How value chains can bridge African and European goals
ECDPM's analysis of value chains, particularly in the context of the green transition, has generated significant insights and a more realistic perspective to the ambitions of both Europe and Africa. Our work has focused on understanding how the European green transition can intersect with Africa's economic development objectives: aligning the interests of both continents.
As part of a new video series featuring ten ECDPM experts on our 2024 highlights, Bruce Byiers discusses our work on value chains across Africa and Europe.
A significant area of focus has been the analysis of the different stages of the battery value chain, examining existing capabilities in Africa and what policies would be required to move up this chain. This analysis takes into account initiatives like the African Continental Free Trade Area (AfCFTA) and the African Mining Vision, both aimed at facilitating this upward movement in value chains.
While moving up the value chain seems straightforward on paper, it is very difficult to do in practice. A key challenge identified is the technological angle: whether it is genuinely easy to progress from mining to the next processing levels, or if an entirely new set of capabilities is required beyond just investments and new factories.
There are further risks and complexities at the European level, with an interest in reducing dependency on China for batteries, yet Europeans themselves may not necessarily have the capability to do so. This highlights the intricate web of ambitions and challenges in the battery value chain, both in Africa and globally.
Our work aims to move beyond the simplistic narrative that Africa's mineral wealth automatically translates into successful green industrialisation. The challenge lies in linking this high-level story to the realities on the ground, including technological and political considerations.
Finally, a crucial element in creating these value chains, particularly within Africa where the AfCFTA aims to be a solution, is trade and trade facilitation: how to move pieces, parts, and components across borders effectively.
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