Transparency and Fair-Trade Practices are Key for a Just Energy Transition in Africa – ECA’s Antonio Pedro

Addis Ababa, 14 August 2024 (ECA) - Africa needs transparent and fair-trade practices for a just energy transition, said Antonio Pedro, Deputy Executive Secretary United Nations Economic Commission for Africa (ECA) at an African Consultative Webinar on Critical Energy Transition Minerals and the UN Global Framework on Just Energy Transitions in Addis Ababa Ethiopia.

He said that Africa needs to create a competitive mineral resources development environment which "allows it to ride the crest of mineral prices because technological developments, including those that create substitutes, are developing fast."

"Among other strategies to enhance the domestic footprint of the Critical Energy Transition Minerals (CETMs) sector, African countries need to curb the export of unfinished mineral products through value addition and beneficiation to reap rewards at the higher end of the mineral value chains," said Mr. Pedro.

The webinar was attended by officials and experts from governments, civil society and other stakeholders from the region.

Mr. Pedro noted the progress made by African countries to improve governance, but said challenges remain in many other areas such as taxation, value addition, and the strengthening of linkages. Furthermore, he said the exploitation of minerals poses multifaceted environmental, social and geopolitical challenges.

"The abundance of cobalt, manganese, lithium, nickel, copper, graphite, and other minerals positions Africa as a key player in shaping the future of clean energy supply and, with it, global sustainable development," said Mr. Pedro.

"But, a just and fair exploitation will generate sustainable jobs, diversify economies, and dramatically boost revenues which, can support development and transformation."

Presenting the work of the UN Secretary-General's Group on Critical Minerals for the Energy Transition and the UN Global Framework on Just Transitions, Angela Kariuki, Legal Officer at Law Division United Nations Environment Programme (UNEP), discussed the UN's efforts to support countries in transitioning to critical energy minerals through a just transition framework which aims to minimize environmental and social risked while harnessing the economic potentials of these resources.

"Key principles of the framework include assessing and managing nature and social-related risks, protecting local communities and promoting circularity in value chains," said Ms. Kariuki emphasizing on the importance of protecting people and the planets through these efforts.

Clovis Freire, Economic Affairs Officer at the Division on Technology and Logistics of the United Nations Conference on Trade and Development (UNCTAD) also stressed the importance of transparency and fair-trade practices for a just energy transition.

"Trust is crucial for a successful transition and there is need for communication and collaboration among stakeholders," he said.

In his presentation on the Regional context of the UN's work in the extractive industries sector, John Sloan Economic Affairs Officer, ECA emphasized the potential of mineral based development for economic transformation in Africa, highlighting the region's vast mineral endowments and the need for value addition and job creation in mining industry.

He called upon the private sector, governments and civil societies to revisit incentives for job creation in sectors like manufacturing and the need to address need for global policy stability given rapid technology changes.

"There is need to focus on mineral based development in Africa focusing on value addition and economic transformation," said Mr. Sloan

He highlighted that ECA is working with partners to support specific initiatives on battery and battery component manufacturing in DRC and Zambia.

In a panel discussion, Nellie Mutemeri, University of the Witwatersrand said sustainable mining practices for critical energy transition minerals in Africa should focus on artisanal and small-scale mining sectors.

He noted that artisanal and small-scale mining in Africa provides vital livelihoods for millions, particularly women and youth. However, challenges persist including lack of transparency and accountability in chains leading to unequal benefit sharing and negative impacts on vulnerable groups.

Gloria Magombo, Permanent Secretary for Energy and Energy Development, Ministry of Energy and Energy Development, Zimbabwe emphasized on the importance of value addition before exports citing the need for mandatory value addition to ensure maximum benefit from mineral resources. She reiterated the importance of value addition to maximize the benefit of mineral resources.

Moses Tshetlane, Director, Mienral Affairs Division, Ministry of Minerals and Energy, Botswana said regional cooperation is crucial in addressing climate change particularly in developing carbon sinks and funding university research in Africa to advance clean energy access.

"Countries must adopt policies with tangible targets to meet the threshold for clean energy access. Emphasis should be placed on the need for collective action to address this global challenge," he said.

Note to Editors.

About The UN Secretary General's panel

The UN Secretary General's panel on critical minerals was launched on 26 April 2024 and consists of the major critical energy transition minerals producing and consuming countries, as well as regional and international institutions active in the energy transition space, trade associations for mineral producers globally, civil societies.

Co-chaired by the European Commission and South Africa, the panel is developing, through a fully consultative process, voluntary guidelines which will compel stakeholders to responsibly participate in the CETMs supply chains.

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