G7 critical minerals push opens US$64bn opportunity for Africa as countries race to build processing plants

The Group of Seven’s (G7) new $64 billion critical minerals initiative is expected to unlock major opportunities for African economies as global powers race to secure alternative supply chains for rare earths and other strategic minerals away from China’s dominance.

At a summit in Evian, France, on June 17, 2026, G7 leaders agreed to coordinate investment, processing capacity, recycling systems and supply chain data for critical minerals including lithium, nickel, cobalt and rare earth elements. The move signals a strategic shift toward securing long term access to materials essential for electric vehicles, renewable energy systems and advanced technology manufacturing.

Although major African economies such as Nigeria and South Africa were not formally present at the summit, the continent is widely seen as central to the success of the initiative due to its vast mineral reserves and growing interest in local processing.

African governments have increasingly pushed for what they describe as “beneficiation”, meaning minerals should be processed within the continent rather than exported in raw form. This approach is intended to create jobs, build industrial capacity and increase revenue from natural resources.

Kenya is among the countries positioning itself at the centre of this shift. President William Ruto said the country is close to finalising a critical minerals agreement with the United States that would ensure local processing of rare earths and other strategic materials. The proposed arrangement reflects a wider African demand for investment that supports domestic industrial development rather than raw material exports.

“We have agreed that the minerals will be processed in Kenya,” Ruto said, adding that Africa is seeking partnerships that promote industrialisation and employment rather than dependency on raw commodity exports.

Nigeria is also advancing its rare earth ambitions. Government officials recently inspected a planned $400 million processing facility in the country’s North Central region, which is expected to expand national capacity for refining strategic minerals such as platinum, chromium and uranium. If completed, the facility could significantly boost Nigeria’s role in global supply chains.

The Democratic Republic of Congo (DRC), already the world’s leading producer of cobalt, remains a focal point in the global minerals race. The country is seeking to modernise its geological data systems and improve exploration of underdeveloped deposits, with support from international partners including mining firms and development institutions.

Elsewhere, Egypt has positioned itself as a diplomatic bridge in the global supply chain discussion. Its participation at the G7 summit highlighted the strategic importance of logistics hubs, industrial infrastructure and access to the Suez Canal in connecting African production to global markets.

Despite the optimism, financing remains a major challenge. G7 leaders said 195 critical minerals projects announced since the beginning of 2026 have reached about €64 billion in combined investment, including equity and offtake agreements. However, African leaders argue that access to capital remains uneven and constrained by risk perceptions among global investors.

President Ruto stressed that Africa is not lacking capital but systems that enable it to flow into productive sectors. He called for stronger guarantees and risk sharing mechanisms that would allow African pension funds, insurance assets and sovereign reserves to participate in large scale industrial projects.

Analysts say the new G7 framework could accelerate investment in African mining and processing infrastructure, but only if governments, financiers and private companies align on regulatory clarity, energy availability and long term industrial planning.

Already, early signs of this transformation are visible. In West Africa, a rare earth processing plant is being developed as part of broader efforts to move up the value chain, while countries such as Zambia, Namibia and Zimbabwe are also expanding their roles in the global minerals ecosystem.

The G7 initiative therefore represents both an opportunity and a test case for Africa’s resource rich economies. If successfully implemented, it could mark a shift from raw mineral exports toward a more industrialised and value driven mining sector across the continent.