Green metals take centre stage at 2024 Africa Investment Forum

The Africa Investment Forum of 2024 has brought to light the growing importance of green minerals in the continent's industrialization efforts, particularly in the electric vehicle (EV) production sector. Entrepreneurs like Samuel Olu Faleye, the CEO of SAGLEV, a Nigerian-based EV plant, are keen on leveraging Africa's abundant green mineral resources, with 40% of these valuable minerals found on the continent. Faleye highlighted the need to de-risk funding for the development of these minerals to add value and improve Africa's economic bottom line, moving away from traditional practices of simply extracting and exporting these resources. In a bid to close the finance gap hindering the growth and competitiveness of EV production in Africa, Faleye emphasized the importance of platforms like the Africa Investment Forum to showcase the bankability of innovative ideas and attract investments from major players in the industry. The event has gathered heavy-hitting investors from across the globe, signaling a growing recognition of Africa's potential in the green industry. He stressed the significance of finding solutions to enhance Africa's role in green minerals, infrastructure financing, and overall sustainable development. Faleye's company, SAGLEV, stands at the forefront of Nigeria's EV market, aiming to address the increasing demand for electric mobility solutions in the country. The recent removal of fuel subsidies in Nigeria has prompted a heightened interest in electric vehicles as a cost-effective alternative for transportation fleets and ride-hailing services. However, despite the surging demand, Faleye noted a funding gap that poses a challenge to scaling up operations. At the Africa Investment Forum, he sought to convey to investors the immense potential in the market and the need for collaborative efforts to mitigate risks associated with financing, such as foreign currency fluctuations. Highlighting the low default rate in Africa, Faleye aimed to dispel misconceptions about the bankability of African projects and foster trust among investors to drive further investments in the sector. While policy frameworks like the National Automotive Industry Development Plan have laid a solid foundation for the EV market in Nigeria, Faleye emphasized that the key to accelerating market maturity lies in innovative financing models. Financing remains a critical element in achieving widespread adoption of electric vehicles and competing on a global scale, particularly with industry giants like China. Faleye underscored the importance of de-risking investments and exploring alternative financing mechanisms to make electric vehicle ownership more accessible and affordable for consumers. As the Africa Investment Forum progresses, Faleye's focus remains on engaging with potential investors and finance bodies to bridge the gap between the burgeoning demand for electric vehicles and the available financing options. He aims to convey the pressing need for collaborative solutions to unlock the full potential of the EV market in Africa. By aligning investor perceptions with the ground realities of the market, Faleye hopes to catalyze increased investments that will drive sustainable growth and innovation in the green minerals sector.