According to the President of the African Development Bank, Akinwumi Adesina, the future and growth of electric vehicles globally rely heavily on African countries, with Nigeria being one of them.
Note that since the global growth electric vehicle has experienced, its new growth by 2050 is projected to move from its current record of $7 trillion to $57 trillion. Nigeria and other African countries have a role to play in ensuring that.
Speaking on Wednesday, 8th November at the African Investment Forum 2023 held in Morocco, Adesina notes: “Africa has the largest sources of renewable energy sources in the world, including hydro and solar. And right here in Morocco, you have the Noor Ouarzazate, the largest concentrated solar zone in the world.”
According to facts presented by the AfDB president, Africa accounts for the largest source of green metals for the development of electric vehicles, including platinum (70 per cent), cobalt (52 per cent), manganese (46 per cent), bauxite (25 per cent), and graphite (21 per cent).
Despite the United States of America, Europe, and China being the biggest players in the EV market today, with China being the biggest player, Adesina cited an assessment by Bloomberg NEF that shows that the cost of manufacturing lithium-ion precursor batteries (that electric vehicles use) in Africa is three times less than in the US, China, and Poland.
Speaking on what African countries are doing to assume their lead role in ensuring the growth of EVs by 2050, Adesina noted that AfDB and partners are already developing a $20 billion Desert-to-Power project across 11 countries that share the Sahel zone, which when completed will be the largest solar zone in the world, Adesina said.
These are countries located in the Sahel region: Nigeria, Burkina Faso, Cameroon, Chad, The Gambia, Guinea Mauritania, Mali, Niger, Eritrea, and Senegal.
Adesina called on foreign investors to pick the initiative and join forces with AfDB in ensuring the success of this project saying:
“So, whether it is in oil and gas, minerals and metals, renewable energy, agriculture, or the labour force that will drive the global growth, Africa is where to be. Investors should see Africa not from what they hear, but from what the facts say.”
Justifying why Africa is a worthy place for this investment, he cited Moody’s analysis of default rates on infrastructure financing globally over the past 14 years which found Africa’s default rate, at 2.1 per cent, is the lowest in the world, compared to Eastern Europe – well over 10 per cent; and Asia, at well over 8 per cent.
Arguing further on why Africa is not as risky as widely perceived he also referenced the S&P Global report in February 2023 titled ‘African private equity activity surged to 5-year high in 2022.”
According to Akinwumi Adesina, the President of the African Development Bank, with enough support and investment, Africa will quickly assume its role as the continent that will lead the electric vehicle market to its projected growth by 2050.
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