By Atlantic Reports

Africa's vast mineral wealth is generating enormous value for the global transition to clean energy, but the continent continues to capture only a fraction of the economic benefits, according to a new United Nations report.

The United Nations Trade and Development (UNCTAD) has revealed that although Africa produces most of the world's cobalt, it retains less than one per cent of the value generated across global green-energy supply chains.

The finding raises questions about the economic structure of the international minerals trade, where resource-producing countries often remain dependent on raw-material exports while industrialised economies dominate processing, advanced manufacturing and technology development.

UNCTAD disclosed the findings on Friday, October 9, 2026, in Geneva, in its flagship Trade and Development Report 2026, titled The Geoeconomics of Development.

The report examines how geopolitical competition, technological advancement and changing international trade policies are reshaping opportunities for economic growth, particularly in developing countries.

Its central warning is that possessing valuable natural resources does not automatically translate into industrial development, employment opportunities or greater national prosperity.

Africa's Cobalt Wealth, Limited Economic Returns

Cobalt is a critical mineral used in several industrial applications, including certain rechargeable batteries for electric vehicles and energy-storage systems.

As countries expand investment in cleaner technologies, demand for critical minerals has become increasingly important to industrial and economic planning.

Africa occupies a significant position in this global market, particularly through cobalt production in the Democratic Republic of the Congo.

However, UNCTAD's findings indicate that the continent captures a disproportionately small share of the value generated after raw minerals enter international processing and manufacturing networks.

The reported figure of less than one per cent concerns value retained across the wider green-energy supply chain, rather than Africa's share of cobalt production or global mineral-export revenue.

This distinction is important because the price of a raw mineral represents only one part of the eventual commercial value of batteries, electric vehicles and other manufactured technologies.

Much of that additional value is generated through refining, component production, engineering, manufacturing, intellectual property and distribution.

Where these activities take place outside resource-producing countries, the associated industrial profits, specialised employment and technological capabilities are also concentrated elsewhere.

Developed Economies Dominate High-Value Investments

The report identified a wider imbalance in international investment patterns.

According to UNCTAD, developing economies account for 60 per cent of new foreign direct investment in critical minerals and strategic materials.

However, developed economies capture approximately 70 per cent of the announced value of greenfield investments in high-value strategic industries.

These industries include semiconductor manufacturing, artificial intelligence infrastructure and technologies supporting the global energy transition.

Greenfield investment refers to the establishment of new business operations or facilities, rather than the acquisition of existing enterprises.

The figures suggest that while developing countries attract investment linked to the extraction and supply of strategic resources, wealthier economies continue to dominate investment in more technologically advanced industrial activities.

The report's investment figures refer to different categories of economic activity and should not be interpreted as directly comparable shares of the same investment pool.

Nevertheless, they illustrate UNCTAD's broader concern about the unequal distribution of industrial opportunities.

Why Mineral Wealth Has Not Guaranteed Industrial Growth

UNCTAD warned that resource abundance alone was insufficient to secure economic transformation.

Countries exporting unprocessed minerals may generate foreign-exchange earnings and government revenue, but their ability to create higher-skilled employment and develop manufacturing industries can remain limited.

For mining communities, the consequences can be particularly significant.

Mineral extraction may create jobs and commercial opportunities, but the wider benefits depend on local employment conditions, environmental safeguards, infrastructure investment and the extent to which businesses participate in the supply chain.

Where minerals are exported without substantial domestic processing, opportunities for additional industrial activity may be lost.

UNCTAD therefore urged developing countries to strengthen their processing capacity, technological expertise, infrastructure and industrial policies.

The agency also called for stronger relationships between foreign investors and domestic suppliers.

Such arrangements could help local enterprises participate in procurement, equipment maintenance, logistics, manufacturing and other supporting industries.

However, achieving these outcomes requires more than attracting foreign investment.

It also depends on reliable electricity, transport infrastructure, access to finance, technical skills and predictable regulatory frameworks.

Nigeria Faces Similar Questions Over Solid Minerals

The report carries implications for Nigeria's efforts to diversify its economy through solid-minerals development.

