New continental study calls for stronger infrastructure, regional value chains, and data transparency to unlock Africa’s vast undeveloped mineral potential….
Africa holds an estimated 29.5 trillion dollars in mine-site mineral value, accounting for roughly 20 per cent of global mineral wealth, yet the continent continues to capture only a small share of the economic value embedded in these resources, according to a new report released by the Africa Finance Corporation (AFC).
In a statement issued on Monday, the corporation said the study repositions Africa’s mineral sector through a development-focused lens, placing industrialisation, infrastructure, and long-term regional demand at the heart of the continent’s mineral strategy.
The report, titled Compendium of Africa’s Strategic Minerals, was unveiled at the Mining Indaba conference in Cape Town. It estimates that about 8.6 trillion dollars of Africa’s mineral wealth remains undeveloped, largely due to fragmented geological data, uneven coverage, and limited transparency, factors that continue to heighten risk perception and restrict investment across the sector.
According to the study, improving the quality and availability of geological data is a critical first step toward reducing project risk and unlocking exploration capital. The AFC also noted that mine-site valuations significantly underestimate Africa’s true mineral potential because they do not account for the additional value created when raw materials are processed into finished industrial products such as steel, aluminium, fertilisers, batteries, and specialised alloys. When assessed at the level of industrial use, the report states that Africa’s mineral endowment expands dramatically, revealing vast untapped value across the continent.
Speaking at the launch, AFC President and Chief Executive Officer, Samaila Zubairu, said the Compendium was designed to reshape how Africa approaches its mineral resources and translate natural wealth into practical development outcomes.
He explained that the report maps complete mineral value chains and connects reserves and production with processing capacity, power supply, transport infrastructure, and regional industrial corridors. According to him, improving transparency in geological data will help lower the cost of capital, reduce exploration risks, and guide more strategic investment into both mining and the infrastructure required to support beneficiation and integrated regional value chains.
The study found that mineral production, infrastructure, and demand across Africa rarely align geographically or strategically, calling for more coordinated regional planning built around the continent’s long-term development needs. Using the steel value chain as an example, the report noted that Africa possesses globally significant reserves of ferroalloys including manganese, chromium, and nickel, while iron ore production is entering a new growth phase. However, these supply chains remain closely tied to fluctuations in Asian steel demand rather than Africa’s own industrial expansion.
The report warns that this dependency carries significant economic consequences. It points to recent slowdowns in Asian steel demand, linked to China’s property market downturn and weaker construction activity, which have transmitted shocks into African mineral markets. In the Democratic Republic of the Congo, cobalt production quotas have been introduced to manage oversupply and falling prices. South Africa has seen primary steelmaking capacity shut down due to weak domestic demand, high production costs, and fragmented off-take, while in Gabon, major manganese operations have periodically suspended output following reduced alloy demand from Asia.
These disruptions, the report noted, are occurring even as Africa continues to expand transport systems, power infrastructure, housing, and industrial capacity that depend heavily on these same minerals. The challenge, it argued, is not insufficient demand but a lack of demand alignment, meaning mineral production, processing capacity, and infrastructure investments are not being coordinated around Africa’s long-term material needs.
The AFC report places infrastructure at the centre of Africa’s mineral development strategy, describing it as the critical system linking raw materials, processing, and market demand. It emphasises that power reliability and cost, transport connectivity, and access to industrial land ultimately determine whether value-added mineral processing can succeed.
To support this, the study mapped mineral deposits and producing assets alongside rail networks, ports, power generation hubs, and transmission infrastructure to identify regions where viable mineral value chains can be developed. It recommends targeted investments in shared rail corridors and cross-border electricity transmission, particularly in mineral-rich areas where coordinated infrastructure could unlock scale, lower costs, and strengthen regional industrial ecosystems.
Infrastructure is also seen as essential to Africa’s competitiveness in an era of green industrialisation. The report notes that access to clean energy, efficient logistics, and integrated development corridors such as Lobito can reduce carbon intensity and improve access to global markets where low-carbon and traceable supply chains are increasingly demanded.
The study highlights emerging developments across the continent, including Angola’s progress in developing one of the world’s largest and highest-grade rare earth magnet metal deposits, Mozambique’s growing role as a key supplier of graphite and anode materials, advancing battery-grade manganese sulphate projects in Southern Africa, and the resumption of uranium production in Namibia and Malawi between 2024 and 2025.
The report concludes that unlocking Africa’s vast mineral wealth will require stronger data systems, coordinated infrastructure investment, regional industrial integration, and policies that move the continent beyond raw material exports toward value-added production and long-term economic transformation.
