KEY POINTS
- Africa retains less than one per cent of the value generated across global green energy supply chains, according to UN Trade and Development.
- Developing economies account for 60 per cent of new foreign direct investment in critical minerals and strategic materials.
- Developed economies capture about 70 per cent of announced greenfield investment value in high value strategic industries.
- UNCTAD urges developing countries to expand local processing, manufacturing and technological capabilities.
MAIN STORY
Africa retains less than one per cent of the value generated across global green energy supply chains despite producing most of the world’s cobalt, according to the United Nations.
UN Trade and Development, also known as UNCTAD, highlighted the imbalance in its Trade and Development Report 2026, released in Geneva on Friday.
The report, titled The Geoeconomics of Development, examines how geopolitical competition, technological advances and changing trade policies are shaping opportunities for developing economies.
It found that developing countries remain major suppliers of critical minerals used in electric vehicles, batteries, renewable energy systems and other strategic technologies, but much of the financial value is captured elsewhere through processing, manufacturing and advanced industrial production.
According to UNCTAD, developing economies account for 60 per cent of new foreign direct investment in critical minerals and strategic materials. However, developed economies capture approximately 70 per cent of announced greenfield investment value in high value strategic industries, including semiconductors, artificial intelligence infrastructure and technologies supporting the energy transition.
The agency said the contrast highlights the challenge facing resource rich economies that supply raw materials but have limited participation in the industrial activities that generate greater value.
UNCTAD called on developing countries to strengthen domestic processing, technological capabilities, infrastructure and industrial policies to increase the economic benefits they retain from their natural resources.
It also recommended stronger links between foreign investors and local suppliers to encourage manufacturing, employment and technology transfer.
THE ISSUES
Africa’s cobalt industry illustrates the difference between possessing valuable natural resources and capturing the wider economic benefits of their production. Mining generates economic activity, but countries may miss opportunities for greater industrial development when processing, component manufacturing and advanced technology remain concentrated elsewhere.
For Nigeria, the findings are relevant to efforts to expand the solid minerals sector and attract investment beyond extraction. Developing local processing and manufacturing capacity could create opportunities for jobs, supplier businesses and technical expertise, although achieving these outcomes would require suitable infrastructure, investment and industrial policies.
The challenge extends beyond attracting foreign capital. UNCTAD’s findings suggest that developing economies also need to build connections between foreign investors and domestic businesses so that investment contributes to local production and technology transfer.
Geopolitical competition and national security concerns are also reshaping access to strategic industries. Countries seeking to enter sectors dominated by established manufacturers may face greater barriers, making regional cooperation and stronger industrial capabilities increasingly important.
WHAT’S NEXT
UNCTAD has called for developing countries to expand domestic processing, strengthen technological and industrial capabilities, improve infrastructure and connect foreign investment with local suppliers. It also advocated greater international cooperation to help developing economies participate more fully in regional and global value chains.
BOTTOM LINE
Africa’s mineral resources do not automatically translate into a larger share of the value generated by the global energy transition. UNCTAD is urging developing economies to strengthen processing, manufacturing and technological capacity to capture more of the economic benefits.
Source: UN Trade and Development, Trade and Development Report 2026.
