Africa's chance to move from resource supplier to industrial innovator

For decades, the direction of global industry has been set far from Africa. The continent is too often seen only as a supplier of the raw materials, cobalt, lithium, and manganese that power batteries, electric vehicles, and sustainable technologies developed and made elsewhere. Those resources rarely power Africa’s own industrial development. Instead, value-added manufacturing and its benefits flow elsewhere.

However, the industrial landscape is shifting. One fifth of countries in the southern hemisphere, including my home country of Brazil, as well as African countries like Morocco, now generate a higher share of electricity from solar and wind than our northern counterparts. 

At the same time, Africa holds some of the world’s largest reserves of critical minerals, alongside the youngest workforce on the planet. If the continent’s industrial sector grows, this could trigger a positive convergence: rapid industrial expansion powered not by coal and oil, but by sun, wind, and water.

Southern countries are ready for a different role: not just as suppliers, but as developers of sustainable industrial development. Instead of solely supplying needed raw materials to the rest of the world to support the global energy transition, these countries can build their own industries and infrastructure. This will create value-added jobs and drive innovation, while meeting urgent energy and mobility needs. 

Building the market: Electric transport

Electric mobility is one of the clearest examples of this possibility. Africa’s EV market is growing fast, although barriers remain to be tackled, like limited charging stations, uneven electricity distribution, and high upfront costs. Even so, multiple EV assembly plants are operating or planned in the region, building on existing automotive hubs that can be retooled.

Motorcycles show the growth potential. In 2010, sub-Saharan Africa had a fleet of 5 million motorcycles. By 2022, it had 27 million. For millions of Africans, they are the backbone of daily life. Electrifying this market could be practical and transformative. Electric two- and three-wheelers are more affordable than cars and could account for half of all sales by 2040. They also create employment beyond riders themselves, in assembly, repairs, sales, battery-swapping, and charging infrastructure. In countries grappling with youth unemployment, this is industrial policy and social policy rolled into one.

Rwanda is already showing what it looks like to tailor solutions to local contexts. Despite a weak national grid, the government has pledged to convert 100,000 motorcycles to electric. Local startups are experimenting with solar-powered charging, battery-swapping networks, and mini-grids that bypass the main electricity system.  The model proves that sustainable solutions can be built from the ground up.

Meanwhile, Spiro, a Nairobi-based electric mobility company, will open an assembly plant in Ogun State, Nigeria, next March. The plant will produce 100,000 electric bikes and localize battery and three-wheeler manufacturing.

These are good examples of important e-mobility developments in the region that could drive social, economic, and sustainable development.

Unleashing Africa’s sustainable growth

What governments choose to do next will also determine how fast this market takes off. Nigeria is offering a 10-year tax relief to local manufacturers in exchange for 30 percent domestic production of EVs by 2032. South Africa, home to one of Africa’s biggest automotive industries, has built electric mobility into its Just Energy Transition Investment Plan as a driver of future growth and employment. Other countries are fostering domestic demand through tariff cuts on EV imports.

While this is positive, regional markets remain fragmented, and policy signals could be more consistent. International financing is still scarce. As the world gathers in Addis Ababa for the Africa Climate Summit this week, we have a chance to remove some of these bottlenecks and scale what’s working.

If governments can support with the right regulatory environment, the private sector is ready to deliver. Businesses are breaking ground on new sustainable industries. Cities are designing mobility systems around renewable energy. Youth entrepreneurs are experimenting with new business models based on sustainable solutions. This is what a climate action agenda should look like. 

The opportunities are extensive, reaching low-carbon steel, sustainable agriculture, hydrogen-based solutions and more. If we align now, Africa can accelerate its development through a sustainability-driven strategy, becoming both a global solutions hub and a driver of shared prosperity. 

Dan Ioschpe is a COP30 Climate High-Level champion.