Africa’s $9 trillion lithium bonanza: Can Africa turn its mineral wealth into a global economic powerhouse?

Africa's vast lithium deposits could transform the continent's economy if African countries take control of the entire value chain and stop exporting raw minerals, says a recent conference in Accra. Organized by the Africa Centre for Energy Policy, the Summer School on Managing Africa's Extractive Future in the Energy Green Transition brought together experts from 15 African countries to discuss how the continent can maximise its mineral wealth amid the global shift to clean energy.

Nkuli Ncobe of Zimbabwe, speaking at the conference, estimates Africa's lithium resources could be worth US$9 trillion, calling it a potential game-changer. He argues African countries should develop a regional mineral-feedstock value chain covering the entire lithium production process, from mining to manufacturing. Countries could specialize in different stages of the value chain, creating a continent-wide industrial ecosystem that generates jobs, investment, technology, and trade.

For example, some countries could supply mining machinery, while others could produce critical mining consumables and support industries. Ncobe urges African leaders to create a single continental market to support the emerging lithium economy and leverage regional integration to build a competitive industry. He suggests stock exchanges in Nigeria and Ghana could play a significant role in mobilising capital for the development of Africa's lithium resources.

The lithium boom presents both an opportunity and a warning for Africa. The continent can either remain a supplier of raw materials or use its mineral wealth to build industries, jobs, technology, and prosperity at home. The real question is whether African leaders can turn the estimated US$9 trillion lithium wealth into African-owned industries and shared prosperity. This is the issue being discussed at the ongoing ACEP Summer School.