By Iroyin Yoruba Television
The United Nations has warned that Africa continues to capture only a small share of the economic value generated by global green-energy supply chains despite the continent's significant role in supplying critical minerals used in batteries, electric vehicles and renewable-energy technologies.
The warning was highlighted in the United Nations Conference on Trade and Development's Trade and Development Report 2026, released in Geneva. The report examines how geopolitical competition, technological developments and changing trade policies are influencing economic opportunities around the world.
According to the findings reported on October 10, Africa produces most of the world's cobalt but retains less than one per cent of the value generated across global green-energy supply chains.
The findings point to a major challenge facing mineral-producing economies: possessing valuable natural resources does not automatically translate into industrial development, high-value employment or a substantial share of the profits generated by products manufactured from those resources.
Cobalt is an important component in several battery technologies, including batteries used in electric vehicles and energy-storage systems. Demand for critical minerals is closely connected to the expansion of technologies intended to support the global transition towards lower-carbon energy systems.
However, the UN report indicates that much of the financial benefit from these industries is concentrated in countries that control processing, advanced manufacturing and strategic technologies.
The agency is urging developing economies to strengthen their domestic industrial capabilities, improve infrastructure, develop technological expertise and establish stronger connections between foreign investors and local businesses.
The findings have implications for African countries seeking to diversify their economies, increase employment opportunities and move beyond dependence on exports of unprocessed natural resources.
THE GAP BETWEEN MINERAL WEALTH AND ECONOMIC VALUE
Africa's mineral resources have attracted international interest because of their importance to modern industrial production.
Cobalt, copper, lithium, manganese, graphite and other minerals are used in different technologies, including batteries, electrical equipment, renewable-energy infrastructure and advanced manufacturing.
These resources can create economic opportunities for countries that possess commercially viable deposits and the infrastructure required to extract them.
However, mining is only one stage in the production process.
After minerals are extracted, they may need to be concentrated, refined, processed into industrial materials and incorporated into components used by manufacturers.
Those components can then be assembled into batteries, vehicles, electrical systems and other finished products.
Each stage may generate additional economic value through specialised skills, technology, manufacturing capacity and commercial services.
Countries that concentrate primarily on extracting and exporting raw materials may receive only a limited portion of the value generated across the complete production chain.
By contrast, countries with established processing industries, advanced manufacturing facilities, research institutions and strong supplier networks can participate in more stages of production.
The United Nations report identifies this imbalance as a major challenge for developing economies.
Africa's mineral endowment creates opportunities, but the continent's long-term economic gains will depend partly on whether its countries can expand their participation in activities beyond extraction.
That process requires investment, skilled workers, reliable electricity, transport infrastructure, technical knowledge and policies that support competitive industrial development.
Without these foundations, mineral-rich countries may continue supplying raw materials to industries located elsewhere while importing more expensive finished products.
WHY COBALT MATTERS TO THE GLOBAL ENERGY TRANSITION
Cobalt is an important industrial mineral used in several applications, including particular types of rechargeable batteries.
It is especially associated with battery chemistries used in some electric vehicles and electronic devices.
The growth of electric mobility and energy storage has increased international attention on the security and reliability of critical-mineral supply chains.
Governments and manufacturers are concerned about obtaining the materials required to produce batteries and other technologies while managing price fluctuations, geopolitical risks and supply disruptions.
The Democratic Republic of the Congo is particularly important to the global cobalt industry because it is a leading producer of the mineral.
Its role illustrates the relationship between Africa's resource base and the industrial systems that depend on materials extracted from the continent.
However, the production of cobalt ore does not mean that every subsequent stage of the battery industry takes place in the country where the mineral was mined.
Processing, the production of specialised battery materials, cell manufacturing and final assembly may occur in different countries.
The distribution of these activities influences where employment, technical expertise and profits accumulate.
For African mineral producers, expanding participation in processing and manufacturing could create opportunities to retain a larger share of the economic benefits associated with global demand.
Achieving this objective would require substantial investment and careful planning.
Battery production involves demanding technical standards, quality control, reliable energy supplies and access to established customers.
Countries seeking to develop these industries must therefore consider whether they can build competitive production systems rather than assume that mineral ownership alone will attract manufacturers.
DEVELOPING LOCAL PROCESSING CAPACITY
The United Nations has called on developing economies to strengthen domestic processing and technological capabilities so that they can retain more value from their natural resources.
Local processing can create additional economic activity before raw materials leave the country.
Depending on the mineral and the technology involved, processing may support employment in engineering, equipment maintenance, laboratory testing, logistics and industrial management.
It can also create opportunities for local businesses to supply equipment, construction services, transport, packaging and other inputs required by industrial facilities.
However, establishing a processing industry is not simply a matter of constructing a plant.
Facilities require reliable electricity, water where necessary, transport connections, skilled employees and predictable operating conditions.
