Africa is sitting on an estimated $29.5 trillion in mineral resources, accounting for roughly one-fifth of global mineral wealth, yet the continent continues to extract only limited economic value from this vast endowment, according to a new report by the Africa Finance Corporation (AFC).
The findings are contained in a study titled Compendium of Africa’s Strategic Minerals, unveiled at the Mining Indaba in Cape Town, which assesses Africa’s mineral sector beyond extraction and places emphasis on industrialisation, infrastructure development, and long-term regional demand.
Brandspur Brand News understands that the report estimates about $8.6 trillion worth of Africa’s mineral assets remain undeveloped, largely due to poor geological data, fragmented mapping, limited transparency, and heightened investor risk perception. These gaps, the AFC noted, continue to limit exploration funding and delay large-scale project development.
The report argues that Africa’s mineral wealth is significantly undervalued because mine-site assessments fail to capture the economic gains generated when minerals are processed into finished or semi-finished products such as steel, aluminium, batteries, fertilisers, and industrial alloys. When assessed at the point of industrial application, the AFC said Africa’s mineral value multiplies substantially, revealing untapped economic potential.
Speaking at the launch, AFC President and Chief Executive Officer, Samaila Zubairu, said the compendium was designed to reposition Africa’s mineral strategy around execution rather than possession. He explained that the report links mineral reserves to processing capacity, power availability, transport infrastructure, and regional industrial corridors, creating clearer investment pathways while reducing exploration risk and financing costs.
The study also highlights a structural mismatch between mineral production, infrastructure, and demand across the continent. In key value chains such as steel, Africa controls major reserves of manganese, chromium, nickel, and iron ore, yet remains commercially dependent on Asian demand cycles rather than domestic or regional industrial needs.
According to the AFC, this imbalance has left African mineral markets exposed to external shocks. Recent examples include cobalt production controls in the Democratic Republic of the Congo due to oversupply, shutdowns in South Africa’s steelmaking capacity amid weak demand and high costs, and periodic halts in manganese operations in Gabon following reduced alloy demand from Asia.
The report stressed that Africa’s challenge is not insufficient demand, but the failure to align mineral extraction, processing facilities, and infrastructure investment with the continent’s own long-term development needs.
Infrastructure was identified as the central pillar of any viable mineral strategy. The AFC noted that power reliability and cost, transport connectivity, and access to industrial land ultimately determine whether mineral beneficiation can succeed. To address this, the compendium mapped mineral assets alongside rail networks, ports, power stations, and transmission corridors to identify realistic zones for regional value chain development.
The report called for coordinated investments in shared rail systems and cross-border power infrastructure, particularly in mineral-rich regions, to unlock economies of scale and support integrated industrial platforms.
It also pointed to emerging opportunities across the continent, including rare earth developments in Angola, graphite and anode material production in Mozambique, battery-grade manganese projects in Southern Africa, and the resumption of uranium mining in Namibia and Malawi between 2024 and 2025.
The AFC concluded that aligning minerals, infrastructure, and industrial demand is critical for Africa to move from being a raw material exporter to a competitive player in the global green and industrial economy.
