The extractive trap has a green exit

A cycle of extraction

For five centuries, raw materials have flowed out of Africa and Brazil at low cost to be used as inputs elsewhere, often returning to their source countries embedded in expensive finished goods. This is the "extractive trap" described by Désiré Assogbavi and Renata Albuquerque Ribeiro in a commentary published by dtnext.in. They argue that the energy transition offers a critical opportunity to escape this dynamic, provided these economies leverage their vast resources and mutual cooperation to build thriving green industries of their own.

The current global energy crisis has made the transition all the more urgent. Supply disruptions and rising costs have put pressure on governments, households, and businesses in many countries, weakening productivity, straining food supplies, and exacerbating economic inequality. The effects are particularly acute in many African countries, which already struggle with persistent poverty, limited energy access, and inadequate infrastructure. Africa's energy-producing countries are not immune, not least because they often export crude oil while importing costlier refined products like diesel and gasoline.

Deep-rooted problems

But the problem runs far deeper than the current crisis. As a recent Oil Change International report shows, decades of extraction have produced income concentration, economic dependency, external vulnerabilities, and the weakening of other productive sectors. Achieving broad-based development requires a new approach, the authors contend, one which leverages South-South cooperation to advance green development and sustainable industrialization.

Brazil and African countries such as Kenya, Namibia, South Africa, and Tunisia are particularly well-suited to spearhead such a strategy, acting not only as diplomatic partners but as co-producers of a green industrial transformation. Since returning to the presidency in 2023, Brazil's Luiz Inácio Lula da Silva has emphasized the importance of South-South cooperation, not least to advance the climate and development agenda. He has resumed official visits to African countries such as Mozambique and South Africa, signaling a renewed commitment to the partnership.

Mineral wealth and renewable potential

Africa and Brazil hold substantial reserves of critical minerals including cobalt, graphite, lithium, manganese, nickel, and rare-earth elements. The United Nations reports that trade in critical minerals reached roughly $2.5 trillion in 2023, over 10% of global trade, and is projected to triple by 2030. The International Energy Agency's Global Critical Minerals Outlook 2025 projects that lithium demand could grow fivefold by 2040, while demand for cobalt and rare earths could increase by 50-60%.

Both regions also have some of the best conditions for solar- and wind-power generation. Africa holds 60% of the world's best solar resources, yet receives only about 3% of global energy investment and 2% of clean-energy investment. Decentralized solar-power installations are proliferating in African countries, often using pay-as-you-go solutions, which are expanding energy access in rural and underserved areas.

Brazil already contributes almost 7% of the world's renewable-energy production, despite having only 3% of the global population and 2% of world GDP. The Amazon Energy Program aims to replace diesel-based power generation in the Legal Amazon with clean energy, while Brazil's Luz para Todos program has connected more than 17 million rural Brazilians since 2003, demonstrating the potential for large-scale electrification.

The path forward

The International Renewable Energy Agency projects that the energy transition could create millions of jobs in Africa by 2030, offering a concrete economic benefit beyond energy access. Yet African countries face extremely high borrowing costs, which constrain their ability to finance green industrialization. The authors argue that alternative cooperation mechanisms, joint South-South financing initiatives, increased support from development banks, and greater private-sector participation are needed to advance this agenda.

Assogbavi and Ribeiro conclude that the key for these economies is to leverage their resources strategically, rather than remaining mere suppliers of raw materials. The energy transition, they argue, offers a chance to build green industries that generate broad-based prosperity—provided the political will and financial support are there to seize it.