from DION HENRICK in Cape Town
Western Cape Bureau
CAPE TOWN, (CAJ News) – AFRICA holds an estimated US$29.5 trillion in mine-site mineral value—around 20% of global mineral wealth—yet the continent currently captures only a small share of the economic benefits embedded in this extraordinary endowment, the Africa Finance Corporation (AFC) has said.
The report, Compendium of Africa’s Strategic Minerals, launched at Mining Indaba in Cape Town, South Africa argues that Africa stands at a pivotal moment.
With the right policies, infrastructure, and industrial alignment, the continent’s mineral wealth can be transformed from an extractive asset into a powerful engine for African industrialisation, regional integration and long-term prosperity.
Of the total mineral value identified, approximately US$8.6 trillion remains undeveloped. This reflects not a lack of resources, but an under-explored continent where fragmented geological data, uneven coverage and limited transparency have historically elevated risk perceptions and constrained investment.
The study identifies improved geological data quality and accessibility as a critical first step to de-risk projects, attract exploration capital and accelerate responsible development.
Crucially, the report emphasises that mine-site valuations dramatically understate Africa’s true mineral potential.
When minerals are processed into higher-value industrial outputs—such as steel, aluminium, fertilisers, batteries and advanced alloys—the value created expands by an order of magnitude.
This downstream transformation represents Africa’s greatest opportunity to retain value, create skilled jobs and build globally competitive industries that directly benefit African economies and citizens.
“The Compendium reframes Africa’s mineral sector through an African development lens,” said Samaila Zubairu, President and CEO of AFC.
“It links mineral endowments to processing capacity, power systems, transport infrastructure and regional industrial corridors, converting natural wealth into practical execution pathways for shared prosperity.”
The study finds that Africa’s mineral production, infrastructure and demand are rarely aligned at scale.
As a result, many African mineral supply chains remain externally anchored—particularly to Asian industrial cycles—rather than to Africa’s own growing needs for steel, energy systems, housing, transport and manufacturing.
This misalignment has exposed African producers to external demand shocks, even as domestic and regional infrastructure expansion accelerates.
The report argues that Africa’s challenge is not insufficient demand, but insufficient demand anchoring—failing to deliberately align mineral extraction, processing and infrastructure investment around Africa’s long-term development trajectory.
Infrastructure is therefore placed at the centre of Africa’s mineral strategy. Reliable power, efficient transport corridors, industrial land and cross-border connectivity are decisive in determining whether beneficiation and regional value chains are viable.
By mapping mineral assets alongside railways, ports and power networks, the Compendium identifies opportunities where coordinated regional infrastructure can unlock scale, lower costs and support integrated African industrial platforms.
In a fragmenting global economy marked by supply chain diversification, trade tensions and green industrial policy, Africa’s strategic relevance is rising.
The report calls for selective, value-adding integration into global supply chains—particularly for minerals such as manganese, rare earths, graphite and uranium—where African processing can enhance global resilience while advancing African development.
Encouraging progress is already visible across the continent, signalling that Africa’s mineral future can be defined not by extraction alone, but by industrial transformation for the benefit of its people.
– CAJ News