The role of African extractive industries in the global energy transition: An analysis of barriers and strategies

Abstract

Endowed with a significant proportion of the world’s petroleum and solid mineral resources, Africa is the location of a vibrant and dynamic extractive industries sector, which today, is its chief economic mainstay. The revenue generated from the extractive industries has been a significant source of finance for public infrastructure development and investments in education, health and the development of other economic sectors across the continent. However, the African extractive industries have faced massive setbacks in recent years, in particular due to the economic disruptions caused by the coronavirus (COVID-19) pandemic, and the global transition to a low carbon economy that has formed a central part of ongoing efforts to respond to the climate change emergency. These challenges have accentuated concerns on the current and future relevance of the African extractive industries in a low-carbon economy world order.This article examines the role played by the African extractive industries in the global energy transition, contextualising these concerns against a continuum of disruption arising as a consequence of the COVID-19 pandemic and emergent efforts to redress the crisis posed by anthropogenic climate change. If well managed, extractive resources could play a crucial role in advancing energy security and transition in the African continent in the face of these challenges. In addition to its role in addressing current high levels of energy poverty across Africa in this disruptive setting, environmentally-responsible production of extractive resources can help sustain economic and social development across Africa in going forward. This article examines the current opportunities and challenges for cleaner and environmentally-responsible extractive investments in Africa in a low carbon world. It analyses the preconditions and barriers to environmentally-responsible fossil fuels developments in Africa and highlights the key considerations for African policymakers. Its analysis is informed by recognition of, and sensitivity towards, the extreme disruption to fossil fuel governance embodied by the twin concerns of the COVID-19 pandemic and the current “climate emergency.” Through a qualitative analysis, this research has found that if well-managed, African resource-rich countries could utilise the revenues from the extractive industries to invest in low carbon technologies.