The decision of US President Donald Trump's administration to suspend foreign aid and shut down the USAID agency has sent shockwaves across the development industry. In 2024, nearly a third of the $41bn in US foreign aid went to Africa, helping support various sectors from healthcare to education and sanitation.
Let us be clear about what is at stake. The Democratic Republic of the Congo supplies 70 percent of the world's cobalt – the essential ingredient in electric vehicle batteries. South Africa produces 75 percent of the world's platinum and 50 percent of palladium. Mozambique and Madagascar possess some of the largest graphite deposits globally. Zimbabwe has the largest deposits of caesium, a critical metal used in GPS and 5G systems.
More than just rocks and metals, these are the keys to the global clean energy transition. Every electric vehicle, solar panel, and wind turbine depends on minerals that Africa has in abundance.
Yet here we are, still exporting raw materials like colonial-era vassals while begging for aid from the same countries that profit from our resources. The math is infuriating: We sell raw cobalt for $26-30 per kg (2.2lb), while battery-grade processed materials fetch $150-200. We're giving away more than 80 percent of the value chain to foreign processors and manufacturers. This isn't just bad business – it's economic malpractice.
The global battery market alone will reach $250bn by 2030. The renewable energy sector is growing at breakneck speed, with solar installations increasing 26 percent annually.
