Skills Shortage Poses Challenge to Battery Manufacturing in Africa
The ambition to develop a robust battery manufacturing sector in Africa is jeopardized by a skills shortage, highlighting the necessity of value addition for the continent’s growth potential. Experts argue that to capitalize on the rising demand for electric vehicles and renewable energy technologies, Africa must focus on building local expertise.
PAPSS Gains Traction Among African Central Banks
The Pan-African Payment and Settlement System (PAPSS) has gained momentum as 28 African central banks join the platform, designed to enhance intra-African trade. This initiative aims to streamline cross-border transactions and reduce reliance on foreign currencies, thus making it easier for businesses to engage in trade across the continent.
Afreximbank Emphasizes Importance of Local Credit Rating Agency
At Afreximbank’s recent media roundtable in Abuja, Dr. George Elombi, the bank’s president, reiterated the need for Africa to establish an African-owned credit rating agency. He stressed that the continent can no longer let foreign institutions define its economic realities and borrowing costs. This shift is essential to empower African stakeholders and attract local and international investment.
Advocating for Africa’s Economic Narrative
Elombi argued that Africa must reclaim control over the narrative that shapes global perceptions of its economies. Citing inconsistent methodologies used by international rating agencies, he pointed out the need for African institutions to offer a more accurate and fair assessment of the continent’s economic landscape. His remarks underscore the importance of enhancing Africa’s image by highlighting its successes alongside its challenges.
Significant Investments in Energy Infrastructure
Elombi described Nigeria as the “heartbeat” of Africa’s industrial transformation, using the Dangote refinery as a prime example of how strategic investments can enhance economic resilience. Recently, Afreximbank invested $2.5 billion to expand the refinery’s capacity, emphasizing the initiative’s focus on energy security rather than merely accommodating promoter interests.
Focus on Local Processing of Minerals
Addressing Africa’s vast mineral resources, Elombi advocated for the local processing of these materials to foster job creation and boost industrial growth. He identified battery manufacturing as a key sector with transformational potential, especially in light of the global shift towards electric vehicles. By prioritizing investments in local processing rather than raw material exports, Africa can retain economic value within its borders.
PAPSS as a Cornerstone of Trade Infrastructure
Elombi highlighted that PAPSS represents one of Afreximbank’s most significant achievements despite a slow rollout. He explained the initial hesitance from some central banks regarding regulatory concerns, but emphasized the necessity of efficient payment platforms for true market integration under the African Continental Free Trade Area (AfCFTA). Moreover, plans are underway to issue PAPSS cards, enabling cross-border transactions in local currencies without prior conversion to foreign currencies.
