Africa is sitting on an estimated US$29.5 trillion in mineral resources, yet the continent captures only a fraction of the economic value of this wealth, according to a new study by the Africa Finance Corporation (AFC).
The report, Compendium of Africa’s Strategic Minerals, highlights that around US$8.6 trillion of Africa’s mineral endowment remains undeveloped. Limited geological data, fragmented surveys, and low transparency continue to elevate investment risks, preventing exploration capital from flowing into the sector.
The study also stresses that mine-site values understate the continent’s true potential. Minerals processed into steel, aluminium, batteries, fertilisers, and alloys could multiply the value of Africa’s resources, but industrial capacity, infrastructure, and regional demand are not yet aligned to support this.
Currently, much of Africa’s mineral production is tied to Asian markets rather than local demand. This misalignment has led to economic shocks in recent years, including cobalt oversupply in the Democratic Republic of the Congo, steel plant shutdowns in South Africa, and intermittent manganese production in Gabon, even as the continent expands transport networks, power systems, and industrial capacity.
Infrastructure is central to unlocking value. Reliable power, transport connectivity, and access to industrial land are critical for processing minerals at scale. Integrated corridors, such as the Lobito Corridor, could reduce costs, improve market access, and support green industrialisation.
Several countries are already taking steps: Angola is developing one of the world’s largest rare earth deposits, Mozambique is anchoring graphite supply chains, and uranium production has resumed in Namibia and Malawi.
The report calls for coordinated regional planning to align mineral production, processing, and infrastructure with Africa’s industrial needs, ensuring the continent captures more of the wealth beneath its soil.
As Africa looks to convert its mineral endowment into industrial and economic growth, the challenge will be linking resources to the infrastructure and demand that can truly transform the continent’s fortunes.
