In a recent event held in Addis Ababa, Rebeca Grynspan, the UN Trade and Development Secretary-General, highlighted Africa’s vast deposits of critical minerals needed for the global energy transition. Minerals such as cobalt, copper, and lithium found in abundance across the continent have the potential to power a sustainable energy future, but realizing this vision will require a shift away from the extractive model that has kept resource-rich African nations dependent and impoverished.

“Cobalt, manganese, graphite, lithium are not just elements on the periodic table,” Grynspan said. “They can be the building blocks of a new era – powering our homes, driving our vehicles, and connecting our world. Catalyzing a green revolution that can lift millions out of poverty and create a fairer world.”

To achieve this, Grynspan emphasized the need to embrace a new paradigm that prioritizes domestic value addition, fosters regional integration, and empowers local communities. This sentiment was echoed by Antonio Pedro, the deputy executive secretary of the UN Economic Commission for Africa, who said that adding value to critical minerals in Africa could make the continent a competitive hub for green industrialization.

“Imagine the potential if African minerals are processed into African batteries, installed into African cars that are driven across the continent and the world,” Pedro said. “This would accelerate the deployment of renewable energy and the electrification of transport systems on the continent, create decent jobs and make Africa a competitive hub for green industrialization.”

However, harnessing Africa’s critical mineral wealth for sustainable development will require a strategic and equitable approach to policymaking. Monique Nsanzabaganwa, the African Union Commission’s deputy chairperson, cautioned that some current and proposed rules and regulations threatened to undermine African countries’ efforts to increase beneficiation and value addition on the continent.

“In addition to the right policy mix, it also requires fair international structure and systems, especially in terms of regulations and rules,” Nsanzabaganwa said.

The event brought together leaders, diplomats, experts, and key stakeholders to chart a new development course for Africa by exploring ways to better harness the continent’s critical mineral wealth. With Africa home to sizeable reserves of the world’s critical energy transition minerals, participants discussed strategies to enhance revenue mobilization, boost regional value chain integration, and increase investment in infrastructure, skills, and innovation to support minerals-based industrialization while promoting climate action.

By embracing a new paradigm that prioritizes domestic value addition, regional integration, and empowerment of local communities, Africa can unlock the transformative potential of its critical mineral resources and pave the way for a sustainable energy future.

The state-owned Ethiopian Railways Corporation (ERC) has announced that it has filed a counter-argument to the International Court of Justice, challenging the inflated lawsuit submitted by the contractor for the Awash-Kombolcha-Woldia/Hara Gebya railway infrastructure project.

According to the corporation, the contractor, Yapi Merkezi, a Turkish company, had submitted a compensation claim to the arbitration panel, including various claims raised during the implementation of the project, as well as new claims and those related to the ongoing security crisis in the northern part of the country.

The $1.7 billion, 390-km railway project was commissioned under an international EPC Turnkey Contract in June 2012, with the contract becoming effective on August 7, 2014, following the fulfillment of the necessary implementation conditions.

“The construction of the project was a well-performing project until the construction was stopped due to the security crisis in the northern part of our country,” the ERC stated.

In response to the contractor’s claims, the ERC said it has made “appropriate legal and professional arrangements” and has announced its opposition to the “inflated lawsuit” filed at the International Court of Justice in London, as well as the filing of the “defendant-plaintiff lawsuit against the contractor.”

The corporation explained that the contractor had cited the security problem in the northern region and complaints related to payments as justification to terminate the project contract, which was effective from January 18, 2022.

The ERC further stated that it has submitted the necessary responses, evidence, and arguments to the London International Arbitration Court, where the two parties have been engaged in arbitration proceedings for the past two years.

“Most of the processes of responding, presenting evidence and hearing witnesses have been completed, and the remaining activities are being carried out according to the rules governing the arbitration,” ERC said in a statement.

As a key institution responsible for building modern railway infrastructure and connecting Ethiopia’s economic corridors, the ERC’s counter-argument at the International Court of Justice highlights the corporation’s determination to protect the country’s interests and ensure the successful completion of critical transportation projects.

In his report to the 80th IATA Annual General Meeting, Willie Walsh, the Director General of the International Air Transport Association (IATA), painted a largely positive picture of the air transport industry’s performance in 2024.

Financial Performance

According to Walsh, the industry is on track to generate record revenues of almost $1 trillion this year. However, expenses will also reach a new high of $936 billion, resulting in a net profit of $30.5 billion. While this profit figure does not represent a new record, it reflects a major achievement considering the industry’s struggles just a few years ago, said Walsh.

He noted that air travel remains good value for money, with 77% of 6,500 travelers polled across 15 markets agreeing with that assessment. This is not surprising given that the real cost of air travel has fallen 34% over the past decade.

However, Walsh cautioned that airlines’ profit margins remain wafer-thin, with the industry expected to earn a 5.7% return on invested capital this year, well below the average 9% cost of capital. He urged governments to understand the industry’s financial constraints before seeking new tax revenues.

Safety

On the safety front, Walsh reported that 2023 was the industry’s safest year yet, with no fatal accidents among IATA’s 336 member airlines or the 433 IOSA-registered carriers globally. He credited the IATA Operational Safety Audit (IOSA) program, which has become a cornerstone of global safety standards, and the IATA Global Aviation Data Management initiative, which captures data from 150,000 flights weekly.

Looking Ahead

Despite the positive results, Walsh said the industry must continue to promote global standards, modernize business practices, and build a more sustainable future. He expressed concern over the Netherlands’ plan to permanently cut Schiphol Airport’s capacity by at least 40,000 flights annually, which he said would be a blow to global connectivity standards.

Overall, Walsh’s report painted a picture of an industry that has made significant strides in recent years, but still faces challenges in maintaining profitability and navigating the complex regulatory landscape.