Africa Urged to Harness $29.5 Trillion in Mineral Wealth for Industrial Growth
Africa Holds $29.5 Trillion in Minerals but Must Boost Processing and Infrastructure to Capture Value
Africa holds an estimated US$29.5 trillion in mine-site mineral value, representing roughly 20% of global mineral wealth, yet the continent captures only a small fraction of the economic benefits, according to a new study by the Africa Finance Corporation (AFC).
The report, launched at the Mining Indaba in Cape Town, reveals that US$8.6 trillion of this value remains untapped due to limited geological data, uneven exploration, and transparency gaps that heighten investment risk.
AFC emphasizes that improving the availability and quality of geological data is a critical first step in attracting exploration capital.
Titled Compendium of Africa’s Strategic Minerals, the study argues that mine-site valuations significantly understate Africa’s true potential because they exclude the additional value created by processing minerals into steel, aluminium, fertilisers, batteries, and alloys. When assessed at the point of industrial use, Africa’s mineral endowment is far more substantial.
AFC President and CEO Samaila Zubairu noted that the Compendium reframes Africa’s minerals sector through a development lens, linking reserves and production to processing capacity, power supply, transport infrastructure, and regional industrial corridors.
He added that this approach can de-risk projects, reduce the cost of capital, and guide smarter investments into beneficiation and integrated value chains.
The report highlights a persistent misalignment between mineral production, infrastructure, and demand. Despite world-class deposits of iron ore and ferroalloys, African supply chains remain heavily influenced by Asian demand cycles, exposing producers to external economic shocks.
Recent slowdowns in Asian steel demand have already impacted African producers. In the Democratic Republic of the Congo, cobalt production quotas have been implemented to manage oversupply and declining prices.
In South Africa, primary steelmaking capacity has closed due to weak domestic demand and high costs, while in Gabon, manganese operations have periodically suspended production.
The study stresses that Africa’s challenge is not a lack of demand, but the failure to align mineral production, processing capacity, and infrastructure investment with the continent’s long-term development goals.
Infrastructure is central to the report’s recommendations, with a call for coordinated regional planning of railways, ports, and cross-border power transmission. Such investments can unlock scale, reduce costs, and support competitive, low-carbon mineral value chains.
Against a backdrop of global trade tensions and shifting industrial policies, the report urges Africa to move beyond exporting raw materials and instead position itself as a reliable, value-adding partner in strategic global supply chains.
It cites growing momentum in rare earth development in Angola, graphite in Mozambique, battery-grade manganese projects in Southern Africa, and the resumption of uranium production in Namibia and Malawi.
