Africa’s green economy: Transforming mineral wealth into prosperity

Imagine two neighbouring villages, both rich with rare minerals. The first village, eager to harness its newfound wealth, allowed companies to extract resources without safeguarding its land or people.

Temporary prosperity followed - new schools, paved roads - but at a steep cost. Within a few years, their landscape was degraded, water polluted and the community divided.

In contrast, the second village took a long-term approach. The community agreed: “If we do this, we do it for our grandchildren, not just for ourselves.”

They worked with experts to ensure sustainable extraction and reinvestment in their community. Fast forward 10 years: their lands remained fertile, children were educated in state-of-the-art schools, and their economy thrived not just from mining but from industries that had emerged around it.

This story is not just a metaphor; it mirrors the path Africa should choose as it harnesses its unparalleled mineral wealth. The world is racing toward a greener future.

Electric vehicles are becoming mainstream, renewable energy is reshaping power grids, and countries are scaling up their ambitions to address the climate crisis, driving demand for critical minerals - many of which Africa holds in abundance, including cobalt, lithium, and rare earth elements.

Yet, this wealth contrasts starkly with the realities of many resource-rich African nations. Poverty, environmental degradation, and economic instability persist.

The question remains: why has Africa’s mineral wealth not translated into shared prosperity? ...And why, despite Africa's mineral wealth, do so many communities see little to no benefit? This is the paradox of our time, the so-called "resource curse."

This “resource curse” is not Africa’s inevitable fate. The continent has the resources, talent and potential to drive its own green revolution and, in doing so, redefine its economic trajectory.

The global green transition can be Africa’s industrial revolution - if we seize the moment with bold leadership, strategic vision, and a commitment to change. We must not remain mere suppliers of raw materials but become architects of our own destiny. This is a moment to transform potential into progress and progress into prosperity.

The first step is understanding what lies beneath our feet. Strong geological knowledge is crucial for attracting strategic investments and maximising the value of our resources. Infrastructure beyond mining, is critical for broader economic growth.

Africa’s greatest resource, however, is its people. Developing a skilled workforce for the green mineral sector is essential. Identifying the necessary skills and building institutions that support industrial growth is key.

Rwanda’s vocational training in renewable energy technologies provides a model for other African nations seeking to prepare their workforce for the green economy.

Africa should reimagine its relationship with its resources. The old model of resource extraction is unsustainable, it leaves Africa vulnerable to price volatility. Prioritising value addition is essential.

Processing and manufacturing resources domestically will create jobs, retain wealth, and strengthen Africa’s role in global supply chains. This shift is about more than economics; it is about taking ownership of our resources and ensuring Africa drives innovation and progress.

It is time for Africa to take its place at the forefront of the green economy and show the world what we are capable of!

History has shown that poor resource management leads to missed opportunities. Too often, Africa’s wealth has fuelled extraction without transformation. To change this, strong leadership is non-negotiable. Leaders must think beyond short-term profits and focus on long-term national gains.

Transparent governance, smart policies, and institutional accountability are essential. When communities at the heart of the supply chain benefit, industries thrive.

Governments need to create policies that advance industrialization, such as special economic zones for green technologies and transportation corridors linking mining to downstream industries like manufacturing hubs. Resource-based industrialization should be central to Africa’s economic strategy.

The time to act is now!

While Africa needs to lead in shaping its green future, it cannot do so alone. The global community has a responsibility to support this transition. New strategic partnerships should provide financing, technology transfer, and fair-trade policies.

If the world truly cares about a green future, it must recognize Africa’s role as a leader, not just a supplier. And Africa must rise to this challenge with urgency, ambition, and clarity of purpose.

Africa needs to use its voice to demand better: fair prices for its resources, access to global markets, and investment flows to drive its competitiveness.

The African Union’s Agenda 2063 provides a roadmap. Now, it is time to make it a reality. African leaders need to approach negotiations from a position of strength, knowing that Africa’s resources are indispensable to the world’s green ambitions.

The stakes are high as Africa’s mineral wealth is a foundation for transformation, not just for the continent, but for the world. So, we must transform our mineral wealth into a force for good. This is not just about economic growth; it is about building a future where every African can thrive.

The world is changing, and Africa must decide: will we watch from the sidelines, or will we lead? The question is not whether Africa can rise to the challenge. The question is: will we seize this moment?

The author is the Principal Climate Change & Green Growth Officer with African Development Bank.