Africa captures less than 1% of green-energy supply chain value, UN warns

The United Nations Conference on Trade and Development (UNCTAD) has warned that Africa captures less than one per cent of the economic value generated by global green-energy supply chains. Despite the continent producing the majority of the world’s cobalt—a critical component for electric vehicle batteries and renewable energy technologies—the financial benefits remain concentrated in nations that control processing, advanced manufacturing, and strategic technologies.

The UNCTAD Trade and Development Report 2026, titled ‘The Geoeconomics of Development’, highlights a significant imbalance: while developing economies account for 60 per cent of new foreign direct investment in critical minerals, developed economies capture approximately 70 per cent of announced greenfield investment value in high-value strategic industries such as semiconductors and artificial intelligence infrastructure.

The report emphasizes that resource abundance alone does not guarantee industrial development or economic transformation. To address this, the UN urges developing nations to strengthen domestic industrial capabilities, improve infrastructure, and enhance technological expertise. It also recommends establishing stronger links between foreign investors and local businesses to facilitate technology transfer and higher-value employment.