOLOGIES IN AFRICA. Sustainable Energy for All, n.d. https://www.seforall.org/system/files/2025-10/SEforALL-Fostering_Industrial_Hubs_for_Energy_Transition_Technologies_in_Africa.pdf.

Wikipedia

{{cite report |last1=Nagpal |first1=Divyam |last2=Allan |first2=Darryn |last3=Tereshchenko |first3=Pavel |title=FOSTERING INDUSTRIAL HUBS FOR ENERGY TRANSITION TECHNOLOGIES IN AFRICA |publisher=Sustainable Energy for All |url=https://www.seforall.org/system/files/2025-10/SEforALL-Fostering_Industrial_Hubs_for_Energy_Transition_Technologies_in_Africa.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nagpalndfostering, author = {Nagpal, Divyam and Allan, Darryn and Tereshchenko, Pavel}, title = {{FOSTERING INDUSTRIAL HUBS FOR ENERGY TRANSITION TECHNOLOGIES IN AFRICA}}, institution = {Sustainable Energy for All}, url = {https://www.seforall.org/system/files/2025-10/SEforALL-Fostering_Industrial_Hubs_for_Energy_Transition_Technologies_in_Africa.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }