Africa’s rich natural resources are playing a central role in the global energy transition. In a StoneTurn panel discussion, Advance in Africa, hosted by Partner Sarah Keeling, Alpha Sierra Founder Andrew Sekandi shares key insights into the changing landscape of Africa’s extractive industries and their future significance. Watch the clip below.

1. Africa’s Shift from Extractive to Non-Extractive Industries

• Mining, oil, and gas have long been central to Africa’s economy, especially in the 1990s when these industries were major economic drivers.
• As economies sought diversification, focus shifted to industries like fintech and commerce. This was seen as essential to reduce dependency on raw materials and mitigate risks from price fluctuations.

2. The Renewed Focus on Natural Resources

• In recent years, there has been a resurgence of interest in Africa’s natural resources. Investors and other stakeholders have examined how Africa’s natural resources play a bigger role on a global stage in light of the growing demand for critical raw materials, including copper, cobalt, and lithium.

3. Key Growth Factors: Rise of EVs, AI, and Geopolitical Shifts

• The growing demand for electric vehicles (EVs) and data centers, fueled by the expansion of AI and digital infrastructure, has amplified the need for Africa’s minerals and metals.
• Tensions between Western nations and China have brought Africa’s natural resources into sharper focus. Africa’s position as a key supplier of critical materials is now more vital than ever.

Conclusion:

Africa’s natural resources have shifted to the forefront of global conversation, with shifting geopolitical dynamics and technological advancements creating a renewed demand. Given Africa’s abundance of highly sought-after critical minerals, the continent is positioned as a key player in the future of global industries.

If you have any questions or would like to discuss these topics please reach out to Sarah Keeling or Mike Roos.

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