Bank chief warns of linking African loan payment to critical resources

Head of the African Development Bank called for an end to loans in exchange for oil or critical minerals used in smartphones and electric car batteries as collateral.

Akinwumi Adesina said such loans lead to undervaluing natural resources of African countries and further erode financial stability prospects.

The transition towards renewable energy and electric vehicles has triggered a surge in the need for essential minerals, which in turn is fueling the increase in such loans.