The world's youngest and fastest growing country (Approximately 60% of Africans are under 25 years old), the continent has emerged as a magnet for consumer markets and products, making it an attractive destination for supply chains.
Another comparative advantage is Africa's rich reserves of important minerals such as aluminium, cobalt, copper, lithium and manganese, which are needed for high-tech and environmentally friendly products such as smartphones and solar panels. .
Extending energy supply chains to Africa is also an opportunity to accelerate climate action. The continent has at least a fifth of the world's reserves of more than a dozen metals essential to the energy transition. – Contains about 19% of what an electric car needs.
As the global commitment to clean energy intensifies, demand for such metals will soar. For example, electric cars require about six times more minerals than conventional cars.
In addition to having direct access to raw materials, African economies can help manufacturers shorten and simplify supply chains We also reduce transportation costs by processing metals locally into intermediate products such as batteries and screens.
Africa also offers green supply chain opportunities by leveraging the continent's green hydrogen potential and renewable energy resources, particularly solar.
To gain this comparative advantage, African countries need to increase productivity Improve logistics through the adoption of technology and leverage trade agreements.
Investment in the continent's infrastructure, such as ports, roads and railways, has been slow, contributing to delays that prevent companies from sourcing products from African countries.
Initiatives such as the African Continental Infrastructure Development Plan and South-South partnerships such as the Silk Road Economic Belt initiative can help improve regional infrastructure.