— Africa’s transition to renewable energy must be accompanied by industrialisation and value addition, or the continent risks remaining a “price taker” in the global economy, Africa Change Lab has warned.
This was disclosed by Africa Change Lab Executive Director Bhekumuzi Dean Bhebhe in an exclusive interview with Climate Watch Managing Editor Ishmael Barfi.
Bhebhe said Africa’s energy transition should be understood not only as a climate imperative but also as a structural economic opportunity to reshape production systems, build competitive industries and strengthen the continent’s position in global value chains.
He warned that despite Africa’s vast reserves of oil, gas and critical minerals, the continent continues to export raw materials while importing refined and manufactured goods at significantly higher costs — a pattern that entrenches dependency and limits long-term development gains.
“The energy transition presents a major opportunity for Africa,” Bhebhe said. “But if we continue exporting raw materials and importing finished products, we will remain price takers rather than price makers in the global economy.”
Structural Constraints and Limited Industrial Capacity
Bhebhe noted that limited refining capacity and underdeveloped manufacturing systems remain key constraints preventing Africa from capturing value from its natural resources.
He explained that while global demand for critical minerals and clean energy technologies is rising, African economies risk missing out on the associated industrial and job-creation opportunities if value addition is not prioritised.
According to him, the current structure of trade — where raw commodities are exported and refined products are imported — continues to expose African economies to external shocks and exchange rate pressures.
Energy Transition as Development Pathway
The Africa Change Lab Executive Director stressed that the energy transition should be treated as a development strategy, not only an environmental agenda.
He said investments in renewable energy systems, industrial processing and local manufacturing could unlock new growth pathways, create jobs and strengthen economic resilience across the continent.
“Africa is rich in resources, but we must move beyond being suppliers of raw materials,” he said. “The transition must be designed to build industries, create jobs and retain value within African economies.”
Bhebhe added that climate action, energy access and economic transformation must be pursued in an integrated manner to achieve meaningful and sustainable development outcomes.
Currency Pressure and Global Market Vulnerability
He further warned that Africa’s dependence on importing refined products places sustained pressure on national currencies, as countries are forced to spend scarce foreign exchange on energy imports.
This, he said, reinforces Africa’s position as a price taker in global markets and reduces fiscal space for domestic investment in infrastructure, education and industrialisation.
Call for African-Led Industrial Transition
Bhebhe called for a coordinated Pan-African approach to the energy transition that prioritises local value addition, regional industrial development and African leadership in global climate and energy negotiations.
“Africa is for Africans, and Africans should be leading,” he said. “We need a coordinated Pan-African framework that ensures the energy transition becomes a driver of industrial transformation, not just resource extraction.”
He said Africa Change Lab is working to integrate climate policy, energy systems and development planning into a unified systems approach aimed at strengthening coordination and unlocking long-term structural transformation.
Bhebhe concluded that the success of Africa’s energy transition should ultimately be measured not only by emissions reductions, but by its ability to generate sustainable jobs, strengthen industrial capacity and improve living standards across the continent.
Source: www.climatewatchonline.com
