Trump's EV policy rollback: Implications for Africa’s industrialisation, energy transition

In a bold move to roll back the so-called EV mandate, the Trump administration is shifting its focus away from green technologies and towards traditional gasoline-powered vehicles. This decision has significant implications for the global economy, particularly in Africa, where the opportunity to advance industrialization, trade, and energy transition is ripe. CNBC Africa's Tabitha Muthoni recently sat down with Fadhel Kaboub, an Associate Professor of Economics at Denison University and author of Global South Perspectives on Substack, to delve into the ramifications of Trump's policy shift and how African nations can seize the moment. Kaboub highlighted the urgent need for African countries to design a joint industrial policy that prioritizes manufacturing and deploying renewable energy infrastructure, rather than simply being suppliers of raw materials. He emphasized the importance of finding technological partners and forming a united front to accelerate the continent's progress towards sustainable prosperity. The key theme that emerged from the discussion was Africa's potential to lead the green revolution and reshape its economic trajectory by embracing renewable energy technologies. Kaboub outlined three key points that underscore Africa's opportunity in the green revolution. Firstly, he emphasized the importance of co-designing a joint industrial policy among African countries to prioritize manufacturing renewable energy infrastructure. This approach would enable the continent to break free from its historical role as a supplier of raw materials with low value-added content. Secondly, Kaboub highlighted the need for African policymakers to strike a balance between short-term economic gains from oil exports and long-term commitments to sustainable energy transition. He advocated for a just transition framework that supports African countries in phasing out fossil fuel production gradually while leveraging the continent's renewable energy potential. Thirdly, Kaboub stressed the significance of African nations strategically positioning themselves to secure better trade deals and investment in sustainable industries. By harnessing its vast mineral deposits, young labor force, and renewable energy potential, Africa has the capacity to transform its economic landscape and drive industrialization. In response to the question of whether Africa is moving closer to seizing this opportunity, Kaboub acknowledged some progress in decolonizing foreign policy and decision-making in certain African countries. However, he underscored the need for a critical mass of African nations to adopt joint industrial, agricultural, and energy policies aimed at leapfrogging into sustainable prosperity. Kaboub emphasized the importance of finding a partner in the industrialized world willing to share technology to propel Africa's industrialization. Addressing concerns about the potential impact of Trump's policy shift on global commodity prices and African resource exporters, Kaboub expressed skepticism about the administration's ability to lower prices significantly. He argued that inflation pressure points in the U.S. economy, such as healthcare, real estate, and higher education, are driven by internal factors rather than external commodities. While Trump's focus on fossil fuels may temporarily affect energy prices, Kaboub highlighted the need to address monopolistic practices within the energy sector to curb inflation effectively. In conclusion, as the Trump administration steers the U.S. towards traditional industries, Africa stands at a pivotal moment to lead the green revolution and redefine its economic future. By embracing renewable energy technologies, fostering regional cooperation, and attracting sustainable investments, African nations can drive industrialization, energy transition, and economic prosperity. The path to sustainable development lies in seizing the opportunity to reshape Africa's role in the global economy and build a brighter, greener future.