Investors must also consider the cost of equipment, the availability of suitable raw materials, environmental requirements and access to markets.
For some minerals, processing technologies are technically complex and require substantial capital.
Governments therefore need to evaluate which activities can be developed competitively within their economies and which may be more practical through regional cooperation.
The goal is not necessarily for every country to establish every stage of a supply chain independently.
Instead, countries may be able to develop complementary industrial capabilities, allowing several economies to participate in regional production networks.
For example, one country may specialise in mineral extraction, another in processing, and another in the manufacture of industrial components, provided the necessary infrastructure and commercial arrangements are in place.
Such cooperation could create broader opportunities for African businesses and reduce the concentration of economic benefits in a small number of manufacturing centres.
FOREIGN INVESTMENT DOES NOT GUARANTEE INDUSTRIAL TRANSFORMATION
Foreign investment can provide capital, equipment, technical knowledge and access to international markets.
For developing countries, attracting investment into mineral processing and manufacturing may therefore be an important part of economic diversification.
However, the volume of investment alone does not determine how much benefit remains within the host economy.
The United Nations report states that developing economies account for 60 per cent of new foreign direct investment in critical minerals and strategic materials.
At the same time, 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.
These figures highlight a difference between attracting investment into resource extraction and attracting investment into industries that manufacture advanced products.
Investment in a mine can expand production, generate government revenue and support employment. But investment in a battery factory or other advanced manufacturing facility may create additional opportunities in engineering, research, supplier development and technical services.
The economic effect depends on the nature of the project, its operating arrangements and its connections with local businesses.
Governments seeking greater benefits from foreign investment can examine whether projects provide training, purchase goods and services locally, develop local suppliers and transfer useful technical knowledge.
They must also consider whether domestic businesses can meet the quality, reliability and cost requirements of international manufacturers.
Clear regulations, transparent agreements and consistent industrial policies can help investors assess long-term opportunities.
At the same time, governments need to ensure that investment arrangements deliver benefits that justify the use of public resources and the environmental or social costs associated with industrial projects.
TECHNOLOGY AND THE CONCENTRATION OF PROFITS
The report highlights the importance of advanced technologies in determining which countries capture the largest share of value from modern industries.
Manufacturing sectors such as semiconductor production, battery technology and artificial-intelligence infrastructure require specialised equipment, research capabilities and highly skilled workers.
Countries with established technological ecosystems may be better positioned to develop intellectual property, manufacture complex components and supply products to international markets.
Developing economies that lack these capabilities may remain dependent on imported machinery, technology and specialised services.
This dependence can make it harder for local companies to move into higher-value activities, even when they have access to the necessary raw materials.
Building technological capacity requires sustained investment in education, technical training, research institutions and cooperation between universities and industry.
It also requires businesses that can commercialise research and develop products that meet market needs.
For Africa, the challenge extends beyond training a small number of specialists. Countries need wider industrial ecosystems that connect skilled workers with firms capable of creating and maintaining productive employment.
Technical education can help supply engineers, technicians, industrial chemists, software specialists and other professionals required by advanced manufacturing.
Research institutions can also contribute by adapting technologies to local conditions and helping businesses improve production methods.
However, these efforts require time and consistent funding.
The UN report's emphasis on technology reflects the fact that natural resources become more economically valuable when countries develop the capabilities needed to transform them into products and services.
THE IMPORTANCE OF INFRASTRUCTURE
Infrastructure is another major factor influencing whether African countries can expand local processing and manufacturing.
Industrial facilities require dependable electricity, efficient transport, reliable communications and access to water and other essential services.
When power supplies are unreliable or transport costs are high, production becomes more expensive and investors may be less willing to establish factories.
Mineral-processing facilities can also require substantial capital and specialised equipment, making the quality of supporting infrastructure especially important.
Transport connections determine how efficiently raw materials reach processing facilities and how finished products move to domestic and international markets.
Ports, railways, roads and border systems can influence the competitiveness of regional supply chains.
Infrastructure development may therefore need to be coordinated across countries rather than approached solely through isolated national projects.
Cross-border electricity networks, transport corridors and customs cooperation can help reduce some of the barriers that prevent African producers from participating in regional manufacturing.
However, infrastructure projects must be supported by realistic demand assessments, financing arrangements and maintenance plans.
Building facilities without ensuring that they can operate efficiently may create additional financial burdens rather than sustainable economic growth.
The challenge is to develop infrastructure that responds to identifiable industrial needs while supporting broader economic and social development.
ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES
Expanding mineral processing and manufacturing also raises environmental and social questions.
Mining can affect land, water systems and nearby communities, while processing facilities may create additional environmental pressures if they are not properly managed.
Industrial development therefore needs to be accompanied by appropriate environmental standards, monitoring and enforcement.
Companies should be expected to comply with relevant regulations, manage waste responsibly and address the risks associated with their operations.
