AfDB’s Adesina: Africa Poised to Dominate Electric Vehicle Market

The African Development Bank (AfDB) Group President, Akinwumi Adesina, has emphasised Africa’s important position in the electric vehicle market, which is predicted to increase from $7 trillion to $57 trillion by 2050.

The majority of the green metals needed to produce electric vehicles—platinum (70%), cobalt (52%), manganese (46%), bauxite (25%), and graphite (21%), are found in Africa. Environmental concerns and technology improvements have led to a considerable growth in the worldwide electric vehicle industry. The three largest EV markets in the world are China, the US, and Europe.

According to a Bloomberg NEF analysis that Adesina referenced, producing lithium-ion precursor batteries in Africa is three times less expensive than in the US, China, and Poland. Africa is resilient and expanding well in spite of obstacles; in 2022, its real GDP grew by 3.8%, more than the global average of 3.5%. In 2023–2024, five of the six best-performing African nations are expected to return to the top ten fastest-growing economies globally.

When the $20 billion Desert-to-Power project is finished, it will be the largest solar zone in the world and is being developed by the AfDB and partners across 11 countries that share the Sahel zone. Investing in Africa should be done so on the basis of facts, not hearsay, according to Adesina’s advice. He referenced a study conducted by Moody’s on infrastructure finance default rates worldwide over the last 14 years, revealing that Africa has the lowest default rate in the world—2.1%.

Since its start in 2018, the AfDB-sponsored Africa Investment Forum has attracted over 16,500 attendees and generated interest in investments totaling close to $143 billion. $11 billion in investment gaps in liquified natural gas, renewable energy, agribusiness, industrial manufacturing, creative industries, housing, and transportation have been bridged by the forum.