• FINANCE FORUM
local infrastructure to support mining activities and transportation . Infrastructure bottlenecks such as logistics and transportation , as well as power and water challenges remain prevalent . Although transport continues to receive the largest financing commitment , according to the Infrastructure Consortium for Africa ( ICA ), many parts of sub-Saharan Africa have been underinvesting in infrastructure as a share of GDP .
Southern Africa would undoubtedly benefit from developing battery metals value chains and retaining more of the revenues that these industries generate . However , it is not always viable to confine all parts of a value chain to one country or one part of a country , due to insufficient scale to attract major investment . Cross-border collaboration can lead to regional integration of value chains , which is a practical way of attracting downstream investment . For example , to achieve shared benefits of regional collaboration in battery manufacturing , different countries in a region could provide the key mineral inputs into the country that manufactures the battery .
As per Deloitte ’ s ‘ Africa ’ s role in a clean energy future ’ article , this however , requires improved regional trade and industrial policy coordination , among other things . It is also essential to identify and address challenges that obstruct regional value chain creation including hurdles to intra-regional trade , such as transport costs , tariff and non-tariff barriers , as well as the trade-offs associated with specialisation . The African Continental Free Trade Area ( AfCFTA ) agreement and development communities , such as the Southern African Development Community ( SADC ), will play an important role in promoting the building of regional value chains and markets , as well as reducing transaction costs , attracting investment , while supporting economic diversification and industrialisation .
Conclusion Junior miners , among others , have already shown that they are well-positioned to benefit from exploring for and developing battery metals projects in southern Africa . These companies , and the countries in which they operate , can fill an important gap in the market , by creating additional supply , through resource extraction , and value-adding products by establishing downstream capabilities . For Southern African countries to become globally competitive players and to take full advantage of the opportunity to increase downstream production capacity , and capture more of the full value-chain in the battery metals space , companies will need to be incentivised through targeted industrial policy making and favourable trade agreements . •
Most of the key battery metals projects within Africa are being developed or operated by juniors .