Workers also need appropriate safety protections, training and access to the equipment required to carry out their duties safely.
For communities near mining and processing sites, meaningful consultation and transparent information can help ensure that local concerns are considered during project development.
Economic diversification should not be measured solely by the number of factories established or the volume of minerals processed.
It should also be assessed in terms of employment quality, community effects, environmental performance and the durability of the economic benefits.
Governments face the challenge of attracting investment while ensuring that projects contribute to sustainable development.
The United Nations report's broader focus on equitable development highlights the need to consider who benefits from industrial transformation and how its costs are distributed.
IMPLICATIONS FOR NIGERIA AND OTHER AFRICAN ECONOMIES
The report has implications for Nigeria and other African countries seeking to diversify their economies through solid minerals and industrial development.
Nigeria has identified the solid-minerals sector as one area with potential to support economic diversification beyond traditional dependence on oil and gas.
However, mineral resources alone cannot deliver the desired economic transformation.
The development of competitive processing industries requires reliable infrastructure, accurate geological information, technical expertise, transparent licensing arrangements and access to financing.
Governments also need to address illegal mining and ensure that mineral production complies with applicable laws and environmental standards.
For Nigeria, a stronger industrial approach could involve identifying minerals with commercially viable processing opportunities and determining how domestic businesses can participate in the associated supply chains.
The objective would be to increase the amount of economic activity generated locally, rather than rely entirely on the export of unprocessed resources.
Similar considerations apply to other African mineral producers.
Countries may benefit from cooperation in technical training, research, infrastructure and regional trade, particularly where industrial facilities require markets larger than a single national economy can provide.
However, strategies must reflect each country's resources, capabilities and commercial circumstances.
Not every mineral can support an economically viable processing industry in every location.
Governments need to evaluate costs, environmental effects, technology requirements and likely demand before committing public resources to major industrial projects.
WHAT GOVERNMENTS CAN DO
The UN report calls for stronger domestic processing, technological capabilities, infrastructure and industrial policies.
Turning those recommendations into results will require coordinated action by governments, businesses, educational institutions and international partners.
Governments can begin by identifying realistic opportunities to develop value-added industries around existing resource strengths.
They can also improve the policy environment for investment by providing clear regulations, reliable licensing processes and transparent arrangements for companies operating in the sector.
Infrastructure investment should be aligned with industrial priorities, while technical education should prepare workers for the skills required by actual or planned industries.
Support for local suppliers can help domestic businesses meet the standards required by large manufacturers.
International partnerships may provide access to financing, technical knowledge and markets, but agreements should be structured so that host economies can develop lasting capabilities.
Regional cooperation could also help African countries combine complementary strengths and reduce some of the costs associated with operating smaller national markets.
Progress will require realistic timelines and regular assessment of whether industrial policies are producing measurable benefits.
The key question is not simply how much mineral wealth a country possesses, but how effectively that wealth supports employment, technology, business development and sustainable public revenue.
A CHALLENGE THAT GOES BEYOND COBALT
Although cobalt provides a prominent example, the issue identified by the United Nations extends across multiple industries.
Developing countries supply many of the raw materials required for advanced manufacturing, renewable energy, digital infrastructure and other strategic sectors.
Yet supplying those materials does not automatically give them control over the technologies or manufacturing systems that generate the largest economic returns.
The same general challenge can arise whenever raw materials are exported for processing elsewhere and finished products are later imported at higher prices.
Moving into higher-value activities can help countries develop new industries, but it requires more than imposing restrictions on exports.
Industrial policies need to account for the availability of capital, energy, skilled workers, technology and customers.
Where those conditions are not in place, abrupt policy changes can disrupt existing production without creating viable alternatives.
A successful transition therefore requires a long-term approach that strengthens domestic capabilities while maintaining commercially sustainable access to international markets.
The United Nations' warning places this challenge at the centre of the debate about the economic benefits of the global energy transition.
CONCLUSION
The United Nations has warned that Africa captures less than one per cent of the value generated across global green-energy supply chains despite the continent's major role in producing cobalt and other critical minerals.
The findings of the Trade and Development Report 2026 highlight the difference between supplying raw materials and participating in the processing, manufacturing and technological activities that generate additional economic value.
For African countries, the challenge is to translate mineral wealth into productive industries, skilled employment, stronger local businesses and sustainable economic growth.
Achieving that objective will require reliable infrastructure, technical education, access to financing, effective industrial policies and investment arrangements that strengthen local capabilities.
It will also require regional cooperation and careful attention to environmental and social responsibilities.
The global demand for critical minerals may create important opportunities, but those opportunities will not automatically benefit the countries where the resources are extracted.
The central question for African policymakers is how to ensure that the continent participates more fully in the industries built around its natural resources.
The United Nations report provides a warning about the current imbalance and a call for action.
Whether African economies can capture a larger share of future value will depend on the policies, investments and industrial capabilities they develop in the years ahead.