Nigeria has identified critical minerals and other mineral resources as potential contributors to industrial growth, investment and export earnings.

However, the economic value of expanding mineral extraction will depend partly on whether the country can establish commercially viable processing and manufacturing activities.

Exporting minerals in raw form can generate revenue, but domestic value addition offers opportunities to develop industrial skills, support local businesses and retain more economic activity within the country.

For Nigeria, this raises several policy questions.

Can mining investments be connected to local processing facilities? Are domestic businesses equipped to supply mining and manufacturing operations? What infrastructure and financing arrangements are required to make mineral processing competitive?

There are also questions about how host communities benefit from mining activities and how environmental and social responsibilities are enforced.

UNCTAD's report does not establish that Nigeria currently retains the same share of green-energy value as Africa's cobalt industry. Rather, its findings highlight structural risks that resource-producing countries must consider when designing industrial development strategies.

Global Competition Creates New Barriers

The report also examined the growing influence of geopolitical competition on international trade and investment.

UNCTAD observed that governments are increasingly treating strategic technologies, critical minerals and industrial supply chains as matters of national security.

This shift has encouraged greater state involvement in industrial policy, investment decisions and trade relationships.

For developing countries, the changing environment presents both opportunities and difficulties.

Demand for strategic minerals may attract investment into resource-rich economies.

At the same time, competition among established industrial powers can make it harder for emerging economies to enter advanced manufacturing sectors.

Countries seeking to move beyond raw-material exports may face challenges involving access to technology, financing, infrastructure and established international production networks.

UNCTAD warned that these barriers could reinforce existing inequalities unless developing economies strengthen their industrial capabilities and receive greater international support.

UN Calls for Processing, Technology and Regional Cooperation

To address the imbalance, UNCTAD recommended policies that would enable developing countries to retain a larger share of the value created from their natural resources.

The agency identified domestic processing, technological development, infrastructure and stronger industrial policies as important priorities.

It also emphasised the need to connect foreign investors with local suppliers to encourage skills development, employment and technology transfer.

Regional cooperation could provide additional opportunities.

African countries may be able to develop complementary industries, strengthen regional markets and coordinate infrastructure investments that support mineral processing and manufacturing.

However, the success of such initiatives would depend on practical implementation, adequate financing and sustained cooperation between governments and businesses.

UNCTAD also urged greater international collaboration to ensure that the benefits of emerging technologies and the global energy transition are more widely shared.

The Human Cost of Unequal Value Chains

Beyond trade statistics, the report raises important questions about livelihoods and economic opportunity.

Communities living near mineral deposits may experience the environmental and social consequences of extraction without receiving a proportionate share of the wider industrial benefits.

Young people seeking skilled employment may find limited opportunities where mining economies remain focused on extraction rather than processing and manufacturing.

Local enterprises may also struggle to participate when major supply contracts, advanced technologies and financial resources are controlled outside their countries.

A more inclusive minerals economy would therefore require attention to workers' rights, community development, environmental protection and opportunities for domestic businesses.

The challenge is not simply to increase mineral production but to ensure that resource development contributes meaningfully to economic diversification and improved living standards.

Turning Mineral Resources into Lasting Prosperity

UNCTAD's findings highlight a central challenge facing Africa and other resource-rich developing regions: how to convert natural-resource advantages into sustainable industrial growth.

The global transition towards cleaner energy is creating demand for minerals essential to batteries, electric vehicles and other technologies.

Yet the countries supplying these materials do not necessarily control the industries generating the greatest financial returns.

For African governments, the report reinforces the importance of moving beyond extraction-focused investment strategies.

Developing processing industries, supporting domestic manufacturers, strengthening technical education and improving infrastructure could help countries participate more effectively in higher-value economic activities.

The outcomes will depend on policy choices, investment conditions, international partnerships and the ability to translate mineral wealth into productive industries.

Africa's contribution to the global green-energy economy is already substantial. The more difficult question is whether the continent can secure a greater share of the jobs, technology and economic value generated from the resources it supplies.

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