Africa sits atop an estimated US$29.5 trillion in mine-site mineral value, representing around 20 percent of global mineral wealth, yet the continent captures only a small fraction of the economic potential embedded in these resources, according to a new study by the Africa Finance Corporation (AFC).
Launched at Mining Indaba in Cape Town, the report, titled Compendium of Africa’s Strategic Minerals, emphasizes the need to reframe the continent’s mineral sector through an African development lens. It places industrialization, infrastructure, and long-term regional demand at the heart of mineral strategy, rather than treating resources solely as export commodities.
AFC said about US$8.6 trillion of Africa’s mineral wealth remains undeveloped, citing fragmented geological data, uneven coverage, and limited transparency as key barriers that elevate perceived investment risk. The study argues that improving data quality is a critical first step to de-risk exploration and attract capital.
“Mine site valuations significantly understate Africa’s true mineral potential because they exclude the value created when raw materials are processed into steel, aluminium, fertilisers, batteries and alloys,” AFC President and CEO Samaila Zubairu said at the report’s launch. “When measured at the point of industrial use, Africa’s mineral endowment expands by an order of magnitude, revealing substantial latent value.”
The Compendium maps full value chains, linking mineral reserves and production to processing capacity, power and transport infrastructure, and regional industrial corridors. By enhancing transparency, it aims to lower the cost of capital and guide smarter investment into mining and the enabling infrastructure required for beneficiation and integrated regional value chains.
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The report highlights a mismatch across Africa between mineral production, infrastructure, and industrial demand. For example, the continent possesses world-class ferroalloy deposits, including manganese, chromium, and nickel, as well as growing iron ore output. Yet these supply chains remain commercially linked to Asian steel cycles rather than Africa’s own industrial needs.
“This exposure is economically costly,” the report said, citing examples from across the continent. In the Democratic Republic of Congo, cobalt production quotas were imposed to manage oversupply and falling prices. In South Africa, primary steelmaking capacity has shut down amid weak domestic demand and fragmented off-take agreements. In Gabon, manganese operations have periodically halted production due to softer alloy demand from Asia. Meanwhile, Africa continues to expand power systems, transport networks, housing, and industrial capacity all requiring these materials.
The Compendium positions infrastructure as central to mineral strategy, not merely as a support mechanism but as the system linking raw materials, processing capacity, and end-use demand. Power cost and reliability, transport connectivity, and access to industrial land are cited as critical factors determining the viability of local beneficiation.
The report maps mineral deposits alongside railways, ports, power hubs, and transmission networks to identify where regional value chains could realistically develop. It calls for coordinated interventions in shared rail corridors and cross-border power systems, particularly in mineral-rich regions, to unlock scale, reduce delivered costs, and support regional industrial platforms.
Infrastructure is also essential for Africa’s competitiveness in green industrialization. Clean power, efficient logistics, and integrated corridors such as Lobito can reduce carbon intensity and improve access to markets increasingly demanding low-carbon and traceable supply chains.
The AFC report highlights emerging momentum across the continent: Angola is developing one of the world’s largest rare earth magnet metal deposits; Mozambique has become a key supplier of graphite and anode materials; battery-grade manganese sulphate projects are advancing in Southern Africa; and uranium production has resumed in Namibia and Malawi over 2024–25.
The study calls for stronger regional planning anchored in Africa’s long-term demand fundamentals, emphasizing that only by aligning production, processing, and infrastructure can the continent fully convert its mineral endowment into sustainable economic growth.
