Unleashing America’s Energy: Implications for Africa’s Energy and Mineral Landscape
On January 20, President Trump signed an Executive Order titled “Unleashing American Energy,” signalling a significant shift in U.S. energy and mineral policies. The order prioritizes domestic energy production and non-fuel mineral development, while rolling back regulatory frameworks around renewable energy and electric vehicles (EVs). Although its focus is firmly on advancing American interests, this policy is set to have ripple effects across the globe, especially Africa—a continent deeply integrated into the global energy and mineral supply chain.
At its core, the order seeks to bolster U.S. energy independence, industrial resilience and national security. It emphasizes the expansion of oil, gas, and coal production, alongside the establishing the U.S. as a leading producer and processor of critical minerals like rare earth elements. The policy also removes mandates for EV adoption, citing the need for consumer choice, and proposes eliminating subsidies that prioritize EVs over other technologies. Furthermore, it directs a regulatory review to ease domestic energy resource development and protect consumer access to traditional goods such as gas stoves and gasoline-powered vehicles.
But what does this mean for Africa?
Africa’s Role in the Global Critical Mineral Race
Africa holds some of the largest reserves of critical minerals essential for modern technologies, including cobalt in the Democratic Republic of Congo (DRC), platinum in South Africa, and lithium in Zimbabwe. With the U.S. ramping up its domestic mineral production, African exporters might face intensified competition, especially in markets like rare earth processing, where China currently dominates.
For instance, South Africa’s platinum mining sector—a key player in catalytic converter production—may encounter reduced demand if U.S. automakers pivot away from EV technologies reliant on platinum-group metals. Similarly, countries like the DRC, which supplies over 70% of the world’s cobalt, may see changes in market dynamics as the U.S. seeks to diversify its supply chains and reduce reliance on foreign sources.
On the flip side, Africa could position itself as a vital partner in the global energy transition by capitalizing on its resource wealth and exploring downstream value addition. Policies like the African Green Minerals Strategy are already designed to boost regional collaboration and mineral beneficiation, offering a potential counterweight to the U.S.’s inward focus.
Energy Market Dynamics and Africa
The order’s focus on fossil fuels may influence global energy prices. An increase in U.S. oil and gas exports, could lower global oil and gas prices. This would benefit energy-importing nations like Kenya, which rely heavily on oil for transport and industrial activity, by reducing their import costs. However, this short-term benefit comes with long-term risks, particularly as it diverts attention from the urgent need to transition to cleaner energy systems.
For oil-exporting nations such as Nigeria and Angola, a price drop could exacerbate fiscal challenges. Prolonged periods of low oil prices could strain government budgets and undermine economic development. Nigeria, which derives over 90% of its foreign exchange earnings from oil, risks economic instability if revenue from exports dwindles further.
More troubling is the potential impact on Africa’s renewable energy landscape. For years, U.S.-Africa partnerships like Power Africa have helped fund transformative renewable projects across the continent, from Kenya’s geothermal energy plants to Morocco’s solar megaprojects. These initiatives have expanded access to clean energy as well as affordable, sustainable power for millions still without electricity on the continent. However, with the U.S. prioritizing fossil fuels, these investments may decline, slowing progress toward Africa’s energy transition goals.
Similarly, the shift away from EV mandates and subsidies may also affect Africa’s nascent EV sector. While countries like Kenya and Rwanda are both pioneers in EVs, reduced global momentum could slow down international investments in this sector.
Environmental and Geopolitical Implications
President Trump also signed another Executive Order titled “Putting America First in International Environmental Agreements”. A critical aspect of this executive order is the U.S.’s retreat from global climate leadership, including multilateral forums such as the Conference of the Parties (COP). Historically, American influence at COP has shaped global climate finance mechanisms, emissions targets, and technology transfers. The absence of strong U.S. leadership at COP could embolden other nations to deprioritize climate commitments, thereby weakening global efforts to combat climate change. This is particularly concerning for Africa, which contributes just 4% of global greenhouse gas emissions but bears the brunt of climate change impacts, including droughts, flooding, and food insecurity.
The continent has also long relied on global agreements like the Paris Climate Accord to secure funding for adaptation and mitigation projects. For instance, countries like Mozambique and Madagascar, which face devastating cyclones and rising sea levels, have benefited from international climate finance to build resilience while Ethiopia and Senegal rely on these funds to implement national climate action plans. The withdrawal of U.S. support could lead to funding gaps, leaving African nations struggling to finance their ambitious adaptation and mitigation strategies.
Geopolitically, Africa may need to reevaluate its alliances. Countries like China, which already have significant stakes in Africa’s energy and mineral sectors, may deepen their influence as the U.S. pivots toward self-sufficiency. This could present both opportunities and challenges for African nations seeking to negotiate equitable terms and maintain sovereignty over their resources.
Turning Challenges into Opportunities
While the U.S. policy shift introduces uncertainties, it also highlights opportunities for Africa to carve out its niche in the global energy and mineral supply chain. By scaling up domestic renewable energy investments and expanding mineral beneficiation efforts, African nations can reduce reliance on raw material exports and capture more value domestically. Resource-rich nations could explore regional partnerships to strengthen intra-continental trade and reduce exposure to external market shocks.
While the Executive Orders are fundamentally domestic policies, their implications for Africa are far-reaching. From reshaping energy trade dynamics to altering the critical minerals supply chain, the policy shift represents both challenges and opportunities for the continent.
By leveraging its natural resources. advancing regional cooperation and maintaining a strong voice in global climate negotiations, Africa can navigate this shifting landscape and emerge stronger in the global energy and mineral markets. But to do so, it must act strategically, ensuring that its interests are safeguarded in an era of changing global priorities.