Speaking at the 10th Africa Regional Forum on Sustainable Development (ARFSD), in Addis Ababa, capital of Ethiopia on Thursday, Deputy Secretary-General of the United Nations Amina Mohammed said Africa is home to 50 to 60 percent of the world’s most coveted solar energy resources but the continent only attracted two per cent of global investments on renewable energy over the past two decades.
“Africa is home to a significant proportion of the world’s mineral resources that are critical to the global renewable energy revolution – an immense potential source of wealth for the continent but an insignificant portion of it has been exploited,” said Mohammed.
She said it is worth remembering that Africa’s electric vehicles value chain is estimated to be worth nearly 60 trillion U.S. dollars by 2050.
Mohammed said global financers shall support African countries in their efforts of extracting critical minerals such as copper and cobalt and helping them generate renewable energy .
According to the deputy secretary-general, however, net transfers of capital from the international financial institutions to developing countries fell by more than half last year.
“International financial institutions are trying to buttress developing countries, but have been unable to stem the tide rather capital is going out of the developing world,” she said
The UN official said bondholders and commercial banks have taken over 300 billion U.S dollars out of developing countries over the last two years.
Speaking at the same event, Claver Gatete, executive secretary of the United Nations Economic Commission for Africa (UNECA), said African governments must delve into strategic interventions that leverage the continent’s vast natural resources, particularly critical minerals, which are essential for the transition to green economies.
Gatete said renewable energy stands as a backbone for sustainable development in Africa, with untapped opportunities to drive investments and promote energy security across the continent.
“In addition to a unique opportunity the African Continental Free Trade Area (AfCFTA) presents to boost agribusiness and enhance food security across the continent, African governments must take advantage of the opportunities to tap into the vast renewable energy resources to turn the looming climate disasters into climate resilience,’ Gatete said.
MG/abj/APA