Staff Writer
Africa holds an estimated US$29.5 trillion in mine-site mineral value, equal to about 20% of global mineral wealth, but captures only a small share of the economic value linked to these resources, according to a new study by the Africa Finance Corporation.
The study shows that US$8.6 trillion of this value remains undeveloped, pointing to the continent’s under-explored status. It identifies fragmented geological data, uneven coverage and limited transparency as factors that increase risk perception and reduce investment.
The Africa Finance Corporation recommends improving the availability and quality of geological data to attract more exploration capital.
The report states that mine-site valuations do not reflect the full potential of Africa’s resources. Greater value is created when minerals are processed into products such as steel, aluminium, fertilisers, batteries and alloys. When industrial use is taken into account, the value of Africa’s mineral resources could be much higher.
The study, titled Compendium of Africa’s Strategic Minerals, was launched at Mining Indaba in Cape Town.
It presents the mining sector from an African development perspective, with a focus on industrialisation, infrastructure and regional demand.
“Today, AFC is proud to launch the Compendium of Africa’s Strategic Minerals, an initiative to convert endowment into execution pathways for collective prosperity,” said Samaila Zubairu, president and chief executive officer of the Africa Finance Corporation.
“The Compendium maps full value chains and links reserves and production to processing capacity, power and transport infrastructure, and regional industrial corridors, improving data transparency to de-risk exploration, lower the cost of capital, and guide smarter investment.”
The report finds that mineral production, infrastructure and demand often do not align at scale. It calls for stronger regional planning based on Africa’s long-term demand.
For example, Africa has large reserves of manganese, chromium, nickel and iron ore, yet supply chains remain linked to Asian steel markets rather than Africa’s own development needs.
The study notes that this mismatch has led to disruptions. Cobalt production quotas were introduced in the Democratic Republic of the Congo due to oversupply and lower prices. South Africa’s steelmaking capacity has declined because of weak domestic demand. Major manganese operations in Gabon have suspended production at times due to lower alloy demand from Asia.
The report places Africa’s mineral strategy within a changing global environment marked by trade tensions, export controls and industrial policies.
It calls for selective integration into global supply chains, especially for minerals with concentrated processing markets such as manganese, rare earths, graphite, uranium and alloying inputs used in defence, aerospace and clean energy.
The study also highlights recent developments. Angola is developing a high-grade rare earth deposit.
Mozambique has become a supplier of graphite and anode materials. Battery-grade manganese sulphate projects are progressing in Southern Africa. Uranium production resumed in Namibia and Malawi in 2024 and 2025.
The Africa Finance Corporation says the continent can capture more value from its mineral wealth by aligning production, processing, infrastructure and demand with regional industrialisation plans.
