Can you give an overview of the African Development Bank’s (AfDB) main missions? 

The overarching objective of the AfDB Group is to spur sustainable economic development and social progress in African countries through mobilizing and allocating resources for investment in African countries and providing policy advice and technical assistance to support development efforts. We have been around since 1964 and have 54 African member countries. We are one of the largest development banks in the world and the leading one in Africa. The Bank is actively involved in supporting the development of the mining sector in Africa through the implementation of the AMV. Through its public and private sector operations, the Bank has intensified efforts in recent years to foster the role of minerals as a catalyst for economic growth and poverty alleviation on the continent.

What is the AfDB’s take on artisanal mining, and de-risking projects while benefiting local communities? 

The African Development Bank has been actively supporting the formalization of Artisanal and Small-Scale Mining (ASM) in Africa. The Bank recognizes the importance of ASM as a source of livelihood for millions of people and aims to promote responsible and sustainable ASM practices through various initiatives. Currently, the Bank is supporting ASM projects in Liberia and Sierra Leone with a grant of US$1.4 million. In the DRC, about 15% of the country’s annual cobalt production is from the ASM sector. Whilst regulation in the ASM sector is not as efficient as in the large-scale sector, it is important to strengthen governance systems towards formalization and overall de-risking of the mining sector. 

Will empowering local value chains as opposed to a purely extractive-based model be key to Africa’s mining success? 

A conducive business environment, supportive policies, investment in infrastructure and human capital, and access to finance will ensure the development of local value chains. This will contribute to Africa shifting from being primarily an exporter of raw materials to becoming a hub for value-added manufacturing. The Bank started conducting value chain studies in strategic/green minerals about four years ago due to the opportunities in the energy transition. Based on the initial results, the following work was done with analytical support from Bloomberg New Energy Finance. The follow-up study justified the business case for the DRC to produce battery precursors. However, there will be a need to improve infrastructure and skills to make this happen. Another key factor in developing the battery and EV value chains in Africa is the need for a coherent strategy for the continent to engage its partners. Thus the Bank is leading the development of the African Green Minerals with its Partners (AMDC, UNECA, etc).

What will make the difference between success and failure for the African Green Minerals strategy?

Regional cooperation and smart partnerships will be key. We need to forge regional partnerships to address economies of scale. Governments must also support the industry with incentives including offtake agreements for battery and EV products, and the establishment of Special Economic Zones with adequate infrastructure. This is a key lesson Africa needs to learn from China. 

Where should the world be looking for the next story in African mining? 

The world should be looking at the SADC region, especially the DRC, Tanzania, Zambia, and Zimbabwe. These countries have the potential to rewrite Africa’s story, because of the huge mineral resources as well as renewable energy generation resources such as hydro, solar, and wind. Other regional blocs such as the Arab Maghreb Union (AMU), especially Morocco, are making inroads in the BEV value chains. As a development bank, we are willing to support our shareholders to facilitate their participation in the BEV value chains. 

What are the AfDB’s main priorities in 2024? 

Collaborating with the African Union to get the Heads of State to approve the African Green Minerals strategy is a key priority in 2024. There is, however, lots of interest from global stakeholders and Africa must keep focused on value creation on the continent. Africa also needs to use its significant mineral resources to address its energy poverty and fragility. The Bank will continue to implement interventions to improve good governance within the context of climate change and the energy transition to ensure resource-rich countries are well-placed to take full advantage of the opportunities.