New industrial and trade dynamics are emerging in Africa, driven by renewable energy. The REN21 network analyzes how these value chains could strengthen economic cooperation across the continent.

Africa’s trade and logistics systems, historically focused on exporting raw materials, could be entering a new era driven by renewable energy value chains. This is a key finding of the report, "Africa Strategic Intelligence Brief: Unpacking an African Renewables-Based Economy," published in June by the REN21 network. The report analyzes how resources, trade, policies, and finance interact in building a renewables-based economy.

REN21 highlights several initiatives. One example is the special economic zone between Zambia and the Democratic Republic of Congo, which aims to process nickel locally for battery production. Morocco is involved through its electric vehicle manufacturing capabilities, and the report sees this as an example of inter-African cooperation based on industrial complementarities.

On the electricity front, regional markets are expanding. By 2040, the African Single Electricity Market could become the largest electricity trading platform, primarily for renewables. The integration of renewables into regional power pools is presented as a driver of growing energy exchange. In this context, the Southern African Power Pool (SAPP) illustrates its role in supporting systems affected by droughts and serving as a backup for aging coal-fired power plants.

REN21 also stresses the importance of aligning national, regional, and continental industrial policies, particularly through the Africa Green Industrialisation Initiative (AGII) and Africa’s Green Mineral Strategy (AGMS). These initiatives aim to strengthen local processing and support the manufacturing of green technologies in Africa.

The continent's resources are considerable. It holds 45% of the world’s technical potential in renewable energy and a significant share of critical mineral reserves for the energy transition. Yet, Africa still imports over 80% of the technologies needed to harness these resources and receives only a tiny fraction of global renewable energy investments.

Abdoullah Diop